AIB AIB has accepted the Ombudsman's decision and will be rolling it out to 5,900 impacted customers
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Brendan Burgess
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Brendan Burgess
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This paper tiger managed to persuade AIB to admit a service failure on 5,907 accounts. This opened up the Ombudsman avenue to them. Without this paper tiger , no one would have got anything.
Even with the Ombudsman upholding Karen's complaint, I doubt if AIB would be rolling it out to everyone else, had the Central Bank not encouraged them to do so.
Brendan
I was referring to *this issue*. They are saying they will effectively do nothing.
Am I incorrect?
Not doubting it just wondering when did this happen? I know this was requested at the finance committee by either Michael McGrath or Pearse Doherty. AIB committed to there but I wasn't aware that the Central Bank had requested it too.
Brendan Burgess
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To the best of my recollection the Central Bank has made it known to all the lenders that where the Ombudsman or High Court upholds a cohort issue it is to be applied to all those affected.
When the Ombudsman upholds a systemic issue or recurring issue in any area, he refers it to the Central Bank.
Brendan
Brendan Burgess
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*this issue* started back in about 2015.
The Central Bank has pushed to the limits of their powers on this issue.
We don't know if they are still pushing behind the scenes. They conduct their supervisory work in secret under the Central Bank Act so we never know.
But AIB refused point blank to engage with me or anyone else on this issue. They insisted that they had done nothing wrong. They insisted that no one had lost out.
And then suddenly in late 2017 they announced that they were writing to everyone and opening up the appeals system to them.
There are two possibilities here
1) AIB had a sudden change of heart on their own initiative
2) They were persuaded to do so by the Central Bank.
I suspect that 2) is what happened.
But maybe they are a paper tiger, and we are just lucky that AIB gave everyone €1,615 out of the goodness of their heart.
Brendan
Just a quick question for Brendan. Would it make sense to look at the 12% write down as cash you will save monthly over the rest of your mortgage more so than looking at what you do or don't get in July/August, in that your monthly repayments will fall by upwards of 15% to 20% principal plus equivalent interest reductions every month?
This seems like the genius of the FSPO decision for people over the remainder of their mortgages in pushing the judgement so far. If we (personal) could even divert €150 per month as mortgage savings to a saving account over the next 12/14 years, we are well on the way to covering college fees.
We, like a lot of people, are luckily part of this cohort by accident more so than design and haven't lost sight of that and still wont count chickens.
This seems like the genius of the FSPO decision for people over the remainder of their mortgages in pushing the judgement so far. If we (personal) could even divert €150 per month as mortgage savings to a saving account over the next 12/14 years, we are well on the way to covering college fees.
We, like a lot of people, are luckily part of this cohort by accident more so than design and haven't lost sight of that and still wont count chickens.
Brendan Burgess
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You could look at it that way.
But in other cases, people got a large refund of overcharged interest and got put on a tracker.
So they saw their repayments "doubly" reduced.
Brendan
Well I suppose anything is possible until we know for sure.
Full tracker redress seems very generous, what with the write downs and the refunds and the compensation. Not necessarily for those who fight for it but for those who never knew until it turned up. Definitely life changing for sure.
Brendan Burgess
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I don't see any new information in it.
The FAQ has stopped working again.
Brendan
The FAQ has stopped working again.
Brendan
aibredress
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AIB website
Prevailing Rate issue
In early February we announced that we had made an additional provision, primarily in relation to an FSPO decision on an individual complaint relating to a tracker complaint, which was then at a preliminary stage. This complaint is now concluded with the FSPO. While this complaint involved a number of complex issues, the Bank has decided to accept the decision in full, and to apply the decision to other customers within the same cohort. Customers do not need to take any action.
We are currently reviewing each account individually and calculating the balance adjustment and interest payment required in each case. This relates to reducing a mortgage account balance by 12% from the date the fixed rate period in question ended, refunding by cheque interest charged on that 12% capital amount during the intervening period and adjusting the repayments going forward given the capital reduction. Where accounts are closed the adjustment will be made by a cheque payment.
Once we have reviewed all accounts in the cohort and determined the relevant payments we will write to each Customer. Customers will receive a letter and their payment in July and August following the capital reduction being made.
Our priority is to put things right for our customers who have been affected. If customers have any queries, they can call our dedicated Helpline on 1800 235 460 (or +353 1 7715888) between 8am and 7pm, Monday to Friday.
Prevailing Rate issue
In early February we announced that we had made an additional provision, primarily in relation to an FSPO decision on an individual complaint relating to a tracker complaint, which was then at a preliminary stage. This complaint is now concluded with the FSPO. While this complaint involved a number of complex issues, the Bank has decided to accept the decision in full, and to apply the decision to other customers within the same cohort. Customers do not need to take any action.
We are currently reviewing each account individually and calculating the balance adjustment and interest payment required in each case. This relates to reducing a mortgage account balance by 12% from the date the fixed rate period in question ended, refunding by cheque interest charged on that 12% capital amount during the intervening period and adjusting the repayments going forward given the capital reduction. Where accounts are closed the adjustment will be made by a cheque payment.
Once we have reviewed all accounts in the cohort and determined the relevant payments we will write to each Customer. Customers will receive a letter and their payment in July and August following the capital reduction being made.
Our priority is to put things right for our customers who have been affected. If customers have any queries, they can call our dedicated Helpline on 1800 235 460 (or +353 1 7715888) between 8am and 7pm, Monday to Friday.
Wow! Thanks for the update.
Thanks a million for update @aibredress and @Megafan , I hadn't seen this yet today.
Thanks for the update.
It was suggested on this forum that perhaps we could all contribute to one case being taken to try and force AIB to provide a tracker mortgage.
I'm not sure if a separate thread is required, but in any event, I would be prepared to contribute a suggested amount of €1000 to that action.
Would anyone else be interested?
It was suggested on this forum that perhaps we could all contribute to one case being taken to try and force AIB to provide a tracker mortgage.
I'm not sure if a separate thread is required, but in any event, I would be prepared to contribute a suggested amount of €1000 to that action.
Would anyone else be interested?
I would say definitely. It was written in a very consolatory/reassuring tone by AIB so I'd say it went through a few drafts before arriving at the final version.
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