EBS DAC

The Central Bank has imposed a significant fine on EBS in respect of serious and long running failings in meeting its obligations to its tracker mortgage customers. Mortgage lending is the core of EBS’s business, yet this investigation identified serious deficiencies in EBS’s mortgage services and systems. These deficiencies meant that EBS did not comply with its obligations to customers and many customers lost their tracker product/interest rate margin as a result, and were overcharged for sustained periods of time. EBS withdrew its tracker mortgage products in 2008, at which time EBS took no steps to assess the financial, contractual and regulatory implications of this for its existing tracker mortgage customers. Our investigation found that the cumulative effect of the failure to assess the impact of the withdrawal of tracker mortgage products and the existing deficiencies in the provision of mortgage services resulted in significant harm for EBS’s customers. EBS failed to address these deficiencies over many years, despite being made aware of tracker related issues through customer complaints and its own internal audit function. EBS’s prolonged failings resulted in extremely damaging consequences for its customers and their families, including the loss of 84 properties, eight of which were family homes. The Central Bank expects firms to comply with the Consumer Protection Codes in the provision of its services and in all its dealings with customers. Regulated firms are required to have adequate systems and controls in place to ensure compliance with this Code.