seems one organisation just refunded the whole lot and never reduced the mortgage back to what it should've been if there was no overcharge. I thought Central Bank guidelines stated that the banks must do this.
peemac is correct.
Bank of Ireland refunded the full overcharge which is in clear breach of the Posting Guidelines.
Mine is an interest only mortgage so would have thought that all they can do is repay the interest overcharged
Think about it and I will exaggerate to make the point clear.
You started with a mortgage of €200,000
You were charged a total of €20,000 interest.
You never made any repayment at all so your balance before the correction had risen to €220,000
They interest should have been €15,000 so they overcharged you by €5,000.
They now correct your balance to €215,000 which is correct.
You want them to refund you the €5,000, so your balance would stay at €220,000
The bizarre thing, which is rarely pointed out is that the compensation was based on the overcharge and not on the overpayments.
Brendan