Watchdog unable to act on Bank of Ireland mortgages

Tim Wallace
Follow Tim
THE CITY watchdog can do little to help Bank of Ireland customers whose base rate tracker mortgage rates were hiked earlier this year, as most were sold before 2004, the regulator revealed yesterday.

In a letter to the Treasury Select Committee, Financial Conduct Authority chief Martin Wheatley said most of the 13,500 loans were sold before the relevant rules were brought in. Others were buy to let loans, which are not affected.

If the loans were sold now and if communications with customers not been misleading, Wheatley said action could be taken.

“We may have asked firms to undertake a customer contact and redress exercise, we may have sought an injunction or varied a firm’s permission to require them to remedy the noncompliance, or we could have imposed a financial penalty or issued a public censure,” he wrote.