KBC KBC told brokers" all fixed rate loans will roll onto trackers on expiry"

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Hi all
In regards to an update as you may be aware I have submitted a very detailed report on my investigation into KBC and their behaviour in relation to their customers and the tracker issues. There is now a large bank of evidence with the Central Bank to assist them with their investigation and if KBC do not address the issues contained in my report, as part of their investigation the Central Bank will revert for further information from the lender as their investigation will have been incomplete. This is all I can say at present and I know its frustrating waiting on KBC's response. The report contained 106 pages of information to fully inform the Central Bank from the customers point of view of what occurred. If anyone has any direct queries contact us on info@padraickissane.ie Regards Padraic
 
Contacted KBC today, told that this 'review' will be concluded in 'due course', not @ September 30 as first indicated.
This crowd seem to be treating the Central Bank with contempt, and no regulation is applicable to them
 
I got a 5 year fixed rate from kbc in may 2008. In the contract it states that upon expiry I will switch to the prevailing variable rate. There was no mention of a svr.
Could the prevailing variable rate be considered a tracker, considering the flyer and the rollover promise to a tracker?

It was iib homeloans that advertised the flyer in 2006 and we got our mortgage from iib in 2008, do I have a case?

My mortgage has been considered as part of the mortgage review with kbc, I wonder have I any hope of tracker?
 
DamC82 said:
Contacted KBC today, told that this 'review' will be concluded in 'due course', not @ September 30 as first indicated.
This crowd seem to be treating the Central Bank with contempt, and no regulation is applicable to them
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I wouldn't expect a person at the end of a phone line would give out any pertinent information regarding this issue.

They will follow a process and whether we like it or not, its the only game in town.

However going on how the CB has acted since the new governor took over, its certainly more in favour of fairness to the consumer than when the previous governor was there.
 
I spoke to KBC five days about about this. They said they are on target to be completed by the Central Bank's deadline. However, then then have to submit their findings to the Central Bank and ask them how they would like the bank to contact 'successful' customers. She suggested that the will write in the next short while to explain this and that the results would be in quite soon after that. I think it's entirely wrote to speculate that KBC are treating the Central Bank with 'contempt'. They have completed a huge amount of work on analysing all the accounts in this review (I don't know what number that is) and they are following protocol. I agree they are giving nothing away on the phone. In fact, it's all highly secretive and even bank staff have been told not to leak anything under any circumstance. Probably not that much longer to wait now.... I'm guessing mid-October.
 
Flurry of responses on thread in last few days lets hope KBC follow suit :) padraigs mail suggested bit more going back and forward to be done before final/true figure arrived at . I for one cannot understand the perceived complexity , for instance i fixed in 07 for 5 years , all cases in or around my own should have the same outcome , not as if the switching documentation or original mortgage contract wording was changing every few weeks , lets say they identified ten seperate use cases/scenarios ... They group all the mortgages together in ten piles and apply the same ruling , or am i simplifying it ?!
 
Exactly and there should be transparency so people can see in which pile/category their contract would belong.

Aib is similar

There are old conditions and new conditions.
 
grock1982 said:
I got a 5 year fixed rate from kbc in may 2008. In the contract it states that upon expiry I will switch to the prevailing variable rate. There was no mention of a svr.
Could the prevailing variable rate be considered a tracker, considering the flyer and the rollover promise to a tracker?

It was iib homeloans that advertised the flyer in 2006 and we got our mortgage from iib in 2008, do I have a case?

My mortgage has been considered as part of the mortgage review with kbc, I wonder have I any hope of tracker?
Click to expand...

I checked my t+c last night and the wording in relation to the expiry of the fixed rate is as follows;
"Your loan will revert to iib homeloans renewal rate. The iib homeloans renewal rate is a variable rate and may be varied by the lender from time to time in line with general market conditions"

How does this wording sound to people in the context of everything being discussed on this forum?
 
I know nothing about kbc

But I do know a tracker is a variable rate so nothing there to preclude you
 
A tracker is a variable rate in the sense that it varies according to the ECB rate and not the bank. It will always be stated in mortgage contracts as a "Tracker Rate".

A "Variable Rate" is variable by the bank.

They are not the same thing.
 
grock1982 said:
How does this wording sound to people in the context of everything being discussed on this forum?
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Looks pretty clear-cut to me that you had no contractual right to roll-over to a tracker at the end of your fixed term.

A tracker rate cannot be "varied by the lender from time to time in line with general market conditions" - it can only be varied when the underlying reference rate changes.
 
Wardy7 said:
A tracker is a variable rate in the sense that it varies according to the ECB rate and not the bank. It will always be stated in mortgage contracts as a "Tracker Rate".

A "Variable Rate" is variable by the bank.

They are not the same thing.
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I think you are describing the Standard Variable Rate.

Note the capitals.
 
Nope!

See Sarenco's post also!

I have a Tracker Rate so I know what it is thanks!

????????
 
Sarenco said:
Looks pretty clear-cut to me that you had no contractual right to roll-over to a tracker at the end of your fixed term.

A tracker rate cannot be "varied by the lender from time to time in line with general market conditions" - it can only be varied when the underlying reference rate changes.
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Thanks for that, I wonder why they bothered to include me in the review at all then.
 
mister32 said:
I think you are describing the Standard Variable Rate.
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No, that describes a loan product where the rate may be varied at the discretion of the lender.

In contrast, with a tracker rate the lender has no discretion - the rate simply tracks changes in the external reference rate, plus the agreed margin.

If there is no reference to an external reference rate (e.g. ECB refi rate) or an agreed margin, the rate cannot be a tracker.
 
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