€21 Million PTSB Fine Will Adversely Impact Consumers
The €21 million fine imposed by the Central Bank on Permanent TSB in respect of tracker mortgage failings is likely to hurt the company’s mortgage holders, other borrowers and savers in terms of interest rates rather than having any real impact on those responsible, according to Brokers Ireland.
Diarmuid Kelly (pictured), Chief Executive at the organisation which represents 1,250 Broker firms, said: “Since PTSB is 75pc owned by the State the fine gives a new meaning to the circular flow of money i.e. it’s just one arm of the state fining another. The fact of the matter is there has been no accountability whatsoever amongst lenders involved in the tracker mortgage scandal, no one has been held personally accountable. Until such time as that happens there will be no real motivation to do the right thing by consumers.”
He added: “The fine may be intended to send shock waves through the banking system and enable regulators to feel good about wielding the stick but it’s consumers whom regulators are supposed to protect who are likely to feel the real pain arising from the fine.”
