AIB Should BIK be included in the interest refund?
- Thread starter PP_ITB
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Brendan Burgess
Founder
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Can you explain what you mean?
These mortgages were at non-staff rates , so there were no implications for BIK?
Are you referring to TRS by any chance?
Brendan
These mortgages were at non-staff rates , so there were no implications for BIK?
Are you referring to TRS by any chance?
Brendan
Brendan Burgess
Founder
- Messages
- 52,045
OK, I will see if I can follow your argument.
1) You were on a fixed rate.
2) When it ended, they didn't offer you a tracker
3) They must now give you a write down of 12% - say €10,000
4) They must refund you the interest charged on the €10,000
5) for two of those years, the interest rate charged was 3% Staff Preferential Rate
6) But in addition to the SPR you had to pay BIK of say 0.5%
To fix this, they should refund you 12% of the BIK you paid for those two years.
Is it a material figure?
How much was the write down?
The interest rate was 3%
How much was the BIK as a percentage?
Brendan
1) You were on a fixed rate.
2) When it ended, they didn't offer you a tracker
3) They must now give you a write down of 12% - say €10,000
4) They must refund you the interest charged on the €10,000
5) for two of those years, the interest rate charged was 3% Staff Preferential Rate
6) But in addition to the SPR you had to pay BIK of say 0.5%
To fix this, they should refund you 12% of the BIK you paid for those two years.
Is it a material figure?
How much was the write down?
The interest rate was 3%
How much was the BIK as a percentage?
Brendan
Hi Brendan
yes thats right I have and the difference between the refund I got yesterday and with BIK included would only be about €300 alot smaller thant I thought and so probably wouldn't be worth the fight. Also probably dificult to figure out the amount
Thanks
Paddy
yes thats right I have and the difference between the refund I got yesterday and with BIK included would only be about €300 alot smaller thant I thought and so probably wouldn't be worth the fight. Also probably dificult to figure out the amount
Thanks
Paddy
Hi Paddy,
I raised the BIK query when I first got my letter, was advised it was being escalated as I was the first to raise it??
In any event I followed up a number of times & was assured it would be covered in the letters issuing in August (sadly no mention of it)
Staff Business switched accounts between SVR to the preferential rate (without written consent) when it was more beneficial for the staff member, but this practice ceased in & around 2012. (Thereafter you needed to request to switch in writing/email)
The Government also amended the BIK rate around this time.
I will be requesting copy statements & clear breakdown of calculations.
Might be no harm to ring the Helpline & also raise it.
Thanks
Hi,
I am in the same boat on this. Came off the fixed rate July 2012 and went straight on to the staff rate of 3% until July 2016. So, paid BIK monthly for 3 years. Went onto the SVR in July 2016. I got my cheque yesterday (thank you Brendan for all your hard work!) and it is the exact amount as per the simple interest calculation based on being on a rate of 3% for the 3 years, no additional refund for BIK paid. I plan on ringing helpline today to ask that question and request a breakdown of figures. I got the generic breakdown letter, no detail of interest calculation or mention of BIK paid.
I am in the same boat on this. Came off the fixed rate July 2012 and went straight on to the staff rate of 3% until July 2016. So, paid BIK monthly for 3 years. Went onto the SVR in July 2016. I got my cheque yesterday (thank you Brendan for all your hard work!) and it is the exact amount as per the simple interest calculation based on being on a rate of 3% for the 3 years, no additional refund for BIK paid. I plan on ringing helpline today to ask that question and request a breakdown of figures. I got the generic breakdown letter, no detail of interest calculation or mention of BIK paid.
It's definitely worth pursuing. I'm ex staff and when it was announced in April that AIB had accepted the FSPO, I phoned the helpline to make sure I was included and I was told yes. I then asked about the BIK being refunded and they just said to me that no amounts had been decided and to wait for the letter. Anyway the BIK rate was set by the budget each year so even if the variable rate reduced during the year, the BIK rate was fixed for the year and didn't reflect in any change in the variable rate. You might think for 300 euro it's not worth pursuing but I will be out of principle.
I got my cheque today. It's for approx €1800 less than I was expecting. I got just over €22,000 refunded to my mortgage a/c and came off the fixed rate in Feb 2012. I've phoned AIB FSPO Mortgage Review Team and was told that they have not included BIK in any of the refunds. They literally applied the FSPO decision to whatever interest rate you were on as in 3% Staff Rate. I've raised a complaint and have requested the breakdown of the calculations which they used. I will wait to see what AIB come back with.
RiverRock01
Registered User
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- 2
Hi, I'm in the same boat too, cheque is less than I had calculated but thought I had missed something somewhere, but from reading here I see its due to simple interest and not compound. I was also wondering about the BIK for being on the staff rate of 3%. Will be getting onto the helpline to see whats happening here and request the breakdown of calculations.
Hi has anyone pursued AIB in the date they are using to calculate the interest?
It seems that AIB is not recognizing that most staff had a fixed rate, they've now decided to call it a static annuity variable loan. When most staff moved off the staff rate en masse in January 09 due to BIK increases this date is not recognized as staff weren't on a true 3% fixed account it was a 3% static rate.
I have a previous complaint with the Ombundsman, the Ombudsman notes in the outline of my complaint that I was on a 3% fixed but i don't know if there's any point in pursuing this and having my interest recalculated ???
It seems that AIB is not recognizing that most staff had a fixed rate, they've now decided to call it a static annuity variable loan. When most staff moved off the staff rate en masse in January 09 due to BIK increases this date is not recognized as staff weren't on a true 3% fixed account it was a 3% static rate.
I have a previous complaint with the Ombundsman, the Ombudsman notes in the outline of my complaint that I was on a 3% fixed but i don't know if there's any point in pursuing this and having my interest recalculated ???
I am ex staff and received the 12% refund off my staff mortgage in July. I received a lot less than I expected in the 4% refund of interest at the end of August so I requested a breakdown of the calculations that AIB used. I noted that AIB had not refunded the BIK which I paid over at least 4 years of the mortgage. I made a complaint and today I recieved the final letter. AIB are not refunding the BIK. According to them they have applied the FSPO ruling as instructed. AIB state "We decided to apply the FSPO decision to other customers with similar terms and conditions and circumstances, as further compensation for the failure that occurred. The FSPO did not instruct us to retrospectively apply a lower rate to the account and therefore there is no refund of benefit in kind due." Next step full complaint to the FSPO.