A Central Bank inquiry set up to probe alleged participation by the former Permanent TSB chief executive, David Guinane, in the commission of a prescribed contravention by the bank around its treatment of tracker mortgage customers has resumed public hearings.
The inquiry, led by sole member Peter Hinchcliffe, is beginning several days of hearings aimed at addressing legal issues and matters to do with the management of the inquiry.
This comes ahead of the start of substantive hearings next February.
In his opening statement this morning, Mr Hinchcliffe, who is a barrister, said notice of the inquiry was issued to Mr Guinane and then Permanent TSB in November of 2021.
He said the notice explained that the Central Bank had determined that it had reasonable grounds to suspect that Mr Guinane participated in the commission of a prescribed contravention by PTSB during the period from 19 January 2009 to April 2010 whilst he was part of the management of the bank.
Mr Hinchcliffe said that during the period PTSB decided to apply, or decided to continue to apply, an interest rate for tracker mortgage customers coming off a temporary fixed rate that was less favourable, except where the customer raised specific queries about the rate they were to be charged.
He said the Central Bank suspects PTSB treated those customers who did not complain about the tracker rate that was applied unfairly and contrary to their best interests.
"The Central Bank suspects that this was a breach of General Principle 1 of the Consumer Protection Code 2006 which required PTSB to, amongst other things, 'ensure that in all its dealings with customers and within the context of its authorisation it acts honestly fairly and professionally in the best interests of its customers and the integrity of the market'," he said.
Mr Hinchcliffe also added that the Central Bank suspects that Mr Guinane, while CEO of PTSB, participated in the bank's breach of the Consumer Protection Code 2006.
The inquiry is scheduled to sit for four days to consider the issues.
"During this time, I intend to hear oral submissions from the participants to the Inquiry on a number of key issues of law that may be important in deciding the outcome of the Inquiry and, which may be capable of being decided without reference to the particular facts that have to be determined in the course of this Inquiry," he said.
"I expect that this Legal Issues Hearing will save time that would otherwise have been taken at the Substantive Inquiry Hearing on 21 February 2024 to enable the participants to address me on these key issues of law," he added.
The sole member also added that he expects that the legal issues hearing may help to narrow issues for the participants, leading to more efficiency at the substantive hearings next year.
"I will also in due course consider whether I may, consistent with the statutory requirements set out in the legislation, make one or more provisional or preliminary legal rulings where this is possible in advance of the Substantive Inquiry hearing," he said.
The inquiry is being run under the regulator's Administrative Sanctions Procedure.
In May of 2019, Permanent TSB was fined €21m over serious failings in relation to its handling of its tracker mortgage customers between 2004 and 2018.
