Up to 200 Permanent TSB customers could receive compensation after a customer's complaint that they were wrongly denied a tracker mortgage was upheld by the Financial Services and Pensions Ombudsman (FSPO).

The development was confirmed in a letter from the bank to Sinn Féin’s Finance Spokesman, Pearse Doherty.

The bank said in the correspondence that while the account that is the subject of the FSPO’s decision was deemed to be 'not impacted’ in the Tracker Mortgage Examination and the bank’s position remains the same in that regard, the ombudsman made a finding which requires the bank to provide the customer with a tracker mortgage.

"As part of Permanent TSB’s on-going monitoring of the outcomes of tracker mortgage related FSPO complaints, the bank is currently assessing the implications of this decision for other customers," it said.

"While it is too early to determine the final number of accounts that will definitively be impacted by this decision, initial indications are that it will be less than 200 accounts."

Mr Doherty pointed out that three years ago, the bank had been fined €21 million for harming over 2,000 tracker mortgage customers and breaching 42 Central Bank regulations.

"This harm ranged from significant overcharging to the loss of 12 family homes," he said.

"It is also three years since the Central Bank concluded its Tracker Mortgage Examination."

"Three years after the Tracker Mortgage Examination, there are still customers out there who are victims of the tracker mortgage scandal and don’t know it."

He said it showed that banks are still dragging their heels and fighting cases, instead of being proactive, identifying these customers and providing redress for the harm caused.

"This is not good enough," he added.

"It shows that the banking sector still has a long distance to travel in putting their customers first."