# Had a tracker, but was charged the wrong rate



## Open air (22 Mar 2018)

Any ideas what kind of compensation someone would be looking at, where the correct tracker rate was not applied for 4 years, and the bank issued legal proceedings against the borrower.Borrower still in house


----------



## SaySomething (23 Mar 2018)

The short answer is no idea.

The long answer is this depends on the value of the mortgage. Compensation is calculated as a percentage and in this case you'd probably be entitled to a higher percentage rate than somebody who met their mortgage repayments.

However, even on receiving compensation this is a case that absolutely should go to appeal. The initial payments are a 'one size fits all' calculation and will not factor in your personal circumstances. Accept and lodge the redress cheque when it arrives, seek legal and financial advice, and request an appeals pack immediately.


----------



## Brendan Burgess (23 Mar 2018)

As SS says, it's not possible to judge from the scant information you have given.

For example, Bank of Ireland charged around 3,000 customers a rate which was 0.1% higher than it should have been.  So on a €300k mortgage, the overcharge was €300 a year or €1,200 over 4 years.

If one of their customers was €20,000 in arrears, the overcharging made no material difference. 

I am not sure how BoI is compensating these customers. In reality, they should not get any just a refund of the overcharge, but I imagine that the Central Bank has forced them to give them a certain minimum. 

On the other hand, if your lender charged you 3% instead of 1%, on a €300k mortgage, the overcharge for 4 years would have been in the order of €24k. 

If you were in arrears of €10k before this overcharge was corrected, then it means that your arrears were  caused by the overcharge and you should certainly be seeking appropriate compensation. 

However, as they took legal action against you, I would imagine that the arrears are far higher than any overcharge. 

Brendan


----------

