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Statement from KBC Bank Ireland regarding the Central Bank Tracker Mortgage Examinatio
KBC fully acknowledges the past errors that occurred in relation to Tracker Mortgages should not have happened, were wrong and we sincerely apologise for this once again. KBC takes this review very seriously and we recognise that the Examination has taken longer than originally anticipated. It is a lengthy, complex process, involving a review of not only the documentation but also individual customer circumstances. We also understand the desire from all stakeholders to conclude the review as soon as possible and this matter is the top priority for the bank.
In a prior review concluded in 2010, the bank identified 571 customers that would have moved from a fixed rate mortgage to a standard variable rate, but based on a review of their individual circumstances, the bank concluded that these customers should return to a tracker rate following the fixed rate period. These customers had their accounts amended prior to the expiry of the fixed rate period so they then correctly rolled to a tracker product.
Under the current Tracker Examination, the bank has so far identified an additional 490 impacted customers that did not move to a tracker rate after a fixed rate period or were moved off their tracker rate following a change to the terms of their loan or are on the incorrect tracker rate. As part of the ongoing review and within the Tracker Examination, KBC continues to examine tracker mortgage customer files and as a result anticipates that up to an additional 200 to 600 customers may be impacted. KBC expects to have concluded the identification of the vast majority of customers impacted by the Tracker Examination by year end.
KBC has already corrected the rate for a number of customers earlier this year in accordance with the Tracker Mortgage Examination Framework and will continue to do so as cases are identified. Redress and compensation payments will commence in early November 2017.
Customers that have queries can contact KBC by email at TrackerMortgageExamination@kbc.ie or by calling on 01-6646983.