IRELAND’S communists condemned the country’s banking system yesterday after a probe revealed scandalous abuses that led to people losing their homes.

Permanent TSB, which was bailed out by the taxpayer during the 2008 banking crisis, has admitted “deeply regrettable” overcharging and wrongdoing on 1,372 mortgage accounts.

It has set up a “major” redress and compensation scheme for its customers who were forced off their tracker loans onto more expensive home loans.

The lender has admitted its actions led to customers paying higher instalments and being plunged into arrears, hit with costly legal bills and, in dozens of cases, having their home repossessed.

The scandal came to light after an investigation by the Central Bank of Ireland, which ordered the creation of a redress and compensation scheme for affected customers.

Central Bank enforcement director Derville Rowland said the offences had been “very serious” and their consequences “completely unacceptable.”

“Our first priority has been to address the customer detriment by requiring Permanent TSB to put in place a customer-focused redress and compensation programme,” she said.

Permanent TSB chairman Alan Cook and chief executive Jeremy Masding  said they “apologise unreservedly” for the very serious consequences of the bank’s failings.

“We are truly sorry that this has occurred and our absolute focus now is on correcting the position of every impacted customer as speedily as possible,” they said in a joint statement.

On the 61 people who lost properties, in some cases their homes, they added: “We will do everything in our power to help these customers.”

Communist Party of Ireland general Secretary Eugene McCartan said: “This is one in a line of overcharging and mis-selling scandals that have happened in Irish banking since the ’80s.

“As banking has increasingly become the key source of growth and profits within the global economy, we have seen this translate on the ground as the pursuit of profits at all costs, including at the expense of both customers and staff working in the sector.

“This won’t and can’t be regulated away, as to curtail the profiteering of finance is to halt the growth of capitalism more generally.”