Brendan Burgess
Founder
- Messages
- 52,268
Neverever, you got great information there. Well done.
Whether you are in arrears or not, you should get the write down today of 12% of the balance as of the date your fixed rate finished.
If after, reducing your balance by this amount, you are still in arrears, it would be reasonable for AIB to use the interest refund to eliminate those arrears.
It was much easier to figure out for people being put back on their tracker. It's more difficult for this mechanism.
The principle would be to put people back in the position that they would have been in.
So, if there were no arrears, a person would owe €50k today and have €4k cash.
As the write down brings the mortgage down to just €52k,000 €2k should be used to write down the balance and €2k cash should be paid.
With heavy arrears, the entire cash should be used to reduce the balance.
I think that is the correct way to do it. But I would not be surprised if the Central Bank encouraged AIB to pay the cash to people irrespective of the arrears situation.
In the other redress cases, the 15% compensation was calculated on the interest overcharged whether people had paid it or not. This was wrong.
Furthermore, the the compensation was paid in cash irrespective of the arrears situation. That too was wrong.
Brendan
Whether you are in arrears or not, you should get the write down today of 12% of the balance as of the date your fixed rate finished.
If after, reducing your balance by this amount, you are still in arrears, it would be reasonable for AIB to use the interest refund to eliminate those arrears.
It was much easier to figure out for people being put back on their tracker. It's more difficult for this mechanism.
The principle would be to put people back in the position that they would have been in.
So, if there were no arrears, a person would owe €50k today and have €4k cash.
As the write down brings the mortgage down to just €52k,000 €2k should be used to write down the balance and €2k cash should be paid.
With heavy arrears, the entire cash should be used to reduce the balance.
I think that is the correct way to do it. But I would not be surprised if the Central Bank encouraged AIB to pay the cash to people irrespective of the arrears situation.
In the other redress cases, the 15% compensation was calculated on the interest overcharged whether people had paid it or not. This was wrong.
Furthermore, the the compensation was paid in cash irrespective of the arrears situation. That too was wrong.
Brendan