Brendan Burgess
Founder
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Prevailing Rate Customers
Prevailing Rate Customers were entitled to be offered a prevailing tracker rate at the expiry of
their fixed rate period. There are 6,523 mortgage accounts held by Prevailing Rate Customers,
broken down as follows:
1. 648 customer accounts who were previously on a tracker rate before they entered their
fixed rate periods. These accounts were admitted to the TME in February 2016 and fully
redressed and compensated in line with TME principles; and
2. 5,875 customer accounts who had a contractual entitlement to be offered a tracker rate
but never availed of it before fixing their interest rates. These accounts were admitted
to the TME following Central Bank intervention in December 2017 and initially received
flat rate compensation and an offer of a prevailing tracker rate.
The TME permitted customers to appeal their redress and compensation package to the FSPO
and/or the Courts in the event that they were not satisfied. The Central Bank required all
lenders to assess if any individual outcomes from the FSPO had the potential to impact
customers more widely, and if so to apply the outcomes of those decisions to all relevant account
holders.
In March 2020, the FSPO upheld one such individual complaint from a Prevailing Rate
Customer, who never previously availed of a tracker rate. The FSPO decision, in line with the
Central Bank’s findings, was that AIB had breached its customer’s contract, and the FSPO
directed that AIB provide certain additional compensation. Following AIB’s consideration of this
decision and further engagement with the Central Bank, the decision was applied to all 5,875
Prevailing Rate Customers’ accounts in line with the Central Bank’s expectations.
Furthermore, by February 2020, the Central Bank’s investigation had identified that a sub group
of 314 prevailing rate customer accounts, (“Early Roll off Customers”), were entitled to a
specific low rate tracker and had suffered quantifiable financial loss. Central Bank engagement
with AIB led to these customers being provided with rate rectification and full redress and
compensation in line with TME principles. See full details of Prevailing Rate Customers in table
1 below:
Prevailing Rate Customers were entitled to be offered a prevailing tracker rate at the expiry of
their fixed rate period. There are 6,523 mortgage accounts held by Prevailing Rate Customers,
broken down as follows:
1. 648 customer accounts who were previously on a tracker rate before they entered their
fixed rate periods. These accounts were admitted to the TME in February 2016 and fully
redressed and compensated in line with TME principles; and
2. 5,875 customer accounts who had a contractual entitlement to be offered a tracker rate
but never availed of it before fixing their interest rates. These accounts were admitted
to the TME following Central Bank intervention in December 2017 and initially received
flat rate compensation and an offer of a prevailing tracker rate.
The TME permitted customers to appeal their redress and compensation package to the FSPO
and/or the Courts in the event that they were not satisfied. The Central Bank required all
lenders to assess if any individual outcomes from the FSPO had the potential to impact
customers more widely, and if so to apply the outcomes of those decisions to all relevant account
holders.
In March 2020, the FSPO upheld one such individual complaint from a Prevailing Rate
Customer, who never previously availed of a tracker rate. The FSPO decision, in line with the
Central Bank’s findings, was that AIB had breached its customer’s contract, and the FSPO
directed that AIB provide certain additional compensation. Following AIB’s consideration of this
decision and further engagement with the Central Bank, the decision was applied to all 5,875
Prevailing Rate Customers’ accounts in line with the Central Bank’s expectations.
Furthermore, by February 2020, the Central Bank’s investigation had identified that a sub group
of 314 prevailing rate customer accounts, (“Early Roll off Customers”), were entitled to a
specific low rate tracker and had suffered quantifiable financial loss. Central Bank engagement
with AIB led to these customers being provided with rate rectification and full redress and
compensation in line with TME principles. See full details of Prevailing Rate Customers in table
1 below:
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