# AIB - update on my appeal to the ombudsman



## pats22 (16 Mar 2012)

Hi
I wanted to post an update on my appeal to the ombudsman discussed  on the AIB entry on the problems with tracker mortgage sticky page. 
The Situation was – 
• Took out mortgage in 2005 with AIB on one year fixed introductory rate – lowest rate offered at the time. 
• After this went onto tracker of 0.95% which specified this rate for the duration of the loan. The documentation received with tracker stated that “You may switch from a tracker rate to a fixed rate or the svr at any time. If you subsequently switch to a fixed rate and on the expiry of the fixed rate period fail to select a new interest rate option (the then prevailing tracker rate, fixed rate or svr) the mortgage loan will automatically convert to the svr. It will not revert to the original tracker rate.”
• We then moved onto a fixed 5 year after reviewing the document received with the tracker and believing that we would be offered a tracker back upon completion of the fixed term to be the current ECB +0.95%.
During the period of the fixed rate they pulled the trackers off the market and refused twice in writing to offer me any tracker on the completion of the fixed period.
Given that I was twice told in writing that I wasn’t allowed to move onto a tracker at the end of the fixed rate period I ended the existing fixed rate period early and moved to another fixed rate just in time to beat an increase in the fixed rates – I only did this as I was twice told I would not get the tracker back. It was only after this that I found that the ombudsman may be able to help me with this case. 
So I took a case to the ombudsman to try and get my tracker rate back and the fixed rate breakage fee and extra interest rate payments refunded as I believed that AIB were in the wrong to refuse me a tracker upon completion of the 5 year fixed rate. Unfortunately he ruled against me. 

His main gist was that the original loan agreement specified that the original 1 year fixed term was to role onto the SVR “unless borrowers avail of another interest rate option then on offer by the bank.” – so we did avail of a different rate as we moved onto a tracker at this point.

Concerning the document received with the tracker quoted above the “correspondence simply advised the complainant of the mechanism that would apply in the event that a fixed term expired and the mortgagor chose no alternative rate…This correspondence amends the loan agreement to the extent that a new interest rate is to apply to the mortgage.”

Is he correct in this is it not a new type of loan rather than a simple change of interest rate? Given that how do you ever move form one type of loan agreement to another- are you always tied back to the original one?

I had though my case was very similar to the one on page 52 on the ombudsman’s 2010 report where he noted that “The FSO acknowledged the Bank’s commercial discretion to remove ‘tracker’products from the market. However, having considered the documentation available at the time of the Complainant opting to move to a fixed interest rate, the FSO found that she could have reasonably expected to revert to the ‘tracker’ rate upon expiry of the fixed rate period. The FSO stated that the documentation was not clear and the consequences (good or bad) of moving from the tracker to the fixed interest rate for a set term were not sufficiently set out in the documentation.” Granted their initial loan was a tracker so this may be the fundamental difference.

So I was wondering has anyone any feedback, was any one else in the same position where by they started on a 1year fixed introductory rate, moved to a tracker and the fixed and did they manage to get their tracker back. Has anyone gotten a different opinion from the ombudsman on the paragraph quoted above that I received with the tracker re its transparency etc as it’s my opinion that the bank didn’t mean you couldn’t get a tracker back as they hadn’t even though of it at the time and left the trackers on the market for a further two years – and if it was what they wanted to do they could use the terminology they do now 

“Note: If you chose to convert a loan from a Tracker rate to a Fixed interest rate, at the end of the Fixed rate period, you will only have the option of moving to a Variable rate or choosing a new Fixed rate term. The original Tracker rate will not be available.“

Sorry for the long post. Any feedback much appreciated.
pat


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## howardieOne (23 Jun 2015)

Hi there

I know its been along time. I think a had similarities with yourself. Wondering if you got any satisfaction?
I will post my situation on another thread @ link it here


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## pats22 (10 Aug 2015)

hi 
sorry for the delay in replaying - the above was as far as i got - as far as i could tell from his ruling if you hadn't initially taken out a tracker you had no chance of ever getting back on to it and we had a one year fixed introductory rate
id be interested in hearing about your situation


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