The State's biggest watchdog was warned six years ago that banks like Permanent TSB were trying to take tracker mortgages off customers.
Today's Irish Independent says the then-Financial Services Ombudsman wrote to the Central Bank in 2009 calling for a probe across all banks.
Action has only recently been taken however, and in the meantime it is claimed that the lender's failures were a key factor in 22 repossessions.
Permanent TSB has also been ordered to pay out millions of euro in a major compensation deal.
A statement from the Central Bank last month said, "Permanent TSB have agreed to implement a major redress and compensation programme (Mortgage Redress Programme) to address the detriment suffered by 1,372 impacted Permanent TSB and Springboard customer accounts."
The Central Bank added that the consequences of these failures have included, "mortgage overpayments; mortgage arrears; legal proceedings; and in certain cases loss of ownership of properties, including some homes."
Payments may run as high as €50,000 to owner-occupiers and €25,000 for buy-to-let customers.
Personal Finance Editor with the Irish Independent, Charlie Weston, who broke today's story, explains why the banks are so keen to take people off tracker mortgages:
Fianna Fáil finance spokesperson Michael McGrath wants the Oireachtas Finance Committee to investigate the issue, including the role of the Central Bank:
