The Central Bank is expected to announce in the coming days details of a redress scheme for some Permanent TSB mortgage customers who were charged the wrong interest rate.  

The bank had blocked the customers from returning to their tracker mortgages after they were on fixed loans. 

Customers will be offered payment of the amount they were overcharged and compensation. 

It is expected the average payment will be between €20,000 and €30,000. 

In recent days some Permanent TSB customers have noticed that their mortgage rates have begun to fall. 

The bank is expected to write to these customers informing them of the cut to their interest rate. 

The issue relates to customers who broke from fixed rate mortgages early and wanted to return to their tracker rates. 

The fixed rate mortgages included a provision that customers could return to the trackers loans after the fixed periods had expired. 

But the bank did not permit those who had left their fixed loans early from returning to tracker mortgages. 

In February the Financial Services Ombudsman found that the bank had erred by not providing these customers with information regarding the consequences of breaking the fixed rate early. 

The bank fought the decision in the High Court but lost. It then appealed to the Supreme Court but subsequently decided to withdraw its appeal.