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AIB Group to pay nearly EUR100 million fine over tracker mortgages

Thu, 23rd Jun 2022 12:24

(Alliance News) - Dublin-based bank AIB Group PLC has agreed to pay almost EUR100 million in fines on Thursday, after the Central Bank of Ireland concluded its investigation into the firm's tracker mortgages.

In a press release, the CBI reprimanded AIB "for a series of significant and long-running failings" in the treatment of its tracker mortgage customers of 10,015 mortgage accounts in the period from August 2004 to March 2022".

AIB has admitted to 57 separate regulatory breaches, according to the CBI.

"AIB's failings caused unacceptable harm and loss to those impacted customers over the course of nearly 18 years. Thousands of customers were overcharged and, at the worst end of the scale, customers lost 53 properties, 13 of which were family homes. The actions of AIB had devastating consequences for its customers," the CBI said.

AIB was fined EUR83.3 million for its breaches. EBS, which was acquired by AIB in July 2011, also was fined an amount of EUR13.4 million for 36 regulatory breaches between August 2004 and June 2020.

Accordingly, AIB has agreed to pay a total fine of EUR96.7 million.

Shares in AIB were down 3.7% to 216.00 pence each in London on midday Thursday.

The Central Bank noted AIB's "overall co-operation" in the investigation, despite its "litany of failings" with regards to the tracker mortgages.

The financial impact will be recorded as an additional charge in its 2022 financial accounts, AIB said, and it has already made a provision of EUR70 million in relation to the matter in prior years.

The settlement now brings the CBI's investigation into AIB's tracker mortgages to a close.

By Elizabeth Winter; elizabethwinter@alliancenews.com

Copyright 2022 Alliance News Limited. All Rights Reserved.

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