AIB Under Fire: Central Bank Urged to Investigate Mortgage Overcharges

URGENT UPDATE: Donegal Deputy Pearse Doherty has called for an immediate investigation by the Central Bank into serious allegations of mortgage overcharging by AIB. Reports have surfaced that the bank has overcharged approximately 55,000 customers on their tracker mortgages, failing to pass on critical benefits from European Central Bank (ECB) rate cuts since acquiring these loans from Ulster Bank in 2022.

Doherty, the Sinn Féin spokesperson on Finance, expressed deep concern, stating, “This is extremely troubling and represents yet another blow to public trust in our banking institutions.” He highlighted that AIB’s actions contribute to the growing skepticism surrounding banking practices, especially given the bank’s substantial profits and minimal tax contributions.

The troubling news comes as AIB faces scrutiny for previously compensating customers after buying €5.4 billion in loans from Ulster Bank. Doherty emphasized the importance of protecting homeowners, recalling assurances made by Finance Minister Paschal Donohue, who promised that contract terms would remain intact post-acquisition.

“This will be the second time AIB has had to issue payments to compensate customers,” Doherty noted, underscoring AIB’s status as a “repeat offender” in mortgage-related issues. He insisted that the Central Bank must adopt a zero-tolerance policy towards such violations, stating, “The bank needs to be on the side of the customer, not the banks.”

In a further critique, Doherty condemned AIB’s decision to outsource the management of these mortgages to Mars Capital, a firm often characterized as a “vulture fund.” He argued that if AIB genuinely values its customers, it should directly manage these mortgages rather than delegating that responsibility.

The urgency for action is underscored by AIB’s recent history; only a few years ago, the bank was hit with a record fine of nearly €100 million due to its involvement in the tracker mortgage scandal. The ongoing issues surrounding mortgage management and customer treatment signal a critical moment for regulatory intervention.

As this situation develops, stakeholders and affected customers are urged to stay informed. The Central Bank faces mounting pressure to ensure that banks are held accountable and that customers receive fair treatment. The call for reform in banking practices has never been more pressing, as public trust hangs in the balance.

Stay tuned for updates as this story unfolds, and share your thoughts on this urgent issue impacting thousands of homeowners across Ireland.