# Bank of Scotland Redress Case Study



## Winter Miles (3 Jan 2021)

Got cheques in from BOS on 31st. Numbers and background as follows.

2006 -  C. €460k mortgage @ 1.25% tracker IO for full term - 30 years.
After Yr 1 in 2007 went on fixed 3 Yr rate. When we came off it we were put on 1.5% Variable but this tracked the ECB rate. I investigated this about 3- 4 years ago and asked BOS for redress. This was denied.

Got similar letters as others in April 2020 to say that we were being put back on 1.25% rate and would receive refund and compensation.

Cheques totalled €16,395

Breakdown:
€11580 overcharged interest
€2329 Time Value of Money
€2086 Compensation
€400 Advice payment

Happy with outcome, not happy that they rejected my request for redress a few years back.

Good luck to everyone viewing this. I hope you all get back what you deserve.

In case anyone is wondering, we will be paying the refund amount 16k off the mortgage. We considered investing but just need to reduce the loan.


----------



## Brendan Burgess (6 Jan 2021)

Hi Miles

That seems about right.

A quick back of the envelope calculation:

Overcharge period: 10 years
Overcharged by 0.25%
Total overcharge 2.5%
Mortgage balance: €460k
€460k @2.5% = €11,500
Time value of money 2.5% of €11,580 = €2,895

The compensation is fair at 15% of the amount overcharged and the TVM.

For most people being overcharged by €1,000 a year would not be life changing, so it's very unlikely that a claim for extra compensation would succeed.

Brendan


----------

