Pepper now charging former ptsb customers 6.5%

NoRegretsCoyote said:
Serious question: if Pepper decided to charge customers 15% interest tomorrow would there be anything to stop them?
Click to expand...
To my knowledge, most or all variable rate loan agreements (with the obvious exception of trackers) place absolutely no restrictions on when and by how much the lender can change the interest rate payable. As I mentioned before, I helped someone to take a case against BOI to the Ombudsman about 10 years ago that this constituted an unfair contract in breach of the relevant EU law but, unfortunately, they rejected it.
 
NoRegretsCoyote said:
Serious question: if Pepper decided to charge customers 15% interest tomorrow would there be anything to stop them?
Click to expand...
No!!!
ClubMan said:
What do you mean by "fees"?
Click to expand...
The pepper agent mentioned fees when we questioned her why the new monthly payment was so high and I still to this day have no idea.Both my husband and I were on the call and we both heard her say it so that is why I requested a full and thorough breakdown,something similar to an amortisation table.I am still waiting so I an get a professional to look at it.She mentioned by paying the full amount it would be considered an new loan.To be honest it was a horrible experience and I'm still not over it,dramatic I know!!
 
ClubMan said:
Why not?
While it's unlikely that any lender would charge, say, 15% right now, I'm not aware of anything to stop them (other than fixed rate and tracker loan agreements).
www.oireachtas.ie

Mortgage Interest Rates

Mortgage Interest Rates Dáil Éireann Debate, Tuesday - 22 February 2022
www.oireachtas.ie
Click to expand...
When I said no I meant no there is nothing to stop them going that high or higher!My worst nightmare.
 
I have moved the discussion of the validity of a challenge to a new thread:

Could a borrower challenge mortgage rates in a variable rate contract as unfairly high?

No!!! Why not? While it's unlikely that any lender would charge, say, 15% right now, I'm not aware of anything to stop them (other than fixed rate and tracker loan agreements). https://www.oireachtas.ie/en/debates/question/2022-02-22/58/ The price lenders charge for their loans is a commercial...
www.askaboutmoney.com
 
Thanks for helping to get this hi lighted hopefully it might bring some positive outcome probably not but at same time you would imagine Pepper doesn’t like the negative feedback either
 
I suspect that Pepper won't really care that much about any negative media coverage especially since they don't seek out new customers.
 
ClubMan said:
I suspect that Pepper won't really care that much about any negative media coverage especially since they don't seek out new customers.
Click to expand...
We may take some positive out of it anyways it’s doomy and gloomy enough thinking about next month and the hike to 6.5% but my wife and I feel like we got a little win all be we know deep down they won’t care but at least they were called out and we appreciate that very much
 
My BTL mortgage is transferring to Pepper. It is an ECB tracker +3.5%. Are Pepper likely to or can Pepper charge a different rate to what was contracted with PTSB?
 
Nordkapp said:
My BTL mortgage is transferring to Pepper. It is an ECB tracker +3.5%. Are Pepper likely to or can Pepper charge a different rate to what was contracted with PTSB?
Click to expand...
Isn't that precisely the issue that's being discussed here?
I.e. yes they can and they probably will?
 
Some people can switch from Pepper:

Key Post - I managed to switch from Pepper before they increased my rate to 6.5%!

Current lender: Pepper Outstanding mortgage balance: €190000 Approximate value of your property: €400000 The date you started your fixed-rate… not fixed How many years you fixed for: N/A Your current mortgage interest rate: 4.69% Your current monthly repayment: €1500 Your property's BER: B3...
www.askaboutmoney.com
 
Last edited by a moderator:
I wrote to the Central Bank today:

I was appalled at the time when the Central Bank forced ptsb to sell perfectly good split mortgages to Pepper.


The Central Bank just completely ignored the interest of the borrowers involved.


Those customers are now paying 6.5% when they could have fixed with ptsb at 3%.


Pepper now charging former ptsb customers 6.5%

my wife rang this evening to say our interest rate is going up to 6.5 % on 17th of next month Hi King Even for Pepper this seems very high. If you have a letter to this effect, could you attach it to a post. Brendan
www.askaboutmoney.com


Many can't switch because they have or had split mortgages.


Many of them are now going to be catapulted into arrears directly as a result of the Central Bank's action.



Even Governor Honohan was aware of this problem back in 2015





However, I would make an exception. The committee will presumably be considering legislation in the near future about the mortgages that are sold to non-banks, ones that are simply harvesting those mortgages without getting involved in new business. It may be that there should be some limitation on the degree to which they could deviate from market practice. What locks the standard variable rate contract into reality is the fact that it should be the rate that is charged by the lender on new and old business, more or less keeping lenders in line with market conditions. However, if an entity is not making new business, it might not have this natural restraint.


The Central Bank really needs to take action immediately on this. You caused the problem unnecessarily. Now you should fix it.
 
Brendan Burgess said:
I wrote to the Central Bank today:

I was appalled at the time when the Central Bank forced ptsb to sell perfectly good split mortgages to Pepper.


The Central Bank just completely ignored the interest of the borrowers involved.


Those customers are now paying 6.5% when they could have fixed with ptsb at 3%.


Pepper now charging former ptsb customers 6.5%

my wife rang this evening to say our interest rate is going up to 6.5 % on 17th of next month Hi King Even for Pepper this seems very high. If you have a letter to this effect, could you attach it to a post. Brendan
www.askaboutmoney.com


Many can't switch because they have or had split mortgages.


Many of them are now going to be catapulted into arrears directly as a result of the Central Bank's action.



Even Governor Honohan was aware of this problem back in 2015





However, I would make an exception. The committee will presumably be considering legislation in the near future about the mortgages that are sold to non-banks, ones that are simply harvesting those mortgages without getting involved in new business. It may be that there should be some limitation on the degree to which they could deviate from market practice. What locks the standard variable rate contract into reality is the fact that it should be the rate that is charged by the lender on new and old business, more or less keeping lenders in line with market conditions. However, if an entity is not making new business, it might not have this natural restraint.


The Central Bank really needs to take action immediately on this. You caused the problem unnecessarily. Now you should fix it.
Click to expand...
Thanks for all your efforts Brendan my wife and I really appreciate it hopefully we are keeping our fingers crossed that something will change to aid us going forward
 
You must log in or register to reply here.
Back
Top