AIB Aib ex staff - getting €1,650 compensation

emilybee said:
Hi,

Hi,
Just wondering if you have received any update at this point from FPSO? There appears to a few of us arguing the same case with Staff Business at this point!
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This is still in mediation with Ombudsman but should have a conclusion in the next month as final arguments have been submitted. My argument is pretty much the same as the the above.
 
I discussed this prevously with a former AIB staff member who had great knowledge of staff pref mortgages and was advised that they are for a fact classified as a fixed rate product. Getting the bank to acknowledge this or getting hard evidence of same is the problem.
 
Good to hear. Surely the ambiguity alone that exists with the wording "Staff Fixed Preferential Rate Mortgage " within the Special Conditions shows Staff Business are on a train to no where with their argument about a Variable Annuity Static Rate!
 
If individual loans/products aren't reported to the CBI, surely the bank has to report overall numbers of each mortgage rate product in order for the stats to be produced?? so it would be interesting to know what they classified staff pref mortgages as when they compile their return.
 
Thanks so much Brendan for all your hard work. I have been following this for a few years now and it's fantastic to finally have a positive resolution!!

I am a little confused on my own case. I received the 1615 in 2018 so I'm assuming I'm entitled to something back in July. The issue I have is that as an ex aib staff member my mortgage was in two parts, a staff preferential rate and a fixed rate portion which expired in 2011. The letter we received in 2018 only refers to the fixed rate mortgage but not the staff one. However I have checked my staff rate mortgage letter and it refers to the loan as being a fixed rate mortgage and also has clause 3.2!!! Does anyone know if these staff mortgages are included? The wording is ambiguous as on the first page it is a variable mortgage, then a few pages in it's a fixed mortgage and then it also has clause 3.2. Any insight would be greatly appreciated.
 
I have made many suggestions in the long thread, all of which seem to have been ignored.

  1. You should get together as a group
  2. You should get your trade union to look at this and co-ordinate a response
  3. You should talk to Padraic Kissane as a group
You are all bankers and ex-bankers. You should be able to organise yourself into a group and have a small committee that would organise a coherent campaign and put a coherent argument to the Ombudsman.

Brendan
 
This thread is very long and goes down many different routes.

One of you should do a comprehensive thread outlining the issues and identifying the different cohorts within the group.

Brendan
 
Thanks a million for the hard work Brendan
 
@Brendan - thank you for all the guidance you have provided over the years. Personally, I do not believe the FSU would get involved. Some of us approached them some years back and they advised us the issue had nothing to do with employment so they didn't have role to play.

Just an update on my situation. Nothing new.
The banks argument in regards to Staff situation going through the FPSO mediation stage is very clear (currently in the process).
They do not see the Staff rate as a "FIXED" Rate and thus the 3.2{c} clause is not valid in any circumstances for staff and should not have been part of your contract.
Staff rates are referred to as "Staff Preferential Variable Rate (SPVR)".
According to the bank - they do not see them as fixed rates because of the following reasons -

1. Fixed rates have a duration - the SPVR rate does not. It remains intact as long as you are a staff member.
2. Fixed rates remain fixed for the duration of the contract - the SPVR can be amended by the bank if they so wish at any time.
3. Fixed rates incur a financial penalty if you break the contract - the SPVR does not and can be jumped in and out of depending on current rates.
4. Fixed rates do not incur BIK Taxes. As the SPVR is seen as a benefit to staff by the revenue, you have to pay Benefit in Kind taxes.

My choices are clear now - accept the banks Position or Opt for formal Adjudication by the Ombudsman.
 
Is the scenario of AIB staff rate being a fixed rate vs variable rate closed out or is this still with the ombudsman?
 
Got the write down today on the non staff part of my mortgage but very disappointed to see no movement on the other part. Is this worth appealing?
 
Hi there, I assume the write down applies to whichever part you fixed? The write down for mine is on the original staff rate portion which I fixed. The balance of my mortgage is already on tracker rate so no adjustment required. Did you fix the 'staff portion' at any stage?
 
Rarrr the terms and conditions of the staff mortgage state that it is a fixed rate throughout the document and it also had clause 3.2. AIB is digging their heels in on the issue but the terminology in the contract is misleading. I will be appealing this for sure.
 
As far as I know the group being redressed are people who came off fixed rate, fixed rate for a fixed period of time. There is lots of discussions in a number of threads including this one about the staff 'fixed' rate. I was also on it for a short period of time.
 
Padjo2007 said:
got written down on my staff account
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This was because after they moved you from the Staff Preferential Fixed Rate, you chose a market fixed rate.

They are still stubbornly refusing to accept that the Staff Preferential Rate which has been at 3% since the 1960s is a fixed rate.

Brendan
 
That makes sense alright Brendan. Thanks again for everything
 
I can’t understand how it can say fixed rate in a contract, discuss breakage costs fees for a fixed rate in the terms and conditions and then they made the decision to move us off this fixed rate as it was in better for staff, and then as we did nothing to move onto fixed rates in 2010-2012 ( the €1650 scenario) we are at a disadvantage.
 
I am going to appeal on the staff portion of my mortgage and the fact it has not been included for any redress despite the the contract clearly describing the loan as fixed and also that it includes clause 3.2. Is it better to do this through AIB as a starting point?
 
I wonder how many staff are in the same boat? I think I read somewhere that BOI had something similar and the tracker was restored.
 
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