Breifly explain Tracked Mortgage and tracker mortgage scandal?

Mortgage tracker is a mortgage that meets the requirements of the European Banking Commission and is set by the European Central Bank (ECB) rate. So, to put it simply, if the ECB rate increases, your mortgage interest rate increases, and similarly, if the ECB rate decreases, your mortgage interest decreases, unlike a mortgage that has a variable or fixed interest rate.

Mortgage Tracker Scandal

AIB, Ulster Bank, KBC, Permanent TSB and other banks have been implicated in the latest scandal in which clients were switched from tracking mortgages to more expensive floating rate mortgages, tracked rates were not applied correctly, and the size of the mortgage capital and repayment amounts percent were greatly overestimated. Many clients were informed and received compensation from some banks in the amount of the amount set by the bank. The compensation method currently used by various banks is unclear and does not take into account the individual’s personal circumstances. Various banks did not investigate how the individual was injured before the banks decided on the amount of compensation.

Compensation claims

The tracker mortgage scandal has affected thousands of people across the country. If you have suffered from mental health problems or if you were diagnosed with a recognized mental illness such as depression or anxiety as a result of the financial pressure that you were in, and if you were not diagnosed, if the correct tracker rates were applied correctly, then you may be eligible to file a claim against an appropriate financial institution for your injury and suffering.

Permanent TSB has calculated the compensation payable at approximately 9.5% of the quantity overcharged. From a legal viewpoint, Permanent TSB has no right to work out the quantity of compensation that ought to be paid. From a practical point of view, Permanent TSB has no ability to work out the quantity of compensation that ought to be paid. Compensation can only be determined on a case by case basis because the amounts overcharged and effects of the overcharging vary from borrower to borrower.

For example:
If Permanent TSB’s overcharging resulted during a couple’s home being repossessed, how can they quantify what compensation these people should get?

If Permanent TSB’s overcharging resulted during a couple struggling to form repayments over the previous couple of years, how can Permanent TSB quantify the financial pressure, stress and hardship this has caused?

If Permanent TSB overcharged a borrower €40,000 over a 5 year period, how can they quantify the loss of opportunity this has caused? for instance , one borrower may need invested this money in shares that have now doubled in value. Another couple may have put this money into a pension which might have entitled them to tax relief on their income. Another couple may have used this extra money to send their child to a personal school.

Therefore, it’s vital that you simply consult solicitors in Dublin if you’ve got been overcharged.