rustbucket
Registered User
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- 825
Letter sent to ombudsman today with final response from AIB, simple interest calculations and compound interest calculations
AIB Who has complaints at the Ombudsman stage on the simple vs. compound interest issue?
- Thread starter Brendan Burgess
- Start date
Hopefully, they are very busy with similar complaints.
Squirrelstown
Registered User
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- 31
Stage 3
rustbucket
Registered User
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- 825
We are now at stage 4. Got a call from mediation contact in ombudsman this morning. Have declined mediation as can’t see the point in relation to this issue so now being sent to on to investigation team
Brendan Burgess
Founder
- Messages
- 53,952
Key Post - Template for complaint to Ombudsman about AIB's failure to apply compound interest
AIB is now writing to people who complained about the failure to pay compound interest on the 12% mortgage write down. It is not enough to just say "They should have paid compound interest". You have to make the case. So I have drafted the attached template. It is based on the template AIB...
www.askaboutmoney.com
Stage 2
Hi Brendan, We're a little further on in the process, we have concluded Stage 4 (Mediation) and received a response that we expected.
Honestly not sure what to do next as we can't afford a high court battle. AIB know this and are confident that like us many will not proceed to the high court stage.
Could it be that this will come down to the Ombudsman and whether or not they can adjust or alter their previous ruling that allowed AIB proceed with the Simple Interest formula for calculation?
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AIB have considered your points of view and have come back to say that they are confident in their decision to apply the FSPO decision in the manner they did (extract below with a link to the full decision below that) across the cohort of customers with similar terms and conditions which includes yourselves.
https://www.fspo.ie/decisions/documents/2020-0103.pdf
They say that they are standing over their decision to apply simple interest and not compound interest and are prepared to defend this decision if you opt for formal investigation of your complaint.
The options now open to you are
· Close your complaint (with the option to re-open if new evidence comes to light)
· Withdraw your complaint in order to pursue it in a different forum e.g. court etc.
· Opt for formal Adjudication by the Ombudsman
Mediation has been an informal, verbal process whereas Investigation and Adjudication is our formal, written process. If you opt for Adjudication you will be invited to make a further submission in case you wish to add any information to your complaint form and the original submission you made to the office. However, I must remind you that anything you learnt from me or the Provider in mediation is bound by confidentiality and cannot be presented as evidence in Adjudication.
If you take up this opportunity your submission will be copied and sent to the provider for their consideration. The provider will also be asked specific questions related to your complaint. When the provider's response comes into the office - "the company file" - you will be sent a copy for your consideration. Any response from you or the provider is copied and sent to the other party for consideration. This part of the process is known as "document exchange" and it continues until both parties have finished responding to each other's submissions.
The Ombudsman then considers all the evidence, laws, codes, terms and conditions, behaviour etc. and makes a legally binding decision as to whether a provider has done something wrong or not. The Ombudsman has the option of holding an Oral Hearing during investigation where he can cross examine the parties with the power of a High Court Judge.
There are four possible outcomes to adjudication:
· Complaint upheld
· Complaint substantially upheld
· Complaint partially upheld or
· Complaint rejected
The legally binding outcome can only be appealed to the High Court and within 35 days of the final decision.
Our Investigation/Adjudication takes between 9 to 18 months from beginning to end.
The process is free of charge. If you wish, you can appoint a third party to act on your behalf (e.g. a solicitor or other financial adviser), but if you choose to do this you will be entirely responsible for discharging any professional fees incurred.
Honestly not sure what to do next as we can't afford a high court battle. AIB know this and are confident that like us many will not proceed to the high court stage.
Could it be that this will come down to the Ombudsman and whether or not they can adjust or alter their previous ruling that allowed AIB proceed with the Simple Interest formula for calculation?
---------------------------------------------
AIB have considered your points of view and have come back to say that they are confident in their decision to apply the FSPO decision in the manner they did (extract below with a link to the full decision below that) across the cohort of customers with similar terms and conditions which includes yourselves.
https://www.fspo.ie/decisions/documents/2020-0103.pdf
They say that they are standing over their decision to apply simple interest and not compound interest and are prepared to defend this decision if you opt for formal investigation of your complaint.
The options now open to you are
· Close your complaint (with the option to re-open if new evidence comes to light)
· Withdraw your complaint in order to pursue it in a different forum e.g. court etc.
· Opt for formal Adjudication by the Ombudsman
Mediation has been an informal, verbal process whereas Investigation and Adjudication is our formal, written process. If you opt for Adjudication you will be invited to make a further submission in case you wish to add any information to your complaint form and the original submission you made to the office. However, I must remind you that anything you learnt from me or the Provider in mediation is bound by confidentiality and cannot be presented as evidence in Adjudication.
If you take up this opportunity your submission will be copied and sent to the provider for their consideration. The provider will also be asked specific questions related to your complaint. When the provider's response comes into the office - "the company file" - you will be sent a copy for your consideration. Any response from you or the provider is copied and sent to the other party for consideration. This part of the process is known as "document exchange" and it continues until both parties have finished responding to each other's submissions.
The Ombudsman then considers all the evidence, laws, codes, terms and conditions, behaviour etc. and makes a legally binding decision as to whether a provider has done something wrong or not. The Ombudsman has the option of holding an Oral Hearing during investigation where he can cross examine the parties with the power of a High Court Judge.
There are four possible outcomes to adjudication:
· Complaint upheld
· Complaint substantially upheld
· Complaint partially upheld or
· Complaint rejected
The legally binding outcome can only be appealed to the High Court and within 35 days of the final decision.
Our Investigation/Adjudication takes between 9 to 18 months from beginning to end.
The process is free of charge. If you wish, you can appoint a third party to act on your behalf (e.g. a solicitor or other financial adviser), but if you choose to do this you will be entirely responsible for discharging any professional fees incurred.
KurtKasino
Registered User
- Messages
- 37
I'm at stage 4, got a letter in July confirming this but not a word since
We are at Stage 4 in this process. Recieved a response from the fspo investigation officer this morning that as we had not appealed to the independent appeals panel appointed by our provider, prior to bringing our complaint to the fspo, our complaint has been placed on hold until the outcome of the Independent Appeals Panel is provided.
rustbucket
Registered User
- Messages
- 825
We had similar and decided to abandon the appeal in the end. Presume you were part of the 300 cohort which is why you were told this by ombudsman? AIBs communication on the appeal process for this cohort was blurry at best
How long were ye awaiting a response from Ombudsman ? I sent mine in in June 2021. Still haven't heard anything.