NWG NatWest Group plc

By Adriano Marchese

Ulster Bank Ireland DAC has been fined 37.8 million euros ($44.7 million) by the Central Bank of Ireland for breaching obligations to tracker customers with mortgage accounts.

The Central Bank of Ireland said Thursday that an investigation found serious failings in the treatment of Ulster Bank Ireland's tracker customers holding 5,940 mortgage accounts between August 2004 and April 2020.

A tracker mortgage is a type of variable-rate mortgage that tracks another rate--in most cases, a country's central bank's rate.

Ulster Bank of Ireland, which is a part of NatWest Group PLC, has been found to deny customers lower tracker rates, which they were entitled to, despite receiving complaints. The investigation found that only customers who complained received the lower rate.

The original fine was for EUR54 million, but was reduced to EUR37.8 million in a settlement.

"This fine reflects the gravity with which the Central Bank views UBID's failings. UBID caused unacceptable and avoidable harm to its impacted tracker customers; from extended periods of significant overcharging to the loss of 43 properties, 29 of which were family homes," the central bank said.

Prior to this fine, Ulster Bank Ireland had already been required to pay EUR128 million to affected customers as part of the Central Bank's Tracker Mortgage Examination, which was established in 2015 to ensure lenders were providing tracker customers with their entitlements.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

March 25, 2021 11:56 ET (15:56 GMT)

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