# How is the compensation calculated?



## katnia (30 Jul 2015)

Got offer today. 325k mortgage taken out in 2007.fixed until Aug 2009,  broke out to variable rate in Jan 2009. New rate 1.15% from 4.5%
Refund = 36k
Compo = 5.5k
Also,17k has been taken off mortgage balance.


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## Brendan Burgess (30 Jul 2015)

katnia said:


> Refund = 36k
> Compo = 5.5k
> Also,17k has been taken off mortgage balance.



36 + 17 = 53k

Compo = 5.5k 

So it looks like 10% of the overcharge.

Brendan


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## Brendan Burgess (31 Jul 2015)

*Update *

This is what they appear to be doing: 

1) They calculate the interest overcharged. 
2)  On top of the overcharge, they are automatically giving you compensation of around 10% of the overcharge. 
3) They are giving you an additional €400 towards professional advice. 

*You should sign the forms immediately telling them to pay this to the account you wish it to be paid to. *

*This does not in any way stop you appealing the level of overcharge or compensation.*

The overcharge will be used to reduce your balance to what it would have been, had they not overcharged you. Then they will refund you the difference.   If you are in arrears, the arrears will be cleared first. 

* An example of how the overcharge and refund is calculated*


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## damien (31 Jul 2015)

Brendan Burgess said:


> 36 + 17 = 53k
> 
> Compo = 5.5k
> 
> ...


hello brendan
my situation is almost identical to katnia's above. the timeline + interest rates and amount borrowed.
except unfortunetly i was unable to keep up full payments due to work dramatically changing so i fell in to
arrears and have since entered a split mortgage.

my question is will my redress amount be similar to katnias except obviously used to pay arrears first?
or will my underpayments affect redress?.

sorry if this is obvious im not a financial wizard

many thanks


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## Brendan Burgess (31 Jul 2015)

This post is not about redress, it's about the compensation, and nothing else.


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## working mom (31 Jul 2015)

Brendan Burgess said:


> This post is not about redress, it's about the compensation, and nothing else.



Received this this morning ...sickened is an understatement .  I have gone from a SVR of 4.5% to ECB+ tracker margin of 3.25% despite my ESIS with a margin of 1.1%

[broken link removed][broken link removed]


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