Stretchgoal
Registered User
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Hi
Am with BOI and have received redress letter confirming that they will pay back the money they wrongly took from me by overcharging me on interest for the last 9 years. They identify exactly what they will pay me, namely Redress, Compensation and €250 legal advice
Their definition of redress appears to be "the amount you overpaid plus interest"
The Central Bank's definition of Redress in their "Principles of Redress" document, are shown below, and certainly appear to be MORE than a simple "amount you overpaid plus interest".
search Google for "principles of redress central bank", and the PDF should be the 1st returned link. Appendix B of this document points out some very important statements concerning "REDRESS"
1. Redress and Compensation
1.1 Redress
1.1.1 “Adjusted Amount” refers to the difference between the monthly amounts that customers were charged in respect of their impacted accounts and the monthly amounts that they should have been charged had the relevant issue identified not occurred.
1.1.2 Loan balances are to be adjusted (the principal balances on impacted customer accounts to be adjusted to the correct level as if the issue giving rise to redress had not occurred and appropriate Tracker Interest Rates had been applied to the accounts from the appropriate time).
1.1.3 Impacted customers are to have the option of receiving direct payments in respect of Adjusted Amounts as opposed to Adjusted Amounts being set off against the balance of their mortgage accounts (see below for when the account is in arrears). These repayments to take into account the time value of money.
1.1.4 The adjustment of loan balances and the Adjusted Amounts to be calculated from the time that the relevant issue occurred. This may be, for example, from the time that the impacted customer should have been able to avail of a Tracker Interest Rate, was erroneously moved from a Tracker Interest Rate or did not have material information brought to their attention by the lender, with the result that the customer made an uninformed decision that led to them losing an entitlement to a Tracker Interest Rate.
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My take from this is that (1) we should get all overpaid monies (plus any time value of money) and (2) the loan balances of the mortgages must be adjusted as per 1.1.2.
I see that plenty of people are talking a lot about waiting/receiving refunds of overpaid interest, but I don't see much discussion concerning 1.1.2/adjustment of loan balances, which appears to me to another significant point in this whole mortgage redress.
Getting money back (however hard fought) is really the banks handing back what they wrongly took from us. I would think that getting the adjustment of loan balance is the punitive charge to the banks that they are also required to deliver on.
I have received my redress payment early this week, but I have not seen ANY communication from BoI about adjustment of loan balance, and from examining my online mortgage account, I don't see any change to the loan.
Am with BOI and have received redress letter confirming that they will pay back the money they wrongly took from me by overcharging me on interest for the last 9 years. They identify exactly what they will pay me, namely Redress, Compensation and €250 legal advice
Their definition of redress appears to be "the amount you overpaid plus interest"
The Central Bank's definition of Redress in their "Principles of Redress" document, are shown below, and certainly appear to be MORE than a simple "amount you overpaid plus interest".
search Google for "principles of redress central bank", and the PDF should be the 1st returned link. Appendix B of this document points out some very important statements concerning "REDRESS"
1. Redress and Compensation
1.1 Redress
1.1.1 “Adjusted Amount” refers to the difference between the monthly amounts that customers were charged in respect of their impacted accounts and the monthly amounts that they should have been charged had the relevant issue identified not occurred.
1.1.2 Loan balances are to be adjusted (the principal balances on impacted customer accounts to be adjusted to the correct level as if the issue giving rise to redress had not occurred and appropriate Tracker Interest Rates had been applied to the accounts from the appropriate time).
1.1.3 Impacted customers are to have the option of receiving direct payments in respect of Adjusted Amounts as opposed to Adjusted Amounts being set off against the balance of their mortgage accounts (see below for when the account is in arrears). These repayments to take into account the time value of money.
1.1.4 The adjustment of loan balances and the Adjusted Amounts to be calculated from the time that the relevant issue occurred. This may be, for example, from the time that the impacted customer should have been able to avail of a Tracker Interest Rate, was erroneously moved from a Tracker Interest Rate or did not have material information brought to their attention by the lender, with the result that the customer made an uninformed decision that led to them losing an entitlement to a Tracker Interest Rate.
-----------------
My take from this is that (1) we should get all overpaid monies (plus any time value of money) and (2) the loan balances of the mortgages must be adjusted as per 1.1.2.
I see that plenty of people are talking a lot about waiting/receiving refunds of overpaid interest, but I don't see much discussion concerning 1.1.2/adjustment of loan balances, which appears to me to another significant point in this whole mortgage redress.
Getting money back (however hard fought) is really the banks handing back what they wrongly took from us. I would think that getting the adjustment of loan balance is the punitive charge to the banks that they are also required to deliver on.
I have received my redress payment early this week, but I have not seen ANY communication from BoI about adjustment of loan balance, and from examining my online mortgage account, I don't see any change to the loan.