Central Bank of Ireland Enforcement Action – Allied Irish Banks p.l.c. reprimanded and fined €83,300,000 for regulatory breaches affecting tracker mortgage customersJune 2022
On 22nd June 2022, the Central Bank of Ireland reprimanded and fined Allied Irish Banks p.l.c. (‘AIB’) €83,300,000 under its Administrative Sanctions Procedure for a series of significant and long-running failings in the treatment of its tracker mortgage customers. There were 10,015 mortgage accounts affected from August 2004 to March 2022 including in some cases the loss of family homes.
A number of failings were identified by the Central Bank:
- Failed to consider the entitlements of customers when it withdrew the tracker mortgage product
- Breached customers’ mortgage contracts, delayed in rectifying the breach, and failed to take immediate and conclusive action to determine for these customers the financial implications of its wrongdoing
- Wrongfully excluded customers’ mortgage accounts from the TME (Tracker Mortgage Examination)
- Failed to handle customer complaints in a fair and consistent manner
- Failed to properly manage its mortgage services to customers
- Failed to properly implement the TME’s Stop the Harm principles
Each of these items is addressed in more detail in the press release and enforcement notice, links for these are below.
The Central Bank’s Director of Enforcement and Anti-Money Laundering, Seána Cunningham said “The Central Bank has imposed a significant fine on AIB in respect of serious and long running failings in meeting its obligations to its tracker mortgage customers. The consequences of AIB’s prolonged failings were serious and included significant financial strain and distress for those affected and their families.”
For the press release from the Central Bank see link: