Advertisement

We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

Permanent TSB Rathmines James Horan/Photocall Ireland
BANKING BOO-BOO

Computer error cost Permanent TSB €33m

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

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>

Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.

Your Voice
Readers Comments
40
    Submit a report
    Please help us understand how this comment violates our community guidelines.
    Thank you for the feedback
    Your feedback has been sent to our team for review.