# AIB opened a new mortgage account for me without my knowing



## CelbridgeRoss (21 Jul 2020)

I took out my mortgage in 2008 and in 2011 I changed from paying monthly to fortnightly because i couldnt afford the monthly payments. To me, it was just changing the repayment amount however, it appears that AIB closed the first account and opened a new one. Now they are saying that any redress will only affect the closed account and not this new account number from 2011-present. 
What are my options?


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## Brendan Burgess (21 Jul 2020)

Did you get the €1,615? 

Have you been notified that you are in the cohort? 

If so, all you can do is wait until you get the letter and then challenge it.

It strikes me as odd that they closed one account and opened another for just the payment frequency? 

Are you sure nothing else happened? For example, was it a joint account switched into your name only ? Or vice versa? 

Did you borrow more or less money in the second account?

I would imagine that you would have had to sign a lot of paperwork to close one mortgage account and take out another.  


If it's as you describe it, the Ombudsman would be very likely to treat it as one account.

Brendan


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## peemac (21 Jul 2020)

Assuming you are entitled to the redress, would it have any real / substantial difference? 

If they give you 12% of the 2011 balance and the small amount of interest on the overpayment for 2010 & 2011, it probably would not be far off the sum of 12% of the current balance and interest on the over payment since 2011.


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## CelbridgeRoss (22 Jul 2020)

Ya i got the 1615 cheque. I dont recall at the time signing a load of documents - certainly no solicitor involved. Nothing else changed. Term date and loan amount stayed the same. Just purely a change in repayment. They said the reason it was closed was because the original loan account could not process 'fortnightly' payments - it was an SNL (Broker) account - not sure what that is, its just a note i took at the time when i rang them. I got a letter dated April 1st (no joke!) stating 'We completed a review of customer mortgage accounts with regard to tracker rates. While your account was not identified as impacted by the review, if you are considering selling or in financial difficulties, it is important that you contact us...' - this letter was in relation to my current (2011-present) account. 
When i rang them, they said that the 1615 cheque was because of the 2008-2011 account. I've rung twice, first time, April 1st, they said 'any Tracker issues will be reflected in my current account' (which was great) but i rang again yesterday and the person said it wouldnt. Hence the reason I'm posting here.


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## RedOnion (22 Jul 2020)

I've never worked for AIB.

Sometimes for specific operational reasons, a bank might change a mortgage into a new account number. However, when it comes to redress unless there is a new contract, both accounts are treated as one. The account number does not reflect a contract.

It sounds like maybe you would have had a new contract if the total repayment amount you were making changed? I don't understand the piece that you couldn't afford monthly repayment but could afford fortnightly, so maybe I've misread this?


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## CelbridgeRoss (22 Jul 2020)

Well i just wanted to pay fortnightly as it reduces the interest payable


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## RedOnion (22 Jul 2020)

CelbridgeRoss said:


> Well i just wanted to pay fortnightly as it reduces the interest payable


It only reduces interest if you shorten the term.

You need to do a DSAR request and find out if you signed a new contract. If not, the change in account number was purely operational, and shouldn't have any bearing on the redress. 
Even if you did, it should probably still be treated as 1 continuous contract.

Comments based solely on the facts presented.


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## Brendan Burgess (22 Jul 2020)

OK, so if they just assigned you a new account number, they should pay you the interest on the write down right up to the present time.

If they don't, it will be due to an oversight. And if you ring them , they should agree to fix it.

So just wait until you hear from them.

Brendan


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## CelbridgeRoss (23 Jul 2020)

Thanks folks - appreciate the help and info


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## CelbridgeRoss (16 Nov 2020)

Hi folks, my case review has been complete and AIB have refunded my 12% balance as of 2011. However they refunded it into my Mortgage reducing my repayments. Now I'm not giving out but i would have preferred if they would have sent me a cheque instead of lodging it 'for me'. They say its part of the Ombudsman findings. Surely as its my money, they should send me the cheque and not force me into reviewing my mortgage repayments?
They are sending me a cheque for the interest on the 12% amount alright. 
Any advice - is it possible to get the refund paid directly to me and not the mortgage?


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## tnegun (16 Nov 2020)

That was the FSPOs ruling 12% capital write down plus the interest in cash.


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## CelbridgeRoss (16 Nov 2020)

Ok so the 12% capital write down _*must *_be paid into the mortgage? Thanks tnegun


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## Brendan Burgess (16 Nov 2020)

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						AIB - Can I take cash instead of the 12% write down?
					

Can the Central Bank therefore do something about this as it seems an unfair result not getting the cash but rather the bank decides to writ it off the mortgage balance? I’m I correct in using the 12% as a fixed rate of the balance when the fixed term finished or are there other rates and also...



					www.askaboutmoney.com


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