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Thousands more mortgage borrowers caught up in ‘largest scam ever’

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  • 18/10/2017
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Thousands more mortgage borrowers caught up in ‘largest scam ever’
The tracker mortgage scandal in Ireland has been described as the “largest scam ever perpetrated on customers in the State”, after it emerged that thousands more borrowers are affected than was previously believed.

The latest progress report by the Central Bank revealed that the number of borrowers caught up in the tracker deal controversy had jumped by more than 3,000 to a total of 13,000 borrowers. These borrowers were either denied a tracker mortgage or forced to pay a higher rate of interest.

According to the report, 23 borrowers have lost their homes as a result of lenders’ actions, while a further 79 have lost investment properties.

Around a quarter of affected borrowers have received some form of compensation to date, worth a total of €120m (£107m).

What’s more, the Central Bank accused lenders of failing to engage with the investigation, and of trying to get away with “unacceptably low” compensation offers; the Bank said it had had to repeatedly challenge lenders to improve their redress proposals.

David Hall, chief executive officer of the Irish Mortgage Holders Association, told Newstalk that the scandal was “outrageous”, and accused mortgage lenders of working together.

“No doubt there was collusion. It is beyond any reasonable doubt that such a massive cover up could have just happened… This has crippled many people and has been going in for years.”

The Central Bank earlier this year said it had contacted the Gardai over suspicions of collusion.

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