Central Bank inquiry issues finding in relation to former PTSB CEO
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The Central Bank's tracker mortgage related inquiries have led to significant fines for institutions, and contributed to significant legislative change. The first inquiry in relation to an individual has now made findings.
David Guinane, the former CEO of Permanent TSB (PTSB), was found to have breached the Central Bank's Consumer Protection Code. The inquiry found that Mr. Guinane was involved in actions that failed to adhere to the necessary standards set for protecting consumers' interests in relation to tracker mortgage accounts between the years 2009 to 2010.
UK Barrister, Peter Hinchliffe, the chairman and sole member of the inquiry, found that on the balance of probabilities, Mr. Guinane participated in a breach by PTSB of its regulatory obligations by not acting in the best interests of its customers when they indicated their intention to return to a tracker-rate loan, where their mortgage loan agreements contained a contractual clause to do so.
The Inquiry found that unless a consumer enquired or objected to the rate they were given, the bank implemented a procedure that precluded providing the original tracker rate to which some customers were entitled to. However, Mr Hinchliffe stated that there was no finding of dishonesty against Mr Guinane and that he "did not form an intention to harm or take advantage of customer".
The issue of sanction, if any, will be decided later. Any decision may ultimately be appealed.
Written by: James Roche and Barry Fagan