Surely that can't be right? My calculation was that this redress would amount to around 80% of the value of being put on a tracker at ECB +1.5% (provided AIB's variable rates stay as close to this tracker rate as they currently are). Will vary between accounts I suppose but your estimation seems very low.But, by all estimates, especially when you take into account that they are still not restoring the tracker, this offer ranges from one-third to less than a quarter of the overall cost to (in my case anyway) of not having been put on a tracker in the first place.
I have received just over 22K in a balance reduction, and expect approx 10K in interest repayment. However, if I had been on a tracker of ECB +1.5% all along, making the same repayments AIB took from me (consider them forced over-payments), my balance today would be 50K lower. And that lower balance would be on a tracker for the remaining term. Assuming rates remain unchanged for the remainder of the term (unlikely, but all we have to go on), I will pay 60K more interest on the new balance at SVR, than I would at the -50K balance on a tracker.Surely that can't be right? My calculation was that this redress would amount to around 80% of the value of being put on a tracker at ECB +1.5% (provided AIB's variable rates stay as close to this tracker rate as they currently are). Will vary between accounts I suppose but your estimation seems very low.
Did you have the 1.5% in your documents? That would be the golden ticket for you if you had.I have received just over 22K in a balance reduction, and expect approx 10K in interest repayment. However, if I had been on a tracker of ECB +1.5% all along, making the same repayments AIB took from me (consider them forced over-payments), my balance today would be 50K lower. And that lower balance would be on a tracker for the remaining term. Assuming rates remain unchanged for the remainder of the term (unlikely, but all we have to go on), I will pay 60K more interest on the new balance at SVR, than I would at the -50K balance on a tracker.
Never underestimate the power of compound interest!
@Brendan. Are you in contact with those taking the high court case. I am reluctant (but haven't ruled it out!) to go on my own due to costs etc. It is good that you think we will likely be able to continue to pursue this case. Am definitely happy to escalate to the Ombudsman - still waiting on the final response from the BDO.
Am definitely happy to escalate to the Ombudsman
have received just over 22K in a balance reduction, and expect approx 10K in interest repayment. However, if I had been on a tracker of ECB +1.5% all along, making the same repayments AIB took from me (consider them forced over-payments), my balance today would be 50K lower. And that lower balance would be on a tracker for the remaining term. Assuming rates remain unchanged for the remainder of the term (unlikely, but all we have to go on), I will pay 60K more interest on the new balance at SVR, than I would at the -50K balance on a tracker.
Do you think I should go straight to the high court route? I would have thought it would would be better to have exhausted all avenues (even if the outcome is unlikely to be favourable) before going to the high court. I am not familiar with the specifics of the case you brought previously, but mine might be slightly different in that I had a split mortgage, i.e. one portion of the mortgage was, and still is on ECB + 0.75% while the other was portion was fixed. Therefore, I was thinking it would be worthwhile to at least try to make my case with him. Obviously, due to your experience, you have far better insights with regards the ombudsman than me, so certainly appreciate your input.Don't waste your time with the Ombudsman. He has already ruled on this. You are wasting your time, and his time which could be better used on other cases.
Brendan
But you are forgetting that the tracker example should still include the repayments of 154K (because I, and everybody else were forced to make those "over-payments"). Thus, you would have been charged even less interest, as those over-payments are reducing the capital, and have an even smaller balance.Tracker at 1.5% = total repayments of 121K and a balance of 213K today.
An average variable rate at 3.5% = total repayments of 154K and a balance of 229K today.
Therefore before this redress you'd be better off on the tracker by a total of 51K.
OK, now I'm very confused! And is why I probably do need to take the time while waiting for the letter to decide on the course of action. My understanding was that the escalation path was AIB -> Appeals Panel/BDO -> Ombudsman -> High Court. (with the option of skipping and going straight to the High Court)You have a choice - The Ombudsman or the High Court.
If you go to the Ombudsman and lose, you can't have a second bite at the cherry and go to the High Court.
So the Ombudsman is going to rule against you. So your only choice is to go to the High Court.
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