# AIB will not be paying any compensation to the Prevailing Rate cohort



## Brendan Burgess (24 Jul 2020)

It seems clear from the conversations that people have had with the Help Line and from public statements by AIB, that they have no intention of paying people compensation in addition to the redress ordered by the Ombudsman.

There won't be any Independent Appeals System. 

They have told people that if they are not happy with the 12% write down and the refund of interest on this write down, then they can complain to the Ombudsman.

In most cases, people will be happy with the redress and won't want any further compensation.

But many others will want and will deserve compensation.

1) People who went through the stress and anxiety of arrears which they could have avoided if they had been on a tracker rate.
2) People who stayed out of arrears but through making great sacrifices elsewhere.
3) People who were subject to legal proceedings for possession or pressure to agree to a voluntary sale
4) And of course, those who actually lost their home.

We will have to wait until we see the letter which accompanies the refund.

But I presume that it will be a "final response" letter so that people can go directly to the Ombudsman with their claim.

Karen, whose initial complaint to the Ombudsman is the basis for the award, did not suffer any of the issues set out in 1) to 4) above.  So the issue did not arrive.

But those of you who did suffer will have to go to the Ombudsman.

The first hurdles have been cleared in that you will not need to make the case that you should have been offered a tracker.

But you will have to make the case that the failure to have been offered the tracker was the cause of or accentuated your difficulties.

It's also possible that AIB might do the decent thing and try to settle these complaints directly with the borrower without the need to go to the Ombudsman, but that seems unlikely at this stage.

My guess is that most of them will be resolved at the Ombudsman's mediation stage.

Brendan


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## Megafan (24 Jul 2020)

Thanks Brendan

All the above makes sense and for those of us not unduly impacted by cases 1) to 4), then all of this is absolutely great and life changing news (in fairness, it is great news for everyone really).

Do you have a sense of how the existing appeals process through BDO might be wrapped up, or do you think AIB will try close that appeal process down by settling everything up under the FSPO ruling?

Discredited or not, that appeals process is probably a separate distinct process to the FSPO ruling with people having made their arguments then, which would/may be similar to any arguments that could be made post FSPO ruling, just with the added ammunition of the FSPO ruling now in everyone's back pocket.

It seems like a bit of a loose end for AIB and those who appealed to the tracker panel, specifically those whose appeal hasn't been rejected yet by the panel.

(Apologies if this is slightly off topic to the above)


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## Dan_D1 (30 Jul 2020)

Hi Brendan received a letter from BDO today which I will post below for your information and reference which is directly related to your post above. It basically states the bank informed appeals panel that the write down and return of interest which is classes as “compensation” is all they are doing, should we not be happy we have the option to complain to the bank, FSPO or the courts. The panel are seeking clarification from the central bank on the position and in the mean time should we have any queries we should contact AIB directly.


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## Brendan Burgess (30 Jul 2020)

I have dealt with this in another thread. 

This is a good approach from AIB.  Sideline the Appeals Panel which has shown itself to be not fit for purpose.

Apply to AIB for more compensation. If they refuse it, go to the Ombudsman or High Court.

Brendan


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## SadieG83 (31 Jul 2020)

Could I ask please if as a group we could go after AIB for compensation or better to on individual cases?? And if we could go as a group would people be interested in forming a group??


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## Kaycurtin (5 Aug 2020)

I would be interested to know about compensation Brendan, we kept up our payments at great personal stress, my husband is in construction so was laid off for a long time after the crash, I also had a recurrence of cancer in 2015 and I know leading up to that point we were under alot of stress, my recurrence gave me a terminal diagnosis I had been clear for 10.5 yrs before that


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