# BOI increasing business lending rates due to deposit rate increases



## Bobby1 (14 Oct 2011)

Hi, 
Im posting this here as its deposit related but feel free to move it if its in the wrong forum.

Got a letter this morning from Bank of Ireland to advise due to an increase of the banks funding costs, mainly from customer deposits, they are changing the way they calculate their lending rate to businesses.

This means that I can expect an approx. .70% added to my rate. They have advised the rate will be calculated daily and is available in branches.

I do not have any deposit business with BOI, just lending, and I have long believed that the deposit market in Ireland is totally ridiculous, so now as a result of BOI pushing up retail deposit rates with their crazy 2 year savings paying 9% I have to pay more on my lending??

I also saw this morning on RTE that the regulator has told banks to stop increasing SVR rates, which is good in the short term, but what about deposit rates? SVR rates have increased in part due to banks overpaying on deposits...surely the regulator should be addressing this too?


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## Stressed1 (21 Oct 2011)

i also received one of these letters, even though i have a letter of offer and a contract with them for a 5 year term at 1.75 over euriobar, however they have now informed me that they are changing the way they calculate their interest rates to BCOF, in lay mans terms Bank cost of Funds, in my case tjis is a very large increase to my monthly payments and may damage my company, as it increases my payments by .7%.

Surely this is illegal


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## Lightning (21 Oct 2011)

One would think they would need to comply with the contact. 

Have you challanged BoI?


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## rubberband (28 Nov 2011)

hi guys, has anybody recieved anymore information on this topic.can BOI get away with this.


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## Lightning (28 Nov 2011)

Has anyone asked BoI? Has anyone spoken to them? Again, surely they need to stick to the contract.


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## camlin90 (28 Nov 2011)

OP - tough s*1t really.
Economics 101: supply and demand, if everyone wants widgets and nobody has them, expect to pay.
BOI could drop their rates to zero in the morning, but they'd be calling in your loan a week later when all their deposits walk out to KBC, Nat UK, Investec etc, and then coming looking for a bailout the following week.
Govt regulate deposit rates, all money will walk out of the banks and into state savings, if they drop those rates, they'll walk out to overseas banks.

If you feel your business qualifies as a charity, I think there are supports available. Otherwise, depositors aren't the saint vincent de paul.

Written contracts are a different matter entirely.


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## Lightning (28 Nov 2011)

There is a letter of contract here as one of the posters said:



> i also received one of these letters, even though i have a letter of offer and* a contract with them *for a 5 year term at 1.75 over euriobar


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## rubberband (16 Dec 2011)

hi people, has anybody had an further success with bank of ireland on this issue, i mean i have written a stern letter to my bank manager saying that i just cannot pay this further BOI mortgage increase on my loan, to date ive recieved one phone call saying they will deal with my suitation but no written letter from them yet......


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## Lightning (18 Dec 2011)

rubberband said:


> hi people, has anybody had an further success with bank of ireland on this issue, i mean i have written a stern letter to my bank manager saying that i just cannot pay this further BOI mortgage increase on my loan, to date ive recieved one phone call saying they will deal with my suitation but no written letter from them yet......



Why not take a complaint against BoI to the Central Bank of Ireland if they have violated the terms of your contract as the above poster has indicated.


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