Brendan Burgess
Founder
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- 52,115
Hi random
I have mentioned it in at least two interviews and probably three. I have also briefed the newspapers on it.
Brendan
ptsb redress programme announced
- Thread starter Brendan Burgess
- Start date
Hi random
I have mentioned it in at least two interviews and probably three. I have also briefed the newspapers on it.
Brendan
Just saw this on the PTSB website re redress:
"In other cases, the customer’s conditions provided that they are entitled to the appropriate margin over the ECB rate which was applicable on the maturity of the fixed rate (or discounted tracker) period. For these customers, the key factor is the date their fixed rate term or discounted tracker rate term would have matured, and the appropriate tracker rate which was applicable at that date."
Note it states the date their fixed rate term or discounted tracker rate term would have matured. This is something that surely should be challenged? I have repeatedly looked at my contract and it states that it will revert to tracker on expiry of fixed rate. It also states that fixed can be broken at any time subject to a fee. PTSB didn't charge a breakage fee which is not my problem. There is nothing that states if you break your fixed term early you have to wait until maturity of the original agreed term to revert to tracker. Any thoughts please?
"In other cases, the customer’s conditions provided that they are entitled to the appropriate margin over the ECB rate which was applicable on the maturity of the fixed rate (or discounted tracker) period. For these customers, the key factor is the date their fixed rate term or discounted tracker rate term would have matured, and the appropriate tracker rate which was applicable at that date."
Note it states the date their fixed rate term or discounted tracker rate term would have matured. This is something that surely should be challenged? I have repeatedly looked at my contract and it states that it will revert to tracker on expiry of fixed rate. It also states that fixed can be broken at any time subject to a fee. PTSB didn't charge a breakage fee which is not my problem. There is nothing that states if you break your fixed term early you have to wait until maturity of the original agreed term to revert to tracker. Any thoughts please?
random2011
Registered User
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- 233
Thanks Brendan..hopefully we'll see this because it needs to be highlighted.
I've been trying to figure out what refund people might get and it looks like it will be minimal if you read the FAQ's on the Ptsb website. I will outline a scenario below, can someone please tell me if I'm correct in my refund assumption? - not the figures but the basis of refund.
John doe has a 300k mortgage and in 2009 he should have went to tracker but instead went to variable. His mortgage balance today is 290k. Had he went on his tracker his mortgage balance today would 275k, so a difference of 15k.
Ptsb send him his redress letter and work out he overpaid for 68 months at an average of 300 per month = overpayment of 20,400,however, 15k of this overpayment will go to reduce his mortgae balance to what it should have been (275k) and he will get a refund of 5,400 + low level of Ptsb compensation (3,200),meaning John will get 8,600 in total. Doesn't seem like a good deal to me! Is my basic assumption correct?
John doe has a 300k mortgage and in 2009 he should have went to tracker but instead went to variable. His mortgage balance today is 290k. Had he went on his tracker his mortgage balance today would 275k, so a difference of 15k.
Ptsb send him his redress letter and work out he overpaid for 68 months at an average of 300 per month = overpayment of 20,400,however, 15k of this overpayment will go to reduce his mortgae balance to what it should have been (275k) and he will get a refund of 5,400 + low level of Ptsb compensation (3,200),meaning John will get 8,600 in total. Doesn't seem like a good deal to me! Is my basic assumption correct?
I think this scenario above is incorrect and we will get a refund of over payments made. I've spoken to Ptsb this afternoon. They can't give figures as we all know but according to them they won't be using our over payments to bring the mortgage down to what it should have been had we been on a lower interest rate. I think the faq's on their website are slightly confusing in this regard. They were to me anyway.
Hi all busy day
In regard to the matter of the margin this will be addressed as all that has occurred to date is point one of what I required which was the lower interest rate to apply to each account affected. This may not be the correct margin in some cases but at least has resulted in a stopping of the overcharging occurring. The next stage (of 12 I have requested) is the letters and their content which will require review for each case and then response to the Redress Board (Redress ironically means "Remedy or set right (an undesirable or unfair situation") Oxford Dictionary) which is what will happen certainly from my point of view. In regard to calculating the refund figure it is difficult to do as there is overcharged interest as well as overpaid payments. None of it should come off the loan balance and at present my view of the figures mentioned in terms of Compensation is totally unacceptable. There appears to me to be a position of lets see how that is viewed rather than seeking to resolve the matter fully. The sincerity of the apology will be clear in the letters, but remember the investigation is not complete or finalised. I will be in touch soon Padraic
In regard to the matter of the margin this will be addressed as all that has occurred to date is point one of what I required which was the lower interest rate to apply to each account affected. This may not be the correct margin in some cases but at least has resulted in a stopping of the overcharging occurring. The next stage (of 12 I have requested) is the letters and their content which will require review for each case and then response to the Redress Board (Redress ironically means "Remedy or set right (an undesirable or unfair situation") Oxford Dictionary) which is what will happen certainly from my point of view. In regard to calculating the refund figure it is difficult to do as there is overcharged interest as well as overpaid payments. None of it should come off the loan balance and at present my view of the figures mentioned in terms of Compensation is totally unacceptable. There appears to me to be a position of lets see how that is viewed rather than seeking to resolve the matter fully. The sincerity of the apology will be clear in the letters, but remember the investigation is not complete or finalised. I will be in touch soon Padraic
Clint Westwood
Registered User
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- 9
I fully agree with you,when people broke out of the fixed rate, that WAS the expiry of the fixed rate. Which in early 2009, the tracker rate would have been a lot less than the 3.3% that ptsb are offering for a year later. So I certainly feel the tracker rate that should apply is the one in Feb 09.
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The more I read about this, the less I like it. On the official page, there's talk of using the refund to pay off arrears before refunding the customer if there's anything left. This is OUR money, it's not up to them what to do with it. Arrears should be written off as part of the deal, they wouldn't have occurred if they hadn't defrauded us.
They also report the letters as being received.
They also report the letters as being received.
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D
Descart
Guest
Bronte,
You are correct, as the stones are lifted one by one off each financial institution you will see them scurrying away. AAM_user is correct in the choice of the word defraud.
You are correct, as the stones are lifted one by one off each financial institution you will see them scurrying away. AAM_user is correct in the choice of the word defraud.