Hi Balfour
AIB's argument in that letter seems to turn on whether or not a tracker rate was "available" when your fixed rate period expired in 2013.
I would argue that trackers were in fact "available" in 2013 - thousands of AIB borrowers were on trackers at that time - they simply weren't offered to new borrowers or as a roll-off option for fixed rate borrowers. If AIB had meant that trackers had to be generally offered by AIB to new borrowers or as a roll-off rate when your fixed term expired for this option to be applicable, then AIB should have explicitly said so in their contract.
However, even if the word "available" should be read to mean "offered to new borrowers or as a roll-off rate", I think you could argue that by failing to offer a tracker rate as a roll-off option, AIB unilaterally changed an inherent and fundamental feature of the loan product, without your prior agreement.
I would definitely appeal AIB's decision to the FSO, with a copy to the Central Bank.
Hope that helps.
Just one last thing, is there a lot involved in making a case to the FSO
Hi All
I have just done my letter to AIB going to reg post it today. all the advice here is great.
Hello,
Came home from our hols today. Good news awaiting us. Letter from Aib restoring our tracker to our original rate! Mortgage payments reducing immediately. Will be in touch again. Standard letter I think. We fixed and broke in 2008. Lost tracker. Complained to fso. On hold pending review.
Hi Kim,No this letter came out of the blue, my fixed rate ends next wk so I got the letter with the different rates available to me. If I didn't reply I would automatically be put on the variable which is now 3.4% then a few days letter I got the same letter you seem to have got offering the prevailing rate of 3.67%. I took it out in June 2008 and I wasn't offered a tracker by the looks of my loan offer document.... Is everyone that wasn't offered a tracker getting these letters? I don't want to ring aib until I know what I am talking about...