A key part of a scandal involving home repossessions was played by the boss who sold LV to private equity vultures.
Alan Cook heads the scheme to sell the 178 year-old mutual insurance to Bain Capital. This move has outraged both policyholders, and parliamentarians.
It is now clear that he had to apologize to the 1,400 mortgage victims who had been overcharged.
Alan Cook (pictured) is the man behind the sale LV to private equity investors and was a major player in the home repossessions scandal
Permanent TSB’s mortgage scandal began long before Mr. Cook (68) joined the Irish lender in 2011.
The bank charged homeowners too much in the 2000s by not telling them that they could get tracker mortgages at a lower rate after their terms ended.
Mehr than 12 families lost their homes. Other people suffered financial hardship and other health issues that doctors blamed for stress due to financial worries.
Up to 100 complained to Ireland’s Financial Ombudsman, which ruled in their favour in 2010.
However, the board did not admit to fault. They challenged several decisions at the High Court. The High Court upheld 2012’s ruling in favour victims.
Under Mr Cook’s leadership, PTSB dug its heels in and appealed to Dublin’s Supreme Court.
It was not until 2015 that it agreed to pay victims up to £42,000 each as part of a £47million compensation package.
As they had to keep making higher payments during the appeal process, their pain was prolonged.
The bank was fined a record £17.8million in 2019 for the ‘unacceptable harm’ it caused.
MPs and LV members said they were ‘dismayed’ that Mr Cook was ever handed the LV job, and questioned whether he backed the sale to Bain for personal gain
It comes as doubts emerge over Mr Cook’s future at LV amid criticism of his handling of the proposed takeover by Bain Capital.
As chairman of the insurer, he is due to stay on for two years after the sale, picking up £410,000 in the process.
However, sources close to this deal suggest that he might be replaced to please members of the public and to silence critics.
The Commons Treasury committee yesterday launched a mini-inquiry into the future of mutuals, promising to interrogate ‘the implications of the proposed LV sale’.
Last week, the Daily Mail, which has championed the campaign to prevent demutualisation, revealed Mr Cook, who lives in a £1million house near Milton Keynes, Buckinghamshire, played central roles in the Post Office IT scandal and the rollout of deadly smart motorways.
From 2006 to 2010, he was the managing director at the Post Office. 200 local postmasters were incorrectly charged.
And he was chairman of Highways England between 2010 and 2013, when it played a key role in adjusting the design of smart motorways – including a reduction in proposed numbers of life-saving refuge areas.
MPs and LV members said they were ‘dismayed’ that Mr Cook was ever handed the LV job, and questioned whether he backed the sale to Bain for personal gain.
Bain Capital’s founder, Mitt Romney. Cook leads the effort to transfer LV’s 178-year-old mutual insurance LV from Bain Capital to Cook.
Gareth Thomas, Labour chairman of the all-party parliamentary group on mutuals, said: ‘To my mind, Mr Cook was never a suitable candidate and this string of controversies appears to underline that he was the wrong choice.’
Pensioner Clarissa Johnson, from Dorset, who has been with LV since 2011, said: ‘I can’t believe there’s another misstep in Mr Cook’s history.
I’m just dismayed. I have completely lost trust in LV’s bosses.’
MPs, as well as industry and city figures have attacked the takeover proposal.
LV bosses have been accused of failing to disclose vital information to help its policyholders evaluate the £530million offer and answer transparently about pay.
Policyholders have been offered a ‘measly’ £100 each and have until December 10 to vote on the deal.
LV Cook and Alan Cook refused to comment.