Recent events in the Irish banking sector have highlighted challenges faced by lenders and credit servicers in relation to the treatment of customers. These challenges are amplified when there is a lack of familiarity with regulatory requirements, and potential pitfalls can become reportable errors if left unaddressed.

Lenders and credit servicing firms are included within the CBI’s regulatory remit and are subject to CBI sanctions for prescribed contraventions, which can include a penalty of €10m or up to 10% of turnover. Furthermore, the Individual and Senior Executive Accountability Regimes (IAR/SEAR) place additional responsibility on financial institutions.

The financial cost of remediating customers where an error is identified can be substantial, particularly where an issue has existed for a number of years. In 2019 the CBI reported that €74 million was returned to consumers as a result of errors, most of which related to the banking sector. Such errors also have a negative impact on an entity’s reputation, both with consumers and with the regulator.

In the document below we have set out how our extensive experience, technology accelerators and solutions can help provide you with confidence that your mortgage and loan book calculations are fit for purpose.

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If you have any queries on the solutions outlined in our PDF, please contact Gillian Kelly, Head of Conduct Risk Services.

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