Ombudsman rejects complaint about exit fee for fixed-rate mortgage

rameire

Registered User
Messages
440
According to the Irish Times, the Ombudsman has rejected a complaint from a mortgage holder about the €44,000 exit penalty for breaking a fixed rate.

[broken link removed]
 
Re: Fixed Mort - Taking EBS to the Regulator

Ok, I see that the Regulator didn't uphold the complaint.. he found in favour of the bank.. that is good in my opinion.. but I wouldn't necessarily disagree if politicions decided to introduce something to help people with breakage fees.. after all, the government are propping up the banks and developers, why not the small guys? But I think the Regulator has to observe contract law and if the breakage fee of 44K was as per the contract then that's fine and the Regulator has to find in favour of the bank...
 
Last edited by a moderator:
Re: Discussion: Should customers be let out of fixed rate mortgages?

yeah, saw that on the news last night.

Makes perfect sense though, contract says X. Both signed.

However, I think the Ombudsman is investigating to ensure no extra charges are being added in the total of X in other cases, but as long as there are none, I can't imagine the ombudsman ruling against the bank.
 
But I think the Ombudsman has to observe contract law and if the breakage fee of 44K was as per the contract then that's fine and the Regulator has to find in favour of the bank...

Actually the Ombudsman does not have to observe contract law.

Section 57 BK of the CBSFAI Act says

(4) The Financial Services Ombudsman is ... required to act in an informal manner and according to equity, good conscience and the substantial merits of the complaint without regard to technicality or legal form.

He has obviously formed the same opinion as many others have formed on Askaboutmoney, that these break fees are fair and appropriate.

Brendan
 
The Ombudsman also made clear that he is willing to investigate any breakage fee where there is a evidence that the amount charged is unfair, or over and above the contract.
 
Good point huskerdu

He always states that each complaint will be judged on its merits.

It would be interesting to see the actual decision in this case to see how the calculation was done.

Brendan
 
Back
Top