Ulster Bank Refund for Interest Overcharge on commercial mortgages May 2019

Unusual reply Red, but that is what the Central Bank of Ireland’s “Framework for Conducting Tracker Mortgage Examination” states, don’t shoot the messenger. I am bringing my friend into Adeptum Limited because the refund cheque my friend got was for over 40,000 euro. Her original contract was for a margin above prime 2 rate (somewhat like Bronte) and when she asked the bank some specific questions about same they could not supply the answers. Will keep the thread updated with any developments.
 
Metatron said:
I have read the attached refund letter you received from Ulster Bank, surely if they did something that was not allowed pursuant to “some business lending facilities”, then it is a breach of contract, plain and simple and not an overcharge event as claimed by Ulster Bank.

I also looked at the definition of what the cost of funds consists of, this included reference to a variable rate element, the 3month Euribor rate, this is an external reference rate as described by the Central Bank of Ireland Tracker Mortgage Examination document (December 2015). Therefore, would it not have been incumbent on Ulster Bank to submit these affected borrowers into the Central Bank Tracker Mortgage Examination and have all the mortgage loans affected reviewed by an independent third party (the oversight part)?
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Hi Bronte,
I am new to this forum and I know it’s an old thread. I currently have a case with the ombudsman as I believe I am entitled to a refund. I have a 2008 contract which states my rate is cost of funds plus a margin and my terms and conditions clearly state the old cost of funds definition. The commercial loan was to buy a premises for our business upon which it is secured.
UB are arguing that point 11.43 in my terms and conditions allows them change how they define cost of funds. It would be helpful if I knew if other business lending customers had the same terms and conditions but yet were refunded. I feel UB are trying to get out of refunding me. I wonder how many have they actually refunded? Any info would be greatly appreciated. UB are being very vague.
 
RedOnion said:
Yes, there were lots of these re commercial loans.

They added a 'cost of liquidity' on top of the index rate, but as part of tracker examination discovered not all contracts allowed it. Yours must have had old wording.

There's another thread on it somewhere.
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Where would I find this 'old wording'?
 
Skyball said:
Hi Bronte,
I am new to this forum and I know it’s an old thread. I currently have a case with the ombudsman as I believe I am entitled to a refund. I have a 2008 contract which states my rate is cost of funds plus a margin and my terms and conditions clearly state the old cost of funds definition. The commercial loan was to buy a premises for our business upon which it is secured.
UB are arguing that point 11.43 in my terms and conditions allows them change how they define cost of funds. It would be helpful if I knew if other business lending customers had the same terms and conditions but yet were refunded. I feel UB are trying to get out of refunding me. I wonder how many have they actually refunded? Any info would be greatly appreciated. UB are being very vague.
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Bolded bit is not in my documentation. Apologies as I never found this thread again until this week.
 
RedOnion said:
It should be in your contract.
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It says 3.75% per annum variable, Prime 4.

Then I borrowed 50K more and changed to fixed which was 4.81% per annum fixed. Four year fixed rate 3.21% with a margin of 1.6% where the line was Prime 4 the first time. I think the bank manager could literally write anything he wanted. And did !

And the bank copy they sent me has his name omitted, but he wrote on it 2 interest rates. A 2 year and a 3 year (because I had been discussing i with him what to go for). Terms and conditions were as per the original loan.

First time Cost of Funds is mentioned is in 2014.
 
Mentioned in an email in early 2014 when I was discussing about fixing again. (Apologies I forgot about this thread.) COF were 1.02%. 3 year fix was .9% and 5 year was 1.25%. Something happened and I only fixed a few months later. At 1.11% plus 1.6 for 5 years. And now it was Capital Markets Division
 
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