Not sure if this compensation will apply to me

C

Clodagh

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Hi, am wondering if someone could help me. In early 2018 we received a cheque for €1615 from AIB. We appealed to see if we qualified for any further compensation and we were told that we didn’t qualify for anything further and this was just a good Will gesture. To be honest we just took that at its word and didn’t do any more about it. I’m thinking this latest announcement doesn’t include us but I am not sure. We were never on a tracker rate mortgage. We were on a fixed rate mortgage starting when we built our house in 2005. I suppose really I’m just secretly praying that anyone that got the €1615 compensation initially is now entitled to this further compensation but I’m guessing I wouldn’t be that lucky?? Thanks so much for any advice you may have??
 
You likely are that lucky :) the €1615 cheque was issued to all customers who had the option of a Prevailing rate tracker in their contract.
 
Really?!?!? Can’t believe it!! Has anyone received a letter yet? Should I contact them, or will they be in touch? I just presumed when I appealed it and they came back to say I wasn’t entitled to anything further that was just it. Feel so stupid now.
 
I don’t think it will include me. I’ve read the statement on AIB website and under the FAQ I clicked on how do I know if the review affected me it’s states you may have been affected if 1. You were on a tracker interest rate and then moved to a different rate or 2. You were on a tracker interest rate and your margin increased. Unfortunately neither apply to me as I never had a tracker mortgage. Ah well, was worth a try
 
Do you mean a letter recently or the original letter with compensation of €1615 in 2018? I haven’t received anything since I appealed it then and they came back to say I wasn’t entitled to anything further. Did they issue letters recently?
 
The ombudsman last feb made a decision against the bank. And that was formalised this week. Meaning they overruled AIBs view that customers whe were not entitled to anything further.

You may well not have had a tracker. But the point of this ruling is that when you left your fixed rate you should have been given the option of being put on a tracker but were not.
 
So this is a copy of the letter we originally received and I’ve also attached that section of contract....
 

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Ya. That's the standard letter we all received.

Our argument is we shoujd have been offered a tracker rate when we came off our fixed rate mortgages but were not offered it.
In that letter AIB claim that at the end of your fixed rate contract, the prevailing rate would have been 7.9% so in effect no loss to us => 1615 given as a token for technical breach of contract.

Brendan Burgess (who posted above in this thread) challenged this argument and used one individual as a test case to bring to the ombudsman.

The ombudsman has ruled that Brendan’s test case is correct and the banks statement in that letter is incorrect.

The net effect to you is your mortgage will be reduced by 12% of whatever it was back in 2010 and you will additionally receive around 4% of that amount in cash.
 
thank you so much for taking the time to help with my queries. Will I just leave contacting AIB to check eligibility so and wait to hear from them?
 
I’m sorry for another query on this. I’ve looked back and we took out our fixed rate in April 2007 for one year and then went on to variable. So we would have been on a variable rate from April 2008, am I correct in saying the tracker wasn’t withdrawn until Oct 2008 and if so we would this make us exempt from compensation if tracker was available in the April??? As above we have received the €1615 and when we appealed it was declined and this is why I didn’t take it any further as I thought the fact that our fixed rate ended in the April of 2008 we didn’t have a case? Could anyone help with this?
 
Your contract said that you would have a choice of a tracker at the end of any fixed rate period.

So you must have had a fixed rate mortgage at some stage which ended after October 2008 and they did not offer you a tracker.

If you did not have a fixed rate which ended after October 2008, then you should not have received that cheque.

The best thing to do is to look at the letter you got or just wait until July to see what they say to you.

Brendan
 
Hi, I am wondering if you could help me. We received the payment in early 2018 for compensation for not being offered a tracker mortgage at the time. We drew Down our mortgage in Dec 2008 and went on a fixed rate. Do you think we will be in this next cohort of refunds. Thank you
 
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