That line could be read two different ways.
AIB AIB has accepted the Ombudsman's decision and will be rolling it out to 5,900 impacted customers
- Thread starter Brendan Burgess
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That line could be read two different ways.
David_Dublin
Registered User
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I'm betting on it being later than next month. What I would like to see is advanced communication, or at least communication before end of July, as to what the settlement is, and ideally some detail/calculations behind the planned settlement.
I was thinking the same thing, but to give it more power, is there any way we could include all of our names? It would be a big undertaking for someone to compile it, but I would be happy to message whomever my name...there must be a few hundred of us on this? Power in numbers etc
Brendan Burgess
Founder
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The Central Bank has pushed to the limits of their powers.
They cannot tell the banks what to do. They can persuade and cajole.
If you are not happy with AIB, your next avenue is the Ombudsman or the High Court.
Brendan
They cannot tell the banks what to do. They can persuade and cajole.
If you are not happy with AIB, your next avenue is the Ombudsman or the High Court.
Brendan
Got a response this morning from Minister Donohoe, copy/paste
Dear
The Minister for Finance and Public Expenditure and Reform, Mr Paschal Donohoe TD, has asked me to refer to your email of 20 May 2020, in relation to your dealings with AIB.
The engagement the Minister and his officials have had with AIB has indicated that the tracker mortgage issue has been treated with the utmost seriousness by the board of AIB. For the last number of years the matter has been a standing agenda item for the monthly board meeting of the bank. At each meeting time has been set aside to discuss this matter and for the non executive directors to appropriately challenge the executive team of the bank in relation to their handling of this matter.
The bank’s approach to the tracker mortgage examination has at all times adhered to the requirements set out by the Central Bank of Ireland (CBI). In considering this matter the board has also had the benefit of input from a range of experts and have considered this matter through a broad range of stakeholder lenses.
The board's original decision for this cohort of customers, which was reached with the full agreement and support of the Central Bank, provided for compensation of €1,000 plus €615 towards independent advice. Furthermore, like all customers who were included in the Tracker Mortgage Examination, this cohort had the right to appeal the compensation to the Independent Appeals Panel or to the Financial Services & Pensions Ombudsman (FSPO).
One customer did avail of this process and appealed to the FSPO. As you are aware, in March of this year, the FSPO issued a final decision in relation to this customer who appealed, awarding a 12% write down in the capital balance of the mortgage as at the date of the roll off of the fixed rate, and the refund of the interest on the amount written-off.
This case involved a number of extremely complex issues. On considering the FSPO ruling in detail and reviewing the position of all stakeholders, the board of AIB decided to accept the finding in full. Furthermore, it decided to apply the finding to other customers within the same cohort. This was an extremely complex issue, and the appeals processes in place have evidently functioned exactly as they were designed to.
My officials contacted AIB and received the following advice:
"In early February we announced that we had made an additional provision, primarily in relation to an FSPO decision on an individual case relating to a tracker complaint which was then at a preliminary stage. This case is now concluded with the FSPO. While this case involved a number of complex issues the Bank has decided to accept the finding in full, and to apply the finding to other customers within the same cohort. Customers do not need to take any action and will receive a letter and their payments in July and August.
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."
I would encourage you to contact the dedicated helpline at the number above to request an update on your specific situation.
I trust this of assistance to you.
Yours sincerely
Dear
The Minister for Finance and Public Expenditure and Reform, Mr Paschal Donohoe TD, has asked me to refer to your email of 20 May 2020, in relation to your dealings with AIB.
The engagement the Minister and his officials have had with AIB has indicated that the tracker mortgage issue has been treated with the utmost seriousness by the board of AIB. For the last number of years the matter has been a standing agenda item for the monthly board meeting of the bank. At each meeting time has been set aside to discuss this matter and for the non executive directors to appropriately challenge the executive team of the bank in relation to their handling of this matter.
The bank’s approach to the tracker mortgage examination has at all times adhered to the requirements set out by the Central Bank of Ireland (CBI). In considering this matter the board has also had the benefit of input from a range of experts and have considered this matter through a broad range of stakeholder lenses.
The board's original decision for this cohort of customers, which was reached with the full agreement and support of the Central Bank, provided for compensation of €1,000 plus €615 towards independent advice. Furthermore, like all customers who were included in the Tracker Mortgage Examination, this cohort had the right to appeal the compensation to the Independent Appeals Panel or to the Financial Services & Pensions Ombudsman (FSPO).
One customer did avail of this process and appealed to the FSPO. As you are aware, in March of this year, the FSPO issued a final decision in relation to this customer who appealed, awarding a 12% write down in the capital balance of the mortgage as at the date of the roll off of the fixed rate, and the refund of the interest on the amount written-off.
This case involved a number of extremely complex issues. On considering the FSPO ruling in detail and reviewing the position of all stakeholders, the board of AIB decided to accept the finding in full. Furthermore, it decided to apply the finding to other customers within the same cohort. This was an extremely complex issue, and the appeals processes in place have evidently functioned exactly as they were designed to.
My officials contacted AIB and received the following advice:
"In early February we announced that we had made an additional provision, primarily in relation to an FSPO decision on an individual case relating to a tracker complaint which was then at a preliminary stage. This case is now concluded with the FSPO. While this case involved a number of complex issues the Bank has decided to accept the finding in full, and to apply the finding to other customers within the same cohort. Customers do not need to take any action and will receive a letter and their payments in July and August.
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."
I would encourage you to contact the dedicated helpline at the number above to request an update on your specific situation.
I trust this of assistance to you.
Yours sincerely
Whilst I accept what you say, to be fair, I doubt anyone in here has the resources to take the matter to the High Court. I certainly don't.
That is part of the problem.
Brendan Burgess
Founder
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Whether you go to the High Court or not , it is not appropriate to ask the Central Bank to interfere with the Ombudsman's decision.
You can certainly ask them to tell AIB to speed things up.
Brendan
You can certainly ask them to tell AIB to speed things up.
Brendan
blue_steel
Registered User
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I look forward to reading the Ombudsman's published decision. Effectively we are being compensated for being overcharged for the last 10 years. But from the moment you get this redress until your mortgage ends you will then start to be overcharged again, the cumulative effect of which will add up to a substantial amount. The only sense I can make of it is that the Ombudsman sees our cohort as having suffered a breach of contract rather than having a right to a tracker. But the breach of contract was that we did have a right to a tracker!
I don't think this is true. Using ourselves as an example, the 12% principle write down is worth 15% of our current mortgage value. The length of term of the mortgage isn't changing but we will be paying back 15% less principal so our repayments will drop by 15% every month (from a principal perspective) for the rest of the mortgage. We can't obviously be certain where interest rates will go forever, but the benefit of the decision isn't topped at what is received in the next month or two, it is over the remainder of the mortgage.
In this way, I think the Ombudsman has attempted to give a proxy for a tracker over the remainder of people's mortgages. It might not be a panacea for what everybody wanted or hoped for but it is still a hugely positive result.
blue_steel
Registered User
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I agree completely that it's a positive result.
I'm just curious as to the reasoning behind it.
Absolutely no time given to my complaint, just copy/paste and move on
I received an email from somebody from the ombudsman office saying that we would be repressed at the end of August. This is what AIB told them. But I have received absolutely nothing from AIB themselves which I think is absolutely scandalous. Also are we going to get an explanation of things etc when we do get payment and if we are not satisfied with it where do we go after that?!!
Not sure if they will provide the calculations without requesting them, I think under the CBIs framework they have too give you their calculations. If you're not happy I think you need to follow the complaints process e.g. first complain to the bank and if not happy the Appeals Panel, then the FSPO or courts.
AIB are all over the shop on this issue. On the one hand I’ve been advised by their helpline operatives that I’m part of the cohort who will receive redress, yet they keep sending me letters (concerning my complaint with them on the same issue) saying that matters are as yet unresolved. See attached. I’ll only be satisfied when I get the cheque (and calculation breakdown).
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