AIB Closed AIB Prevailing Rate Account. Redress received this mornng

Shay75 said:
Super news.

Was the payment in line with the calculation here?
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Yes Lump sum easy as 12% of the balance at expiry of fixed rate - Interest appears to be calculated up to closure of the account...letter gives option of complaint and comes with another booklet Questions and Answers FSPO Mortgage Review !! Happy Days !!
 
Brendan, letter and cheque received this morning. Thank you so much for your work on all this. Big moment for us.

The calculation was based on my fixed rate ending on 02/05/2009. Since then I received a negative equity trade up mortgage with AIB in early 2019 and as such my original account is closed. This was a long and stressful slog to get over the line with AIB and probably would not have been so in light of the compensation just received.

Taking this into account, are there any grounds for looking for a new interest rate on my new mortgage - tracker or breaking from current fixed rate? I will contact them and progress but your view would be helpful.

Thanks. Justin
 
Rang for figures as letter not here yet.

This is what they advised:

€21,657.99 capital reduction
€7,519.91 interest

Interest calculation is from end of fixed rate up to a/c closed (December 2019). Based on static balance of 12% capital reduction and calculated monthly with benefit of best rate throughout the month.

Hope this makes sense.
 
Is it the 1800300070 number that is providing the figures?

I have called and they have advised on this helpline that they have no access to figures.
 
JustG_Mort said:
Since then I received a negative equity trade up mortgage with AIB in early 2019 and as such my original account is closed.
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As you have traded up you had to close your account anyway. So I think that AIB has handled your account correctly, subject to recalculating the refund on a compound interest basis.

They are allowing those affected by this to break out of their fixed rate without penalty. They have not excluded people who traded up, although it would have made sense to do so. Ring and ask.

By the way, many AIB customers face no penalty for breaking out anyway, so do ask them.

Key Post - It may be much cheaper than you think to break out of a fixed rate early...

Many lenders have reduced their fixed rates Many people regret fixing at higher rates a few years ago. Many people think that because they have some time to go in their fixed rate, they cannot switch to another lender and get a lower rate or 2% cash back. However, since 2016, lenders can no...
www.askaboutmoney.com
 
Brendan Burgess said:
Anyone who switched lenders should be demanding interest up until today's date.

I will write a bit more about it later.

Brendan
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Hi Brendan,

Thank you so much for your work on this, like so many others here, we were oblivious to this.

We sold in 2015 in negative equity. We received our cheque today for the 12% plus interest. Interest amount to the day we redeemed mortgage in 2015.
My question to you is, if you dont mind advising us please; we had to sell our previous property to enable us to take out a self build mortgage. Having the two mortgages together would not have been manageable. We know now that if we had the tracker rate on our old property we would have been able to keep our older property ss an investment property or at least until it gained back some equity. The negative equity we paid was quite a large sum of money for us. Is there anything we can do to address this, can we take this to the Ombudsman?

Thank you once again.
 
Cmd1611 said:
Is it the 1800300070 number that is providing the figures?

I have called and they have advised on this helpline that they have no access to figures.
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They told me yesterday they would have access to figures if letter had been issued.
 
Cars510 said:
They told me yesterday they would have access to figures if letter had been issued.
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They didn't even request any detail from me to establish whether they could access it.
This type behaviour, along with the interest issue does nothing but encourage one to become part of any high court action.
 
Received our cheque this morning. I wish to thank Brendan for all his hard work. We very much appreciate it, thank you.
 
Got my cheque this morning too. Had closed the mortgage in December 2019 by trading up. 12% reduction amounted to €16,618, interest refund was €5,856. My fixed rate period ended on 13/10/2011.
 
Hi Brendan , thanks again for everything. It has been life changing !!
We received our cheque this morning and they only refunded the interest up to the date we switched to BOI. To take this further do we need to go to the high court ? Thanks
 
Got our cheques too. 2 separate amounts
Cap reduction €15298.82
Interest refund €4,199
And
€4860.64
€1,334.30

AIB are really the pits and their behaviour at calculating simple interest rather than compound is such a slap in the face to the Ombudsman, Brendan and all those who fought hard for what is rightfully theirs.
Thank you all for your work on this. It has changed the lives of so many for the better.
 
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