# AIB has refunded the overcharge into my account!



## doglvr (26 Oct 2016)

I have seven mortgages with AIB all went on fixed from tracker at the same time and put on variable at end of fixed term. I requested AIB to review in March. The three smallest mortgages were put back on tracker in August at ecb plus .95%. The other four mortgages are still being investigated. 


On Monday I noticed a debit and credit transaction going through each of the three tracker mortgages....ie on one account with mortgage of 40k there was a credit if 11k and then a debit of 4k. I rang aib and they said that the 11k represents what they overcharged and the 7k they debited reflected interest portion and I would receive a cheque for this in November. The balance of 4k was a capital overpayment. I would suggest that AIB customers who have been put back on tracker should check their mortgage accounts as I am sure I am not the only one this has happened to. At least it may give you an indication of overpayment. Best of luck.


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## danika05 (28 Oct 2016)

> "I rang aib and they said that the 11k represents what they overcharged and the 7k they debited reflected interest portion and I would receive a cheque for this in November. The balance of 4k was a capital overpayment. I would suggest that AIB customers who have been put back on tracker should check their mortgage accounts as I am sure I am not the only one this has happened to. At least it may give you an indication of overpayment. Best of luck.



Doglvr, I'm can't say I understand the specific calculations etc of this whole situation, but if they overcharged you by 11k, why only 7k refund? (I'm sure I'm showing my terrible ignorance of how this all works!)


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## doglvr (31 Oct 2016)

Danika05....to be honest was so surprised by transactions didn't probe enough into the specifics. My understanding is though....total overpayment is 11k.....this is being refunded to me by sending a cheque payable to me of 7k and remaining 4k is credited off mortgage account. Think 7k relates to interest overpayment and 4k overpayment of capital.
They said would receive breakdown letter in November with all details. Will share as soon as I receive


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## PadKiss (31 Oct 2016)

Hi Doglvr:
The process for correcting the account will include some of the interest you have been overcharged being used to reduce the capital balance. I have stated in meetings that this is an flawed approach but AIB are insisting this is what will occur. I did point out that more expensive debts could still be outstanding and should be cleared first but as it stands this is the position. The reasoning is that this approach will restore the account to the position it would have been in had the error not occurred, in short you would have paid more off your capital balance had you been on a lower interest rate. This process will not apply to interest only loans, of course and all the interest will be refunded with interest only accounts. I know it is complicated but I will be giving a more detailed understanding at the public meeting for all affected customers of AIB and I hope to confirm a date for same this week
Padraic


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## doglvr (31 Oct 2016)

Padraic....thank you for your comprehensive explanation. Much appreciated.


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## rameire (1 Nov 2016)

there should be two transactions and it should be clear,
a credit for the interest overcharged, which reduces the mortgage balance
and
a debit for the capital overpaid, which increases the mortgage balance.
the total overpaid capital should be refunded to the customer, assuming no arrears are on the mortgage, and the interest credit should not be used to reduce the capital refund due.

the above puts the account into the position it should have been in if everything had run correctly.


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## lollipop67 (4 Nov 2016)

Does anyone know yet what kind of 'compensation' as referred to in their earlier letters, AIB are offering ??


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## lollipop67 (4 Nov 2016)

I've just checked my mortgage account on line - never did this before   Credit of €16,681 and debit of €10,967.  So I guess I will be getting a cheque for that amount.  In shock.


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## FOODLOVER!! (8 Nov 2016)

lollipop67 said:


> I've just checked my mortgage account on line - never did this before   Credit of €16,681 and debit of €10,967.  So I guess I will be getting a cheque for that amount.  In shock.



I did the exact same and I think i'm getting €8,000 back has anyone got a letter back yet? I went in to the bank and the girl I spoke to also said that we get €650.00 towards legal fee's is this correct?? but i'm not sure if that's included in the €8k!!


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## lollipop67 (8 Nov 2016)

I'd say that €650 is towards independent financial advice if you chose to seek it.   I presume you don't get it if you accept what they offer. I'm still curious about potential compensation ????

Strange that we have no letters yet as that transaction on my mortgage account was on the 27th October.


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## FOODLOVER!! (8 Nov 2016)

lollipop67 said:


> I'd say that €650 is towards independent financial advice if you chose to seek it.   I presume you don't get it if you accept what they offer. I'm still curious about potential compensation ????
> 
> Strange that we have no letters yet as that transaction on my mortgage account was on the 27th October.


mine was done on the 24th!!! if I get the letter before you I'll let you know an exact break down... yeah I'm curious about the compensation myself!! the lady in the bank said we also get interest on the interest and the overpayment now she did say this will only be a small amount but still. here's hoping the postman arrives tomorrow with something!!


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## Brendan Burgess (8 Nov 2016)

I have set out how the interest overcharged is dealt with in this post: 

* Calculating the refund when a tracker is restored*


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## peteb (10 Nov 2016)

OP notwithstanding as they are probably rented properties, those with residential mortgages need to be aware they effectively overclaimed TRS and may have some obligation to the Revenue in relation to it.


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## PadKiss (10 Nov 2016)

There is no obligation on any customers of an overstated position in relation to Revenue, it is the responsibility of the bank who caused the error to resolve this matter directly. Padraic


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