AIB We have won the Prevailing Rate issue

Brendan than you so much for your help, the times you always replied and the encouragement to keep going when we were weary and exhausted from fighting.
 
My understanding is that the argument brought to the Ombudsman was that the tracker prevailing rate did exist and it was the last available tracker margin offered by AIB in addition to the ECB rate at the time. The last available AIB tracker margin offered for >80 LTV was 1.5%.....i am not sure what is was for the other LTV bands.
 
I sold my property voluntarily after having written to AIB pleading with them to ask if I was a victim of the Tracker scandal - how many people lost their PPR ?
 
@ Brendan Thank you so much. Does/Will this outcome call into question the Independent Appeals Panel Decisions? Have you heard of any appeal upheld? I hope the Central Bank finally gets their act together, put the customers first and teach AIB a lesson. Let this never happen again.
 
peemac said:
Just be careful over-estimating the money back.

1 - they will need to work out the correct or most apt margin. This will probably be the highest of the margins they had generally available. - Possibly as high as 2% and unlikely to be under 1.5%

2 - Interest rates have been very low for years (thankfully), so interest on the overpaid interest will be minimal


So assuming all goes as everyone hopes, then, as a ballpark, I would estimate that for each €100,000 of mortgage balance at Jan 2010, the refund would be about €12,000 - €13,000.

Or even easier, 12%-13% of the mortgage balance on Jan 1st 2010 add about 2,000 - 2,500 for compensation and time value money.

So ballpark, 14% - 15% of what your mortgage balance was in Jan 2010 would be the figure I'd put in my head and graduated lower by about 1.2% a year for those whose fixed rates ended in subsequent years. (2012 = circa 12% of balance etc)

This is pure guesswork based on amoritisation tables and purposely on the lowish side, using 3.75% as average svr and 2% as the tracker margin - I was fairly accurate with my estimations on KBC and Ulster, so this won't be far off. (I hope)
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Thank you. My spreadsheet tells me it's €40k+ of overcharging since April 2009. At various points they increased the SVR to as high as 4.4% when ECB was 0% and less. The LTV band at the time points to ECB+1.5%. If AIB offer anything less than that plus the interest on the overcharged amount, restoration of the tracker and compensation for their flagrant breach of contract and overcharging I will continue with the Ombudsman case. I suggest that everyone in this cohort should do the same and hold firm until they offer the appropriate amount.
 
How long will it take AIB to refund 6000 customers correctly. Are we talking years here?
 
Hi Brendan
Only for your input this wouldn’t have happened I can’t thank you enough for your guidance and determination I would have struggled corresponding to BDO / AIB thank you.
Just a question will all effected customers be entitled to the tracker rate from now 2.1 % ?
Regards Kevin
 
Kevin Daly said:
Hi Brendan
Only for your input this wouldn’t have happened I can’t thank you enough for your guidance and determination I would have struggled corresponding to BDO / AIB thank you.
Just a question will all effected customers be entitled to the tracker rate from now 2.1 % ?
Regards Kevin
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Where you getting the 2.1% from Kevin?
 
Hi Brendan,
Just listened to your podcast, really interesting.
Will people who were put in a situation where they were pushed to surrender their houses be treated in a different way do you think? If I lost my house in 2016, I have missed out on 4 years incorrect repayments (and possible compensation for same), I have no opportunity to avail of a new tracker rate now, despite asking for it as part of a solution to unaffordability years ago. Now, my credit rating has been affected and I will probably never get a mortgage again due to my age, for one thing.
Will the appeals that were sent in be looked at again, will we get a chance to put forward our positions again or will it be broad brushstrokes like the €1615 cheques?
I know you can't comment on some things but do you think there will possibly be a need for legal advice down the line?
 
ECB 0.5 % or 1% plus what AIB add I don’t know around 1.5 or 2 % approx is that the rate the 6000 customers should be on now if this redress scandal didn’t happen / these 6000 customers should automatically go on to that rate once resolved with AIB
Kevin
 
Nailligo said:
Will people who were put in a situation where they were pushed to surrender their houses be treated in a different way do you think?
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I can't answer that unfortunately.

AIB will come up with a scheme which will need the approval of the Central Bank. The Central Bank has been very conscious of those who lost ownership of their home so I would guess that they might incorporate this in some way.

Brendan
 
Kevin Daly said:
ECB 0.5 % or 1% plus what AIB add I don’t know around 1.5 or 2 % approx is that the rate the 6000 customers should be on now if this redress scandal didn’t happen / these 6000 customers should automatically go on to that rate once resolved with AIB
Kevin
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ECB is currently - 0.5% (that minus .5)
 
Where do you see your tracker defined at ECB +0.75%? Looked in my contract but not defined in part 1
 
We split our mortgage with AIB in 2007. We are on half tracker ecb +.75% half variable after fixing for 2 years up to 2009. The difference is unbelievable between interest paid and what has come off the mortgage. 45 to 50k will just about compensate
 
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