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Computer error cost Permanent TSB €33m

State-controlled bank refuses to make comment on the loss.

Permanent TSB Rathmines
Permanent TSB Rathmines
Image: James Horan/Photocall Ireland

PERMANENT TSB LOST an astonishing €33m in 2009 after a computer error allowed customers to switch mortgages free of charge.

According to a court judgment published today and highlighted by Nama Wine Lake, the money was lost after the state-controlled bank failed to charge customers in January and February 2009 for switching from fixed rate to lower variable rate mortgages.

Consumer websites began highlighting the fact that ILP, which owns the bank, were permitting customers to switch without penalty, which led to a sharp rise in the number of people looking to avail of the option of switching.

“While ILP honoured the no penalty quotations, the uncontradicted evidence before me was that this computer error was extremely costly for ILP-with a net loss of over €33m-and that ILP suspended switching in February 2009 when the problem was discovered until it could be rectified” said Mr Justice Hogan in his judgement.

A spokesperson for Permanent TSB said the bank would be making no comment.

The bank reported a €566m loss for the first half of 2012 last week.

“No surprise” as PTSB reveals €566 million loss for half year>

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