# What is sufficient compenations  for tracker redress?



## zxcvbnm (9 Mar 2019)

My sister and I both had a share in 2 buy to lets..

We were on interest only and could not afford to pay interest and capital when the interest only period ended. The bank then demanded we sell the properties.

We sold the properties and both ended up going insolvent due to huge shortfall on residual debt.

It turns out we were part of the tracker issue - we got compensation of €140k for one  but only €35k for the other. Both were v similar sized mortgages ad similarly valued properties.(standard apartments in Dublin city)

AT the time we didn't even know about the tracker scandal until the bank rang us up saying we are getting this money. Obviously we were delighted so did not even consider appealing.

While the letters we received from the bank outlined the breakdown, the additional compensation due to forced sale was not broken down. It was just a figure, so I've no idea why this aspect of the payout  (which was nearly all of the payout) differs so wildly (one pays out 4 times more than the other)

However - now having had time to think on it, 2 points come to mind.

1) There's a massive discrepancy in the pay out in both given that both seemed identical cases on the surface to me. I've no idea if one was overly generous - or the other was under-generous.

2) On reflection though, €35k (€17k each) compensation after being forced to sell a property which in turn contributes to insolvency doesn't seem much.

Part of the reason as to why we are reluctant to appeal is that they may turnaround and say the 140k is incorrect and revise that down significantly.

Does anyone here know as to whether we should appeal this payout? Or what kind pf payout has anyone else gotten in similar circumstances? (Feel free to PM me if you are not comfortable giving out figures here)


----------



## RedOnion (9 Mar 2019)

zxcvbnm said:


> Both were v similar sized mortgages ad similarl


Were they both BTL at all times, or was 1 possibly considered a PPR? They might have assumed it was on calculation.
Would you actually have been able to service principal payments even if it had been tracker rate?


----------



## zxcvbnm (9 Mar 2019)

RedOnion said:


> Were they both BTL at all times, or was 1 possibly considered a PPR? They might have assumed it was on calculation.
> Would you actually have been able to service principal payments even if it had been tracker rate?



They were both buy to lets. In fact - i've just looked at the letters again and part of the c. €35k compensation included exactly 25k compensation in recognition the property may not have been sold. (So in effect we got 12.5k each in compensation for forced sale of property resulting in insolvency. Hmmmm..)
But for the 140k one, aside from the usual stuff such as 15% compensation etc, it gives a different sentence re compensation whereby it states

"...compensation for our failure at 11.00% of the interest overcharged….*or an appropriate minimum amount*" (Note it doesn't explicitly state it is due to forced sale of property - unlike the letter for the other property.
So it is quite vague by stating "or an appropriate minimum".

Nonetheless, there is quite the discrepancy between the 2 properties compensation given that to me they seem identical cases.

As to whether I would have been able to service principle payments had it been tracker is difficult for me to say. They were sold 5 years ago now. And there was also 2 other properties involved which we own individually. The tracker issue was at the very least a significant contributing reason for the forced sale. (And that's before you take into account we both went insolvent)

That is why I'm enquiring as to what kind of payouts other people got. If this is the norm then presumably there is no point in us appealing. But if this is way less than everyone else in a similar scenarios then I should consider appealing.

Or does anyone know if there is an advisor out there I could consult which would have an idea as to whether this payout is acceptable?


----------



## moneymakeover (9 Mar 2019)

Padraic Kissane


----------



## SaySomething (9 Mar 2019)

zxcvbnm said:


> Part of the reason as to why we are reluctant to appeal is that they may turnaround and say the 140k is incorrect and revise that down significantly.
> 
> Does anyone here know as to whether we should appeal this payout? Or what kind pf payout has anyone else gotten in similar circumstances? (Feel free to PM me if you are not comfortable giving out figures here)



Under the terms of the tracker examination the original redress payment cannot be tampered with. The appeals panel cannot award a lesser amount than what you’ve already received. 

Appeal anyway. It’s a so called “free bite of the cherry” and you can’t receive any less. There’s nothing to lose.


----------

