AIB AIB, tracker rate in contract, fixed - not getting my tracker back.

I received my letter from aib with a offered a commercially priced prevailing tracker rate of 3.67% while we appreciate that thus is not the response you were hoping for ,we believe this is a fair outcome to the issue you have raised and please take this as our final response
 
Hi Bradym,

That is disappointing, especially if CB have sanctioned this. To me a tracker is a tracker and should be a low rate. I sense this is something other banks will try also for borderline cases. Maybe run it by your Solicitor in the context of what's happening with other mortgages.
 
The term "prevailing rates " means the interest rates then current and available at the date that a customer's fixed rate period expires .
The bank discontinued providing tracker rates to customers in Oct 2008 and therefore did not have a quoted prevailing tracker rate in Oct 2009 when your fixed rate period expired .as the bank was only in a position to offer rates at the expiry of your fixed rate period that were then currently available ..being the Bank's prevailing fixed or variable rates ,there was no indication or guarantee given in the bank correspondence that a tracker rate would be available on expiry of your fixed interest Rate period
 
Central bank governor is due to appear before the finance committee in April.

He will have to explain how Aib can get away with that.

I'm inclined to think the CB are somehow supporting this fake rate.
 
Yes it looks like it- what a pity. CB can't win with this examination. There won't be any winners and I do feel for them as the final impact is going to be eye watering. While the CB have acted it's too late the damage is done.

When fines, refunds and compensation are combined this is likely to be a billion euro scandal. It will potentially lead to calls for the CBs responsibilities to be separated across new bodies/regulators. The only upside is that is has been uncovered and not buried.
 
Contact Padraic Kissane. He is in the process of fighting this rate issue for many of us.
 
Thank you :) I seen his name mentioned many times on this page I should look him up ..I'm worried it will cost me money ...4 young kids work full time and I've still no money lol
 
Thank you :) I seen his name mentioned many times on this page I should look him up ..I'm worried it will cost me money ...4 young kids work full time and I've still no money lol
 
Bradym said:
Thank you :) I seen his name mentioned many times on this page I should look him up ..I'm worried it will cost me money ...4 young kids work full time and I've still no money lol
Click to expand...

Bradym. I know the feeling. It's well worth contacting Padraic Kissane. I found him to be very understanding of our situation and he gave me some hope when there wasn't much noise about the tracker issue. Still waiting for my Tracker...but I know I'm in good hands
 
Why does everybody accept the bank convenient definition of a "Prevailing Rate" as a rate that is current and available ? The "available" part suits the bank. Prevailing means "existing at a particular time; current." . If the bank wanted to define "prevailing" as "current and available" then they should have included this definition in the contract with the borrower . There are many many tracker rates current since 2005 .
If the bank wanted the option to withdraw these rates during the lifetime of the mortgage then they should have included this condition in the contract with the borrower before the borrower signed up to the mortgage. It does not seem fair the bank can decide to withdraw a tracker rate in 2008 and make it unavailable without firstly renegotiating the contracts that they already had in place with borrowers. Also in 2005 or thereabouts nobody would have ever envisaged that a tracker rate would mean > ECB plus the Bank Variable Rate.
Would a person have signed up to a mortgage if they knew that the bank could change what was explicitly written in the contract at any time and get away with it?
 
I didn't accept it either and still don't. Got no good out of the FSO a few years back on this. I wonder would it be a bit different now........
It wasn't really having the wool pulled over either. I saw this in the documentation way back about "at the end of the fixed interest rate period....." but when I tried to get this at that time it felt like a david and goliath situation - it is that , as far as I can see , there is nowhere to go other that the high court (and with no resources).
 
A joint fund could be organised for high court fight?

Each affected person could contribute say€1000

And one individual go forward
 
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