Original poster here, I have not seen this thread in years! I am one of the e1615 cohorts. It appears that it is because I came out of the 3% rate and fixed for 1 year to eliminate BIK. when this fixed period ended I went onto the SVR. I have the 3.2 clause in my contract. Hopefully we are all part of the 6,000 impacted customers.
AIB Aib ex staff - getting €1,650 compensation
- Thread starter Rarrrrrr
- Start date
Does anyone have a link to what this 3.2 clause looks like. I have a copy of my drawn down letter. The 3.2 clause is not obvious to me I drew down mine in Feb 06. It does state on that the staff rate is fixed at 3% which infers its a fixed rate but maybe I'm wrong. I queried all this with AIB Staff business when I was working for them. Still have the mails. Really just got fobbed off by them.
Brendan Burgess
Founder
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3.2 FURTHER FIXED INTEREST RATE OPTIONS/CHOICE
At the end of any fixed interest rate period, the Customer may choose between: (a) a further fixed interest rate period, or
(b) conversion to a variable interest rate Mortgage Loan, or
(c) conversion to a tracker interest rate Mortgage Loan,
at the Bank's then prevailing rates appropriate to the Mortgage Loan. If the Customer does not exercise this choice, then the Mortgage Loan will automatically convert to a variable interest rate Mortgage Loan.
At the end of any fixed interest rate period, the Customer may choose between: (a) a further fixed interest rate period, or
(b) conversion to a variable interest rate Mortgage Loan, or
(c) conversion to a tracker interest rate Mortgage Loan,
at the Bank's then prevailing rates appropriate to the Mortgage Loan. If the Customer does not exercise this choice, then the Mortgage Loan will automatically convert to a variable interest rate Mortgage Loan.
Mildred
Registered User
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Thank you Brendan. On my staff mortgage letter of offer it stated in Feb 2006 that it was "subject to the terms & conditions outlined and subject also to the Bank's General Terms & conditions governing lending. " As there is no reference to 3.2 in my offer letter but was the 3.2 clause relevent at this time in the terms & conditions? I requested all my paperwork but no terms & conditions were included & most documents are blackened out. I did request appeal with the ombudsman as I had applied in 2007 for all my accounts relating to my PPR to be put on tracker mortgage. Two small mortgage accounts were put on Tracker but the main account was left on staff rate even though I have the form showing I requested all the accounts relating to the PPR.
This is still with the ombudsman and in mediation - AIB are due to respond to a list of questions in the next couple of weeks so I'm guessing it will be another 6 weeks before a decision is made.
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Zorton Maverick
Registered User
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Hi All,
I want to see if anyone here is in the same boat as myself.
I was not included in the 1615 compensation pool even though i had Clause 3.2 C
When querying, I was told I wasn't included because I was one of the staff members that requested to be moved from the Staff rate to the Variable rate in the December 2008.
My argument in return was that we were advised by SB to do exactly that and it was due to the mass number of staff requesting to be moved as we were advised (due to the forthcoming BIK implications) that cause the MASS movement of everyone else to the VAR rate on 01/01/2009.
These staff that were mass moved got the €1615 compensation. ( BB edit: I don't think that this is correct?)
I exhausted dialogue withAIB last year and they eventually sent me a letter in Mar 2019 advising the matter was closed.
Do I have any come back ?
Should I go the legal route ?
Should I lodge a complaint to teh FPSO ?
Any help appreciated.
I want to see if anyone here is in the same boat as myself.
I was not included in the 1615 compensation pool even though i had Clause 3.2 C
When querying, I was told I wasn't included because I was one of the staff members that requested to be moved from the Staff rate to the Variable rate in the December 2008.
My argument in return was that we were advised by SB to do exactly that and it was due to the mass number of staff requesting to be moved as we were advised (due to the forthcoming BIK implications) that cause the MASS movement of everyone else to the VAR rate on 01/01/2009.
These staff that were mass moved got the €1615 compensation. ( BB edit: I don't think that this is correct?)
I exhausted dialogue withAIB last year and they eventually sent me a letter in Mar 2019 advising the matter was closed.
Do I have any come back ?
Should I go the legal route ?
Should I lodge a complaint to teh FPSO ?
Any help appreciated.
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Pillowcase
Registered User
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- 2
Hi
I am in a similar situation. I had a split part staff loan and part tracker and the staff loan was mass moved in January 2009 to variable rate . The option to move to tracker was not given even though I had part of the mortgage on tracker. I did not get 1615 comp. my case is now with the ombudsman and they are waiting for response from aib.
Hi,
I'm also in the same situation where the part of my mortgage which was on the 3% rate was moved to the variable rate without an option of a tracker at the time. At outset, part of our mortgage was put onto the staff rate of 3% (wasn't optional). I had contacted staff business back in 2016 but I was told that I should not have been offered the tracker rate. I wasn't aware of Clause 3.2 until yesterday but checked my documentation last night and I have this clause. My wife left employment with AIB a number of years ago so we didn't know if staff were involved with the union on this. Also we weren't in the group who were offered €1,615. Will be watching this unfold with interest!
@Mildred No-They included staff members who moved to a fixed rate for a period of time. I.e my scenario is:
Jan 2009 moved from Staff rate "en-masse". I decided to fix in April 2010 for a period of 24 months. I have been deemed impacted from 2012 when I rolled from the fixed rate and received €1615 due to this.
Jan 2009 moved from Staff rate "en-masse". I decided to fix in April 2010 for a period of 24 months. I have been deemed impacted from 2012 when I rolled from the fixed rate and received €1615 due to this.
For anybody who was on a split mortgage and wasn't offered 1650, see attached press release from staff business on the change from Fixed staff rate to Variable. This struck me as strange at the time as the terms of the contract were changing yet nothing was signed by the customers.
Also the wording stresses staff will not be at a disadvantage differs to that in the letter of offer that commits to offer staff the best rate available. I note the tracker rate offered by AIB at this time was 2.6% and falling
Also the wording stresses staff will not be at a disadvantage differs to that in the letter of offer that commits to offer staff the best rate available. I note the tracker rate offered by AIB at this time was 2.6% and falling
Attachments
The issue with staff business preferential rate is that despite the terms and conditions and the homeflex application form referring to the staff preferential as being a FIXED rate, staff business continue to argue that it isn't and therefore saying we are not impacted.
Fantastic news, Well Done.
Will this also apply to the AIB Staff who were switched by AIB Staff Business from a Staff Fixed Rate to Standard Variable without the offer of a Tracker Rate even though they had the clause in their Letter of Offer stating they were to be offered Tracker at Prevailing Rate or Standard Variable or a new Fixed Rate when coming off a Fixed Rate?
These Staff did not receive the €1600 in March 2018?
Will this also apply to the AIB Staff who were switched by AIB Staff Business from a Staff Fixed Rate to Standard Variable without the offer of a Tracker Rate even though they had the clause in their Letter of Offer stating they were to be offered Tracker at Prevailing Rate or Standard Variable or a new Fixed Rate when coming off a Fixed Rate?
These Staff did not receive the €1600 in March 2018?
Brendan Burgess
Founder
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- 53,960
If they did not receive the €1,615, then I doubt that they will be regarded as in this cohort.
However, if you think that the same arguments apply, complain to the Ombudsman While this decision does not create a precedent and while the Ombudsman judges each case on its individual merits, the office tends to be consistent.
Brendan
However, if you think that the same arguments apply, complain to the Ombudsman While this decision does not create a precedent and while the Ombudsman judges each case on its individual merits, the office tends to be consistent.
Brendan
I agree 100% that the staff rate is a fixed rate as it refers to same in the special Conditions as being a fixed rate .
Where we have clause 3.2 in our Letter of Offer stating we are entitled to be offered a tracker why was this not actioned when the end masse move happened in 2009!
We should have been offered a Tracker...AIB Staff Business need to admit they had a service failure with their Staff Mortgages!!
Hi Emily just wondered if you had heard anything more about aib accepting that the 3% was stated as a fixed rate. I don't know whether i should go further about it or just wait and see. I was moved to a variable rate from the staff rate and also had the 3.2 clause in my contract. Thanks
Hi,
I am currently awaiting a final response from Staff Business but have heard they are still saying the Staff Rate is a " Static Variable Annuity " rather than a Staff Preferential Fixed Rate as described in our Special Conditions. No where in our letter of offers is the word static used!
I will certainly be taking my case to the Ombudsman if they don't accept we were on a fixed rate!
Have you logged a complaint regarding your mortgage?
The more of us that do the better . There was a service failing and we were denied a Tracker Rate. I feel we need to stand our ground on this occasion !
Hi Emily, I received the usual response that the rate was variable and not fixed. Its very frustration especially when it states clearly that it is fixed. There are so many others in this position and your right we really need to stand our ground. I will be contacting staff business again today regarding this as I'm not letting it go.
I wonder if staff business could advise if any of our mortgages are included in this or are they still sticking to what they had originally said about the rate.
Hi Emma,
Staff Business appear to be sticking their heels in on this one as they think we won't take it further . I am not letting this go either this time.
The Ombudsman has always ruled in favour of the customer where there is any ambiguity in the wording of contracts.
Our contracts describe the staff rate as a fixed staff preferential rate and yet they are saying it's a static rate(this word is no where in our letter of offers) .It is so frustrating is right .If enough of us push this now we have a better chance of them realising we are not stupid and not giving up!..Karen had to stand her ground for the decision now to happen .I'm sure she felt like us at the start of this whole Tracker Saga!