Tracker Mortgage Scandal
In June 2022, AIB, Ireland’s second-largest lender, was fined €83.3 million by the Central Bank of Ireland (CBI) for denying over 10,000 customers access to cheaper mortgages that tracked base rates. EBS, a subsidiary of the bank, was fined €13.4 million for similar failings affecting 2,845 customers.1 AIB and EBS were penalized for overcharging customers and breaching contracts, as well as for failing to handle complaints fairly and to compensate affected customers appropriately, in what is now referred to as the “Tracker Mortgage Scandal.” Ultimately, according to the CBI, twenty-one customers lost their family homes as a result of these banks’ actions. “The fine against AIB is the largest fine imposed by the central bank ever,” said Derville Rowland, then the CBI’s Director-General of Financial Conduct.
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