permanent tsb has advised the Supreme Court that it is withdrawing appeals to that Court which were scheduled for hearing on the 16th February next. The appeals were in respect of a High Court decision (August 2012) arising from two complaints that had been upheld by the Financial Services Ombudsman (FSO).
The issue relates to the position of four customers (two mortgages) who broke the term of their fixed mortgage rates early and who subsequently wanted to move to tracker rates. The fixed rate mortgages which these customers had been on included a provision that at the expiry of the fixed rate term the customers could revert to a tracker rate. However, as the customers had chosen to break the fixed rate term early, the bank did not permit them to revert to a tracker rate.
The FSO found that the bank had erred by not providing these customers at the time they decided to break the fixed term early with all material information about this consequence of breaking the fixed rate early.
The bank has communicated to the FSO its decision to withdraw the appeals to the Supreme Court. The bank has also indicated to the FSO that it wishes to review a number (circa 80) of similar complaints which the FSO has received, and on which the FSO has not issued a finding pending the outcome of the Supreme Court case.
Speaking today a spokesman for permanent tsb said that the bank was also reviewing how it had dealt with all cases of customers in similar positions (i.e. mortgage customers who had a fixed rate product which included a right to move to a tracker rate at the end of the agreed fixed rate term but who lost that right because they broke from the fixed rate early).
The spokesman said this review will be concluded and any affected customers will be advised in writing if they are to receive redress as soon as possible. The spokesman also confirmed that this matter is subject to an ongoing enforcement investigation by the Central Bank and that the bank is engaging on this matter.
The bank has set up a dedicated line for customers who may have queries. The LoCall number is 1890 812 781, Monday – Friday 09.00 – 17.30. Customers dialling from abroad should ring +353 1 2151343.