Fixed rate breakout

C

CaomhínB

Registered User
Messages
7
Hi all,

I am wondering what the the story is with breaking out of fixed rates. I fixed in Jan 2019 for 5years €173000 mortgage with 14 years left. I contacted my bank and requested a breakout fee at beginning of October and was quoted €3500 over the phone. I requested the breakdown for this to see what rates were applied and I received nothing. I contacted the bank again in mid Oct and requested same, got nothing. I contacted bank again in November and again requested same, again got nothing (all by phone). I lodged a complaint with the bank at beginning Dec and today I received a letter saying they are given me €75 as full and final settlement of my complaint and if they do not hear from me within 5days, they will transfer this into my account. I still have not received the breakdown of the breakout fee or have not received any explanation as to why I have not got it or what measures have been put in place to prevent other customers having the same happen them in the future. If anyone can help I m wondering is what I was quoted correct? To date I still do not have the breakout fee which they say will be sent out in a few days. Is the above, out of line from the bank?......it’s not like a bank To hand over money! I also find it odd that they give you 7/8 days from once breakout fee is quoted - but they don’t supply full breakdown figures. Any advice/help appreciated.
 
Call them up and tell them that they are legally obliged to comply with the Central Bank Consumer Protection Code.

Quote them point 4.25 which clearly states they must provide you with a worked example.

4.25 Where a regulated entity: a) offers credit on a fixed interest rate to a personal consumer; or b) offers a personal consumer the option to fix their rate or to switch to a fixed rate, on an existing credit agreement; the regulated entity must provide, in the credit documentation, a worked example specific to the personal consumer of the early redemption charge in monetary terms and details in relation to the calculation of this charge
Click to expand...

Tell them failure to comply with result in a complaint to the Financial Services Ombudsman.
 
NoRegretsCoyote said:
Call them up and tell them that they are legally obliged to comply with the Central Bank Consumer Protection Code.

Quote them point 4.25 which clearly states they must provide you with a worked example.



Tell them failure to comply with result in a complaint to the Financial Services Ombudsman.
Click to expand...
Thanks for the info NoRegretsCoyote. It’s great to have the exact code and point 4.25 to be able to reference them to. I would never have known what code or point to quote without your help. Thanks again
 
Hi there,

Wrong legislation.

The CPC section above refers to pre contract information (ie before you fixed). They're fully compliant with this, so your complaint would be rejected quickly.

They're in breach of the Mortgage Credit Directive.

They should have sent you a letter. They didn't. You complained. They gave you 75 as an apology.

Request another break fee. Complain again if they don't send a letter. Get another 75.
If enough people do it they'll sort out their process and start sending letters on time!

I haven't recalculated your break fee, but I see others have. It looks reasonable.

Red.
 
RedOnion said:
Hi there,

Wrong legislation.

The CPC section above refers to pre contract information (ie before you fixed). They're fully compliant with this, so your complaint would be rejected quickly.

They're in breach of the Mortgage Credit Directive.
Click to expand...

Which section of the Mortgage Credit Directive or the implementing SI? I looked, and couldn't find anything.

The Consumer Protection Code seems to apply to the cost of breaking out of a fixed rate mid-contract:

.25 Where a regulated entity......offers a personal consumer the option to.....switch to a fixed rate, on an existing credit agreement; the regulated entity must provide.....a worked example specific to the personal consumer of the early redemption charge in monetary terms and details in relation to the calculation of this charge
Click to expand...

What am I missing?
 
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