Will submitting complaint to Financial Ombudsman re brekage fees have any neg. effect

Paulk

Frequent Poster
Messages
107
Hi All,

I've filled out the Financial Ombudsman's complaint form re the high financial penalty for breaking out of my fixed rate mortgage.

I'm just wondering whether anyone thinks the submission could have any negative effect...will I be flagged by the bank etc?

Also, in relation to the outcome of the complaints submitted to the Financial Ombudsman, which were discussed in the media some months ago, as expected, the Ombudsman cannot comment on individual cases.
 

Brendan Burgess

Founder
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39,559
Re: Will submitting complaint to Financial Ombudsman re brekage fees have any neg. ef

Hi Paul

I don't think so. It certainly won't go to the Irish Credit Bureau or anything like that.

They will have a copy of the complaint on file in the bank. I have never heard of a bank "victimising" a customer because of a complaint to the Ombudsman.

I suppose if you wanted to enter into a long term contract with them again and then complained because they would not change the terms and conditions, they might be less enthusiastic about doing business with you.
 

Paulk

Frequent Poster
Messages
107
Re: Will submitting complaint to Financial Ombudsman re brekage fees have any neg. ef

Thanks for your reply Brendan.

I'm also curious to know whether anybody else submitted a complaint to the Ombudsman re fixed rate breakage costs? A significant number of people, on this forum, have expressed their frustration with being locked into fixed rate mortgages, but has anyone actually taken any action to extricate oneself?
 

jhegarty

Frequent Poster
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2,911
Re: Will submitting complaint to Financial Ombudsman re brekage fees have any neg. ef

I think unless the fixed rate was miss-sold in some way you don't have hope.
 

plant43

Frequent Poster
Messages
387
Re: Will submitting complaint to Financial Ombudsman re brekage fees have any neg. ef

Thanks for your reply Brendan.

I'm also curious to know whether anybody else submitted a complaint to the Ombudsman re fixed rate breakage costs? A significant number of people, on this forum, have expressed their frustration with being locked into fixed rate mortgages, but has anyone actually taken any action to extricate oneself?
Unless the bank is mis-calculating the breakage costs you probably won't get anywhere. There was a case recently where someone who was being charged 44,000 euro to break out of a fixed rate. He brought a case to the Ombudsman and the Ombudsman said that so long as the bank weren't breaking the contract (they weren't), then there was nothing he could do.
 

mtk

Frequent Poster
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491
Re: Will submitting complaint to Financial Ombudsman re brekage fees have any neg. ef

if rates had gone up would you still be complaining. I doubt it. Fixing has a risk to it and in my view is daft unless you cannot affford a higher repayment and so need this "insurance" against a higher payment .
 

PC100

Registered User
Messages
4
Re: Will submitting complaint to Financial Ombudsman re brekage fees have any neg. ef

As far as I know, all the main banks breakage fees have been deemed fair or at least legal, to date.
Unless the bank have made an error in their calculations, you have little hope of achieving a result.
Simply put, the bank would have been in a loss situation if they gave a fixed rate mortgage for say 4.5% and then rates rose to above this level.
They insured against this happening and the breakage fees are designed to cover the cost of this insurance over the remaining life of the fixed rate term.
 

jack2009

Frequent Poster
Messages
754
Re: Will submitting complaint to Financial Ombudsman re brekage fees have any neg. ef

Thanks for your reply Brendan.

I'm also curious to know whether anybody else submitted a complaint to the Ombudsman re fixed rate breakage costs? A significant number of people, on this forum, have expressed their frustration with being locked into fixed rate mortgages, but has anyone actually taken any action to extricate oneself?
Yes, a recent decision was made by the Ombudsman that this was all fair!
 
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