Mortgage lender error can affect clients’ ability to access new credit

Over 1,000 ICS Mortgages clients may have had their ability to access new credit damaged as a result of an error in submitting information about their existing mortgages to the new credit registry, managed by the Central Bank of Ireland.

ICS Mortgages, a subsidiary of the non-bank lender Dilosk, wrote to some 1,067 buyer and homeowner mortgage creditors to tell them that it had transmitted incorrect information about their loans to the Central Credit Bureau (CCR).

In the letter, ICS points out that it wrongly informed the register, which was set up by the Central Bank in 2018 to offer a centralized credit rating system, that these mortgages were in difficulty, while in actually they weren’t. Lenders usually check the registry when considering a loan application.

It is understood that all the affected loans had benefited from a rate cut – not due to any financial difficulty – but that this fact was wrongly transmitted to the CCR as being a “restructuring event”, which would indicate that the loan was in arrears, when they were not.

The incorrect data was first submitted in December 2017 and “this was fully rectified on July 31, 2019,” a spokesperson for Dilosk said.

Additional loan

The error means that if an affected customer had applied for credit from another source between March 2018, when the credit register went online, until the information was corrected, they would probably have been refused. an additional loan, given the apparent state of his mortgage.

The spokeswoman said eight clients told the lender that they had been wronged by the mistake.

“We are working directly with these customers to resolve any negative effects this may have had,” she said.

ICS / Dilosk said he was not sanctioned by the Central Bank for the mistake, but was liaising with the regulator and the Data Protection Commission.

Some of the relevant mortgages were issued by Bank of Ireland and were acquired by Dilosk in 2014, and some were rental mortgages issued by Dilosk since 2017 under the ICS Mortgages brand.

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