AIB AIB has accepted the Ombudsman's decision and will be rolling it out to 5,900 impacted customers

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Feel the need to say well done and thank you Brendan for all work done on this.

In alot of the tracker mortgage cases alot of people have gotten life changing amounts of money and adjustments to their mortgages and in most cases totally unaware that there was an issue in the first place. The efforts of a few have benefited thousands again and again.

For those who think that the result is not good enough, they will have extra money in a few months and the opportunity if they wished to take a further case to the ombundsman or courts. I would think those that go down that road will be in the minority again.
 


Hi Peemac

Thanks for your calculations.

So if we had to summarise your figures, how does this compare if instead people had tracker reinstated and were given the same compensation package as last time? Broadly the same you feel?

You state "The result is that the deal is the equivalent to a tracker rate of about 1.8%. If you had been getting the higher TRS relief, then its about 1.65%.".
But last time round there was additional compensation and refund of overpayment paid out also right? Or does you calculation factor that in?
 
I am happy with this outcome as to be honest i was dubious about our case to begin with , yes they should have offered a tracker but i do agree that it would have been at a very high rate - i presume thats why the ombudsman is not putting us back on trackers now

It was a breach of contract and a service failure and i am happy with the outcome

Thanks a million Brendan for all your hard work
 
I didn't take compensation into account. But the calculation comparison did take overpayment into account. But considering that the case was not as cut and dried as the primary tracker cases, I think most people will be very happy with this.

Many won't even realise they are getting this, so they'll be delirious.

It's about 80% in favor of the customer and you have the freedom to switch without loss.
 
Hi all,

I showed this to my friend who has no understanding of Mortgages nor have I.

He asked me why we are assuming that the wording (at the Bank's then prevailing rates appropriate to the Mortgage Loan) refers to point C


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.

Remember...The bank made up the prevailing rate....
 
Hi Tdress

You don't need to understand mortgages for that question.

"at the Bank's then prevailing rates" actually applies to all three categories a) b) & c)

But I don't see the relevance of that?

Brendan
 

A great win and a great achievement after a long struggle....I am still convinced the prevailing rate did exist and AIB maintained it publicly by way of their press releases but the ombudsman did not go so far as to say what the prevailing rate was....what he did do was provide a solution that will benefit 6000 families and this was a great result.... thanks again Brendan
 
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I know some people are disappointed that we are not being put on trackers (as am I) but really this is far and above what I thought we would get after the Senior Councils opinion in 2018.

I'm not sure everyone realises what this lump sum off you mortgage will do to the profile of it if you keep your monthly repayments at there existing levels.

For instance if I keep mine the same I will knock close to 4 years off the duration of the mortgage and save €14,500 in interest payments.

This is a good calculator to work out your savings

Overpayment Calculator - Manage My Mortgage - Bank of Ireland

We offer you the flexibility to overpay your mortgage. Use our overpayment calculator to see what savings you could make.
personalbanking.bankofireland.com
 
Yes Brendan, a long litany of "non-concessions". Indeed, I liken AIB to the Darth Vadar of banking in Ireland. They have been at the centre of every banking scandal going back 35 years to the DIRT episode and each time they carry on as normal. To my mind, their brand value is zero. If they were on fire, I would hand them a can of petrol!

To some extent AIB have a partial victory in that they did not restore the trackers so, the last line of defence now is the CBI and whether they insist on restoration of trackers as part of the redress scheme.
 
Hi. I'm new to this site but have been following the story. I received the 1600 cheque back in March 2018. Thank you Brendan and others for all your hard work on this as it will truly make a difference to our lives. We got our our mortgage in Oct 08. We went variable till 2010 and then went fixed till 2012. I'm just wondering would our redress be from 2010 when we finished the variable or 2012 when we came off fixed? Again I really appreciate everyones efforts on this matter.
Many thanks..
 
Got another BDO your appeal is receiving attention letter this morning, I recognized the envelope so was hopeful it might have some news but was sent last Thursday so nothing new.
 
Brendan Burgess said:
AIB broke their contract with you in 2012, so that is the date.

Brendan
Click to expand...
On that Brendan. Great to see something happening finally, much appreciation to you and the likes of Michael Mc Garth and Pierce Doherty for flying the flag. This contract bit that I have alway felt aggrieved with. In any other commercial contract, both parties agree to a set of terms, and it becomes legally binding on the day of signing. ( not 10 years later where one party decides to pick and choose bits for themselves). Whether AIB like it or not, these contracts stated we should get a tracker at the end of the variable. They have tried pawning us off with the “prevailing rate” card, (and there was none when the fixed ended to measure against). One thing is clear and is on the record. On the day we signed contracts, AIB were signing standard trackers with other people, and we should, in my opinion, be offered whatever rate they are on now, as we signed up on the same day. It’s not about what’s available at the end,its what was agreed on signing. Am I wildly wrong here? Are banking contracts different somehow?
 

I don't know how they could be.

For AIB customers, the remedy surely is refunding the money, compensation and offering the tracker.

I suspect that perhaps the finding not to recommend that the tracker be offered may be a way of buying off an appeal or a further fight by AIB.

As far as I'm concerned, I would be happy to recieve the refund plus interest and the option to pursue the tracker separate and distinct.

The novel issue for me is that
A) I had to move as a result of the mortgage payments. Whether I can prove that and whether I would be entitled to further compensation as a result is another thing.
B) I'm no longer with AIB. I'm locked into a fixed for 2 years with Ulster Bank. How will that work if I am to be offered a tracker? Will they pay the penalty to release me from the fixed? Will the option be there in 2 years to take the tracker?
 
Can I ask if you had interest only over different stages of your duration, will this effect your payment from AIB? I came off a fixed mortgage in 2009, and I think I had interest only in 2011
but if he wasn't offered the tracker in 2010 should this not be applied to this date? I had a year of interest only during my duration and I wondering will this effect my pay out too?
 
BradyJ2018 said:
Can I ask if you had interest only over different stages of your duration, will this effect your payment from AIB? I came off a fixed mortgage in 2009, and I think I had interest only in 2011
Click to expand...

Not sure as the nature of the redress is different from the Central Bank scheme.

I think that the amounts will be the same.

But AIB might take the view that you are in arrears, and so apply the cash to reduce the mortgage balance. But I doubt it.

Brendan
 
The Central Bank had a redress scheme which involved giving people trackers from the date they should have got them, calculating the difference in interest charged, and paying 15% compensation for distress.

The Ombudsman did not use that approach and awarded Karen 12% of the mortgage balance on the day she should have been offered a tracker rate and the interest on that.

So they are very different indeed.

Brendan
 
Hi All, we received the cheque of €1,615 and are happy with the ombudsman decision. We drew down our mortgage is 2008 and fixed for 3 years. In 2009 we paid to come off the fixed rate to variable. I am just wondering will the 12% calculation be calculated from 2009 or 2011 when it was supposed to finish if we hadn’t broke out. Also do you think we might get the breakage cost refunded? Thanks
 
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