Central Bank Fines Springboard Mortgages €4,500,000
The Central Bank of Ireland fined Springboard mortgages €4,500,000 for failing in its obligations to tracker mortgage customers, it was announced on Tuesday, November 29. This follows an enforcement investigation which found significant breaches of the Consumer Protection Codes 2006 and 2012, which Springboard have admitted to.
The Central Bank’s investigation found that the Firm failed to apply the correct interest rates to 222 customer mortgage accounts over a seven year period between August 2008 and July 2015
In addition to the fine and a reprimand, the Central Bank required the Firm to implement a major redress and compensation programme for customers impacted by the breaches, amounting to approximately €5,800,000 to date.
The failures were significant and had serious consequences for impacted customers, all of whom had to make higher mortgage repayments than required.
“Over a seven year period the Firm failed to apply the correct interest rates to 222 mortgage accounts,” Central Bank Director of Enforcement Derville Rowland said. “The consequences for impacted customers were serious and totally unacceptable. All 222 customers paid more than required, some fell into mortgage arrears and some were subjected to legal proceedings.
“The Central Bank required the Firm to cease applying incorrect interest rates to customers’ mortgage accounts and to implement a major customer focused redress and compensation programme. The programme was designed to put impacted customers back in the position that they should have been in and to compensate them for the detriment and loss caused to them.”
