Banking

Probe could be launched into Irish car loan market, Bank of Ireland chief warns

Myles O’Grady said the Central Bank of Ireland could launch an investigation into the motor finance market similar to one currently taking place in Britain

Car dealers could also set the interest rates in motor finance loans at their own discretion, meaning they had an incentive to charge higher fee

Lenders that sold car loans to Irish customers over the last decade could be facing a major Central Bank investigation, the chief executive of Bank of Ireland has warned.

Myles O’Grady said the investigation recently launched by British regulators into claims that lenders mis-sold motor finance loans to customers “has the potential to be an issue” in the Irish market.

The Central Bank of Ireland has said it is “aware” of the ongoing probe into ...