AIB We have won the Prevailing Rate issue

Brendan Burgess said:
Statement released by AIB this morning.

AIB GROUP PLC – TRACKER MORTGAGE PROVISION UPDATE

AIB Group plc (“AIB”)advises that following a preliminary decision issued by the Financial Services and
Pensions Ombudsman, the Board understands that redress may be due to a previously identified group of
customers who had an option of a prevailing tracker rate.

The Board recognises that there is a range of possible outcomes and has created a provision of €300 million
which will be taken in full year 2019 financial results.

The Board also recognises it is in the interests of the
Group, our customers and our other stakeholders to bring this matter to a resolution and discussions are
ongoing with the Central Bank of Ireland with regard to potential appropriate treatment of this group of
customers.


-ENDS-
4 FEBRUARY 2020
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Hi Brendan,

In March 2009 my brother and I took out our mortgages with AIB. Initially the rate was variable, In March and July 2010 we fixed both mortgages for 2 and 3 each years respectively. We each received a chq from the AIB in March 18 of €1650. My question is are we included in this compensation package.

Thanks for all your help with this.
 
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Brendan, any idea if this will cover the staff mortgages too? Those moved from staff mortgage to SVR without option for tracker. They also received the €1650 fob off re prevailing rate.
 
Hi Brendan,

We were one of those AIB customers who came off a fixed rate in 2009/2010 and weren't offered a tracker rate as we should have been. We were included in the initial AIB redress scheme with a minor amount of compensation. We lodged an appeal and were sent a load of documentation by AIB to fill in but we found the forms quite difficult and onerous to fill in so we just left it. We do feel though that the initial compensation wasn't satisfactory.

Do you think we are included in this new announcement and does it matter that we never fully went through the appeal process?

Thanks a million
 
Hi Brendan, thank you for all your hard work on this issue. In particular with the templates and guidance which were invaluable.
Part of me still afraid of a sneaky appeal or something by the Bank to wriggle out of the situation.
 
The complaint submitted was about the interpretation of the clause 3.2

It is a preliminary decision which means that nothing definite can be said.

But if AIB decides to apply it to all customers with Clause 3.2 , then you should be both ok. It should not matter if you are staff. It definitely would not matter that you submitted an appeal.

Brendan
 
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trillium said:
Part of me still afraid of a sneaky appeal or something by the Bank to wriggle out of the situation.
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It is possible. AIB has a right to make further submissions to the Ombudsman. AIB has a right to challenge any decision in the High Court.

While this has not been ruled out, I interpret the following to mean that they intend applying the preliminary decision to all affected customers.

" The Board also recognises it is in the interests of the Group, our customers and our other stakeholders to bring this matter to a resolution and discussions are ongoing with the Central Bank of Ireland with regard to potential appropriate treatment of this group of customers. "
 
When are AIB next in front of the oireachtas committee? that should be interesting to say the least
 
This is awesome, thanks a mill Brendan, and everyone else that was involved.

We recently used a lump sum to pay off some of our now SVR mortgage, which had been 2 Yr fixed. We would not have done this if we had been on a tracker. If the outcome of this is that they move mortgages that got the €1615 to the current low tracker (ECB + .25% or whatever it is), then we might be looking to reverse the decision to pay down the SVR to nearly zero.
 
Congratulations, well done everyone for sticking at it. It just shows how non independent their appeals panel are. And why did the central bank side with AIB and not push this cohort with the banks, and others including AIB.

And does it annoy anyone else when banks say this has cost us €xxx million , instead of them saying. We overcharged our customers and are returning €Y million to them, as well as giving them €Z million in compensation/redress. The cost to us €A million and if we had accepted the complaints the first day the cost to us would have reduced by €B million.
 
Brendan Burgess said:
It is possible. AIB has a right to make further submissions to the Ombudsman. AIB has a right to challenge any decision in the High Court.

While this has not been ruled out, I interpret the following to mean that they intend applying the preliminary decision to all affected customers.

" The Board also recognises it is in the interests of the Group, our customers and our other stakeholders to bring this matter to a resolution and discussions are ongoing with the Central Bank of Ireland with regard to potential appropriate treatment of this group of customers. "
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So Brendan this is an initial decision and i think on the radio you said that AIB had a few more days to appeal this decision. Lets say they dont appeal the initial decision will the ombudsman then make a final decision maybe at the end of this week ? Will you be able to tell us when the final decision is made so we can start the clock on a possible appeal by AIB within the 30 day time frame after the final decision ?
 
Well done on your hard effort.Do you think those who did not contact AIB to appeal after the cheque in March 2018 was issued will be included?
 
Thank you so Much Brendan,
We would never have followed up on our appeal only for your amazing guidance,
thank you again, fantastic result, you should be very proud.
 
Hi cool

There are a few possible scenarios

Scenario A

1) AIB makes a submission on the preliminary decision of the Ombudsman.
2) The borrower will be given an opportunity to respond. I would guess that we would respond immediately saying that we have nothing further to add.
3) The Ombudsman will have to consider AIB's submission
4) The Ombudsman will then make a final decision.
5) I have no idea how long that will take.
6) After he issues his final decision, the borrower and the bank have 35 days to go to the High Court.

coolaboola12 said:
Will you be able to tell us when the final decision is made so we can start the clock on a possible appeal by AIB within the 30 day time frame after the final decision ?
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You have no role in this. If you get your own Ombudsman's decision, you can appeal it to the High Court.

Scenario B

1) AIB accepts the preliminary decision and does not make further submissions and does not appeal it to the High Court.
2) AIB offers a deal to all affected customers based on the Ombudsman's Preliminary Decision. (This would need Central Bank approval)
3) Each customer would have the option of accepting the deal offered or rejecting it and appealing it to the Ombudsman or High Court.

I think that some version of B is most likely.

Brendan
 
As has been said before on this thread Brendan, well done.

Such brilliant work on your part, all we can do now is wait. Thanks again.
 
Fantastic news and well done Brendan and all involved. The mood music from the Bank indicates that some version of Scenario B above is likely, as Brendan suggests.
 
Well done Brendan you have been fantastic everystep of the way and our voice on this issue. Didn't AIB sate to the finance committee that if the Ombudsman found in favor of any of the Prevailing Rate cohort they would apply his decission to all such cases? Or do I remember it incorrectly.
 
Brendan Burgess said:
Statement released by AIB this morning.

AIB GROUP PLC – TRACKER MORTGAGE PROVISION UPDATE

AIB Group plc (“AIB”)advises that following a preliminary decision issued by the Financial Services and
Pensions Ombudsman, the Board understands that redress may be due to a previously identified group of
customers who had an option of a prevailing tracker rate.

The Board recognises that there is a range of possible outcomes and has created a provision of €300 million
which will be taken in full year 2019 financial results.

The Board also recognises it is in the interests of the
Group, our customers and our other stakeholders to bring this matter to a resolution and discussions are
ongoing with the Central Bank of Ireland with regard to potential appropriate treatment of this group of
customers.


-ENDS-
4 FEBRUARY 2020
Click to expand...

Well done Brendan,

Does anyone know the exact dates The terms and conditions that apply to this cohort were offered by AIB
 
Hi Brendan,

I appealed AIB's stance to the independent panel using your brilliant templates and it was rejected last November, hadn't appealed this to the FSPO as of yet.

I took a case to the FSPO back in 2012 about not getting a tracker rate back then after fixed ended in 2011, FSPO found in my favour circa 2012, but said that bank could use its commercial descretion to set "prevailing rate", AIB said rate was circa 6%, which I refuted back to FSPO but they said case was closed.

Does the above prohibit me in any way from what the FSPO has preliminary found today?

Thanks
 
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