This is is something I have wondered all along about the central bank. It appears to me they have been turning a blind eye to it and believe AIB when they said they acted within the legislation. Despite being queried at least twice by the minister for finance on same. Their only response was customers should open a complaint with the FSPO. Maybe I have an incorrect understanding of the role of the central bank but in my own line of work they certainly seem to have a fairly heavy hand when it comes to enforcing rules & regulations.
I've only had time this morning to listen back to the interview. After 2 years of seeing standard responses to customers, and press office responses to journalists / TDs, it's almost surreal to hear the CEO being directly quizzed on this on national radio.Adam Maguire interviewed Colin Hunt on Morning Ireland this morning to talk about Green Bonds. At the end of the interview, he asked him about the breakage fees.
I don't know about sanctions, but I personally think CBI have been lacking in their response to this topic. Part of the problem with the MCD is there are some terms without definition. When questioned on the issue, CBI said it wasn't their place to provide guidance because it was an EU harmonisation legislation so guidance should come from EBA.I wonder will the Central Bank sanction AIB for breaching these regulations?
Is that not an outright falsehood by the Cental Bank, if they had checked AIB's breakage calculations they must have known they did not comply.REPLY
The Central Bank of Ireland is the independent regulator of all regulated financial service providers and it has advised that it has checked the methodologies applied by lenders to calculate fixed rate breakage fees on mortgages subject to the European Union (Consumer Mortgage Credit Agreements) Regulations 2016 and that it has seen no evidence of material failings in this regard.
Hi BronteIs that not an outright falsehood by the Cental Bank, if they had checked AIB's breakage calculations they must have known they did not comply.
It's a bit more subtle than that. Read carefully the letter from the Central Bank to Michael McGrath TD.Is that not an outright falsehood by the Cental Bank, if they had checked AIB's breakage calculations they must have known they did not comply.
Must say though I'm not one bit surprised withe the CB getting things wrong. It took Burgess nearly three years to get them to change their calculations on mortgage rates.
I guess their actions are open to judicial review but that is not really relevant here.ripped off said:Who is the central bank accountable to?
Why on earth would AIB change their calculations if they were complying with the regulations. And why would any other bank for that matter have changed how they did their calculations.Both AIB and the Central Bank claim that the way AIB did it complied with the regulations.
Red disagrees. But it's a matter of opinion.
All the other banks including EBS do it differently, so I am in the Red corner on this one.
Hi BronteWhy on earth would AIB change their calculations if they were complying with the regulations.
I'm raging reading this.
I have about ten to fifteen letters in my file from AIB where I requested early redemption figures from them over the last number of years and they calculated crazy numbers that always outweighed any benefit of me leaving the fixed rate.
So I reluctantly stayed and just finishing the term now.
I'm pleased for the customers who recovered a refund of the difference.
If I had received legitimate calculations I would have been long gone from AIB as a customer years ago.
It appears my only option is to write a strongly worded letter to the omdudsman. Not much point.
Your case might be different, because you fixed in 2014 when interest rates (both retail and wholesale) were much higher.It appears my only option is to write a strongly worded letter to the omdudsman
By all means - How do I contact you? The "Start Conversation" function is not available on your username.Your case might be different, because you fixed in 2014 when interest rates (both retail and wholesale) were much higher.
I'd happily take a look at the calculations for you if you send me details.