AIB We have won the Prevailing Rate issue

Good Evening,

I have a question if anyone informed could give me a steer?
I received a cheque of €1615 in March 2018 and have the section which says I should have been offered a tracker.

My question is around that I took out a mortgage in February 2009, after AIB had withdrawn tracker mortgages in 2008.

Would I be still considered part of the cohort entitled to whatever redress is decided or could AIB use the above to say that we should not?

Thanks in advance
 
LJoyce said:
Would I be still considered part of the cohort entitled to whatever redress is decided or could AIB use the above to say that we should not?
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AIB - "Does the AIB announcement on prevailing rates apply to me?"

A lot of people have asked questions about whether they are covered by yesterday's announcement. I will try to answer them systematically. Please do not ask questions about any other issue in this thread - they will just be deleted. First of all no scheme has been announced. AIB has made a...
www.askaboutmoney.com
 
Thank you Brendan. I was completely uninformed on the subject until Google directed me here.
Your hard work is very much appreciated in our household.
 
Hi Brendan

just a quick piece of information for yourself and everyone. I received a letter from AIB yesterday (but dated 31st January) offering me the opportunity to change my mortgage interest rate as there is “better value” available from them, do you think we should act on this?

Today I received a letter from BDO (4th identical letter) informing me our appeal was still under consideration by the appeals panel, our first letter informing us the appeal was still under consideration was middle of November. I know the appeals panel will work away in the background but just wanted to keep you informed.
Thanks again for all your work.
 
Does anyone know if I still have to send a letter to the ombudsman. We were given 6 months to write and image deadline is this week. Do I take it that I don’t need to anymore?
 

In my opinion you should hold off on doing anything until the dust settles.
I have received these letters about a better rate over the past few months and have been ignoring them.
The day the AIB announcement was made I actually received a response from BDO saying my appeal was unsuccessful. The only thing I have done is responed and said that I reject the appeals panel's decision.
 
Dan_D1 said:
I received a letter from AIB yesterday (but dated 31st January) offering me the opportunity to change my mortgage interest rate as there is “better value” available from them, do you think we should act on this?
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Hi Dan

I think that this is a standard letter which they must send every year telling people what interest rates are available.

Can you post the details here.

What interest rate are you on?
From reading the letter what is the best you can do?

For example, if you are on the SVR of 3.15% and your Loan to Value has reduced to < 50%, you could avail of a reduction to 2.75%.

There would be no reason not to do this.

Brendan
 
DeTrev said:
Does anyone know if I still have to send a letter to the ombudsman. We were given 6 months to write and image deadline is this week. Do I take it that I don’t need to anymore?
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The 6 months is an AIB issue. The Ombudsman pays no attention to it. You have 6 years after the date you received the €1,615 letter to complain.

So hold off until AIB makes a further announcement on the issue.

Brendan
 
Brendan Burgess said:
The 6 months is an AIB issue. The Ombudsman pays no attention to it. You have 6 years after the date you received the €1,615 letter to complain.

So hold off until AIB makes a further announcement on the issue.

Brendan
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Is there any indication on whether another announcement is imminent. I have a relative who work for AIB who is also one of the 6000 impacted and they were told that "this is going to go well for you", make of that what you will.
 
Brendan - I understood from a previous post by you that aib had a deadline about a week ago to make a formal submission re the preliminary decision.
Do you know if they made that submission?

I’m assuming if they did not then that adds further weight to the argument that aib have accepted their fate. (Although given their statement to the stock exchange I must confess I have well and truly counted all my chickens at this stage)
 
Hopefully hear something soon,the longer this drags out is only adding to the potential payouts
 
zxcvbnm said:
Brendan - I understood from a previous post by you that aib had a deadline about a week ago to make a formal submission re the preliminary decision.
Do you know if they made that submission?
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Hi z

The Ombudsman has made it crystal clear that he regards any discussion of the case before he publishes the decision to be an offence under the Act.

I have only discussed what AIB has put into the public domain.

Brendan
 
I changed to a 2 year fixed a few weeks before the decision to avail of 2.85%. I am not worried about it causing any issues with the redress as there is no way they could justify any impact becuase i chose a new rate that they offered me

It didnt say on the letter "if you accept this rate then you waive any right to tracker redress"
 
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LolaG19 said:
I am an ex employee of AIB and I would say that they’ll be paying out sooner rather than later. They won’t want to drag it out
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Me too, though 9 years ago and I agree.

The thing that might not be factored in is how much this will cost in current year as well. Their provision of €300mn is just to the end of 2019 (covering 9/10ish years) but every additional month in 2020, it will hit AIB's P&L since everyone is paying interest circa 3% presently but if/hopefully when people potentially revert to tracker rate, then there will be a re-alignment in interest income in current year also.

Plus their long term forecast hit could be a multiple of the €300mn since AIB would have "banked" on a certain level of interest income into the future that potentially now won't happen so it has serious cumulative knock on effects into the future (obviously dependant on ECB rates). I don't know why this hasn't formed part of the discourse when talking to investors. Though the focus is rightly on the number up to the end of 2019 since it is very significant as it is.

In reality I suppose, while a €30mn hit per annum possibly would seem huge, when profits head for hundreds of millions, it gets lost in the churn.
 
Brendan, and anyone else that has been fighting this fight, thank you so much for playing David against Goliath. It's clear that had you guys not stepped up and held a mirror up to these guys, nothing at all would have happened. I know there's no confirmation on a redress yet, but I'm sure they thought they were big enough that they could ignore any noise being made. I am one of those people that was none the wiser of the clause, and that I should have been offered a tracker at the end of my fixed term...mortgages and interest rates are my kryptonite, We got our mortgage early Sept 2008, just before they scrapped trackers altogether. I had to read the letter with the €1600 cheque several times to get my head around it. So thank you all so much. Very much interested to see what the coming weeks/months bring....so I can't imagine what it's like for those of you who have been watching this closely for a decade.
 
Hi Brendan,
Thanks so much for all your advice and hard work on this. Much appreciated.
We are considering moving house at the moment. We are worried that if we take out a "new mortgage" with AIB we would then potentially lose out on possibility of being moved to a tracker. Would you recommend waiting to see how all this plays out?
Thanks
 
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