Hi all,
I received a letter from KBC, dated 28th December 2017, telling me I have been impacted by their failure and they are returning me to the tracker rate. Enclosed was also an initial cheque, which they emphasise is not the full amount they owe me but a gesture to get the process started. It's not a small cheque! A further letter will be sent before the end of January '18 after they have calculated the full amount overpaid since 2009. It will include another cheque for the final figure of overpayment & compensation and also an amount for legal advice should I feel I require it.
In the letter there will also be a direct debit mandate to be signed for the new monthly payments and a full financial breakdown of the process and their conclusions, which were overseen by Deloitte.
Cashing the cheques does not stop me from appealing the amount and from taking further action with the FSO or the courts.
KBC took my tracker rate from me in January 2009 when I requested a 12 month extension of interest only payments. I only signed under duress. I had the tracker rate of 0.95% 'for the full term of the loan' (stated in letter of offer) but they still used this opportunity to take me off it and put me on their standard variable rate of 4.5%. (Shocking - I know!) They never returned the tracker rate at the end of the 12 month period. They fought me to the FSO, who found in their favour. Some day soon, the previous FSO will have to step forward and explain why he made so many decisions which favoured the banks.
I never thought I would see this day and I'm sure this is the beginning of a similar positive result for lots of wronged KBC customers over the next weeks.
I want to remember my good friend and financial mediator Philip Shaw who initiated this process for me but didn't live to see it concluded. He died suddenly in March 2017. He would have been so thrilled to see how the tide has turned and that we can stand up to the bully tactics of huge financial institutions.
Mauritius
Hi Mauritius
That is great news as you have been proactively fighting it for some time.
KBC took my home loan tracker when extending interest only period
It's really important for people to appreciate the role of the Central Bank in this. KBC were contractually within their rights. There is no way that the High Court or the FSO would have given you back your tracker.
But although they were contractually within their rights, what they did was wrong.
From 2010 onwards, this behaviour was prohibited by the Code of Conduct on Mortgage Arrears based on a recommendation of the Expert Group on Mortgage Arrears.
Brendan
@Lightening is would be very interesting to know ow many KBC customers were forced to give up trackers for restructuring - i.e. Interest Only periods.
Congratulations Mauritius, absolutely thrilled for you. I received a letter stating much the same with a cheque and more to follow by the end of January. I lost my home so there will be no mandate in there for me obviously but I am still delighted to say the least. Very sorry to hear about your friend. Such a pity he didn't get to see the conclusion to your nightmare. I'm sure it's a very bittersweet moment for you.
I presume you received this letter same time as Mauritius just before this weekend.
If you are still without your home they will surely have to buy you a new one!
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