AIB How is AIB calculating the interest on the 12%?

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Brendan or anyone else on here. Have you got any idea or information on how overcharged interest was previously calculated for borrowers who had been denied trackers - those outside of this 6000 cohort but who got similar redress. It might be insightful to see if simple or compound approach was used for them.
 
The only time I ever used it was Inter Cert Business Studies and the whole purpose of that exercise was to show the difference between simple and compound and why it would never be used!!!
 
Brendan, it's very obvious that AIB have only 'accepted' the FSPO ruling through gritted teeth. They continue to argue the ruling through the application of simple interest rather than compound interest while only applying interest for those of us who are no longer mortgage customers up to the date our mortgage accounts were closed. I haven't received my cheques yet but I will make a complaint to AIB when I do. I will also take up my complaint with the FSPO and the Central Bank if you think this is necessary.
 
Cheque has arrived for just under 46k. Calculated on simple interest. Have just been onto AIB and requested full details and figures of how calculated. Have told them that as far as I am concerned, they have not applied the FSPO decision and I am going back to FSPO on this which is being added to much bigger issues, case is complicated .
 
Got my cheque this morning and it looks like it is correct, based on compound interest and about €150 higher than the calculation in the calculator provided in the forum.
How could they have gotten it so wrong that for some used compound interest and others, simple interest?
 
Hi Emlyn, that doesn't sound right, if you give me your figures I can take a look ( no problem if you don't want to)
 
My cheque is for 2,792.71 Euro less than predicted amount on calculator. Letter and calculator match in terms of date of end of fixed rate and the amount of write-down.
 
Interest cheque received this morning for just under €14k (we were almost permanently on a fixed rate!), a little under €3k less than the calculator but completely explainable by removing column E on the calculator, so the calculator worked absolutely perfectly, just unfortunate that AIB took the wording of the FSPO literally rather than operationally.

The letter is explicate in that regard noting the write down is static for the calculation so it is very black and white in terms of asking the FSPO a question.

Still, it is a great day. Between interest and write down, that is over €52k, not to mention interest savings for the remainder of the mortgage. That is brilliant in anyone's language.
 
Megafan said:
just unfortunate that AIB took the wording of the FSPO literally rather than operationally.
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Hi Megafan

I just accepted AIB's calculations in Karen's case. I am double checking them with her today.

Assuming that they did use simple interest, I will be asking the the Ombudsman to clarify his decision, although it seems absolutely clear to me.

AIB told me yesterday morning that they would send me a written justification. I imagine that when they went to write it, they realised that it made no sense and now they are back talking to the Central Bank about the mess they have made.

Brendan

p.s. I am finding it a real strain to stick to the posting guideline of "no bad language" when discussing AIB!
 
October2019 said:
Hi Emlyn, that doesn't sound right, if you give me your figures I can take a look ( no problem if you don't want to)
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Hi @October2019 you're right, my calculations are wrong as they start of 1st July 2011, not 2010 and amount to €17510, cheque received was for €17677
Principal when ended €398136.36 on 22/06/2010, write down €47776.35.
Let me know what you come up with
 
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It is interesting that Accenture were involved in the work involved in closing this out. Reading the FSPO wording, in particular, the "written down" words on the interest refund, I can see why they might have run with a simple interest calculation on the surface.

Again, it comes back to the lack of engagement by the wider cohort. There is a bit of a bubble in that those engaged here can see how things could be different, but the wider cohort will read the letter, see the cheque and go hurray! And rightly so, they should go hurray, cause it is great.
 
Let's hope they applied compound interest in Karen case and simple interest in the rest of the cohort !! It would be pretty clear that AIB did not implement the FSPO findings to all others as they said they would.

Could AIB be that stupid/incompetent/sneaky ?
 
I used to think they were just incompetent but their incompetence is too convenient at times for my liking but their incompetence got us here. Had they read and understood their own contract when withdrawing trackers we wouldn't be here.
 
H Emlyn, I am getting 20,372 for the compound and 17,044 for the simple interest.
 
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