AIB "My first fixed rate expired after December 2013"

Brendan Burgess

Brendan Burgess

Founder
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I have not come across one of these cases but they probably exist and there is a complication.

As I have said in another thread :

So you have to meet all of the qualifying criteria
1) You had Clause 3.2 in your contract
2) You were on a fixed rate which expired after October 2008
3) They did not offer you a tracker rate

AIB claims that they reintroduced the prevailing rate at ECB +3.75% in December 2013 but didn't offer it to people.

So if your fixed rate expired after December 2013, AIB could claim that they had a prevailing rate and could redress you at that rate.

If you had multiple fixed rate periods, this does not apply to you
Let's say you drew down the mortgage in 2008 and fixed for two years until 2010.

Then you fixed for 5 years to 2015.

AIB's failure was in 2010 and you will get the full redress.

Brendan
 
Hi Brendan we took out our mortgage in January 2008 and fixed for 5 years so didn't come off it until January 2013. We got the €1615 cheque in 2018. Do you think this redress scheme will apply to us even if we came off fixed rate then?
Our mortgage was 305k and I'm just guessing that the balance was about 280k when we came off fixed. We sold our house in November 2017 so no longer have the mortgage

Thanks for your help!
 
Hi Brendan,

First off well done to you and all involved in this case.

We took out a top up mortgage in October 2008 of €45k. In 2011 we fixed for 3 years and came of this rate of 3.89% in March 2014.

In March 2018 we received the €1615 (2 cheques of €807.50 - mortgage is in Joint names so a cheque each)
At the time we didn't know why we were getting the cheques so we lodged them and carried on as normal.
Earlier this year i heard that AIB has set aside the 300m. When i looked into it further and read the forums i couldn't believe it.
I think we may be included in this cohort. We have clause 3.2 in our T&C, we were on a fixed rate after 2008 and we received the €1615.
You mentioned above that someone coming off a fixed rate after December 2013 - AIB may redress at a different rate.
Whatever we get - if we do get something - will be a bonus for us as we didn't even know this was going on.

Thank you so much to you and all involved again.
 
Milmoo said:
we fixed for 3 years and came of this rate of 3.89% in March 2014.
Click to expand...

Hi Milmoo

Let me explain first what ptsb did. They had the same wording as AIB. But whereas AIB stupidly stopped offering people trackers, ptsb offered people a tracker but at a rate much higher than the SVR. There was a cohort who were not offered trackers when they should have been, but ptsb said "That is fine, we had a prevailing rate of ECB +3.5%" and they worked out the redress based on that.

AIB claims that they had a prevailing rate in December 2103 and it was 3.75%. So they might give you the ptsb line. "We should have offered you this rate and we will now do a calculation of redress based on this. Guess what! you would have paid more if you were on a tracker, so you have not lost out."

I am speculating here. AIB might just make it simple and treat everyone the same. But they could well do as I have suggested above.

Brendan
 
Hi Brendan
So if AIB do as you have suggested and take the ptsb line - then we would be untitled to nothing - am I right in saying that??
 
Oh well what will be will be
If we get something - super -if not we are not any worse off.
Thanks again
 
Hi Brendan
My mortgage fits in on your initial paragraph re 'My first fixed rate expired after Dec 2013'
Drawdown May 2007 (3.2 clause)
Change to fixed rate March 2010 (split mortgage into 2 accounts: account A 2 year fixed and account B 5 year fixed)
Account A is impacted with the €1615 but not Account B

Would appreciate your thoughts re Account B?
 
Okay, great thanks for that. I will hold out and see what happens.
Thanks for all your advices on threads. It has been a great help to me
 
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