THE CENTRAL BANK of Ireland has launched a full inquiry into a former Permanent TSB executive over suspected breaches of consumer protection laws in relation to the tracker mortgage scandal.

It’s the first such inquiry into an individual related to the debacle and follows on from the regulator’s examination of Permanent TSB’s treatment of tracker mortgage customers from 2004 to 2018.

In 2019, the bank reached a €21 million settlement with the Central Bank in respect of serious failings in its handling of 2,007 tracker mortgage customer accounts.

The regulator did not refer that matter to a full inquiry because PTSB admitted to 42 separate regulatory breaches and accepted the Central Bank’s sanctions.

However, in cases where a regulated company or an individual does not make a full admission or agree to sanctions following an investigation, the Central Bank has the power to refer the matter to a full inquiry for determination.

The Central Bank would not name the individual in question but said it has “reasonable grounds to suspect” that they participated in a “contravention” of the Consumer Protection Code.

UK barrister Peter Hinchcliffe will lead the inquiry and will determine whether it can proceed in public or private.

PTSB apologised “unreservedly” following the  €21 million fine handed down to it under the Central Bank’s Administrative Sanctions Scheme in 2019.

The figure reflected a gross fine of €30,000,000, reduced by 30% to €21,000,000 in accordance with the early settlement discount scheme provided for under Central Bank rules.

At the time, the Central Bank’s Director of Enforcement and Anti-Money Laundering, Seána Cunningham, said that the initial investigation into PTSB found that they had “failed to put their customers first, with distressing and, in some instances, devastating consequences”.