Bank changed commercial mortgage from Euribor + to Cost of Funds +

Clonback said:
I got a commercial 3 year fixed rate mortgage in early 2010 costing 2.86%
In October 2011 I got a letter from BOI informing me of change in method of calculating interest rate from Euribor to BCOF
As I was on a fixed rate nothing happened until the 3 ended and my rate increased to 3.41%.
I contacted my BOI manager and it took 9 months to get my excess interest refunded.Never got exact calculation from bank but now on BCOF + .98%
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That's the same letter I got. I think they sent a lot out however I guess it will depend on the conditions in the original offer letter to determine weather they can change the method of calculation. Mine is a 20 year lisn. I really don't see how afyer a few years they can move the goal posts to suit themselves.
 
Mrwhite said:
That's the same letter I got. I think they sent a lot out however I guess it will depend on the conditions in the original offer letter to determine weather they can change the method of calculation. Mine is a 20 year lisn. I really don't see how afyer a few years they can move the goal posts to suit themselves.
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I advice you to contact an expert. There is one guy on here who has taken many cases, he has been mentioned in national newspapers. As far as I know, but I'm not sure, he looks at your case, if it has merit, he takes it, if it doesn't he won't but will not charge you, presumably his fee is based on a percentage of you winning. It's Pariac Kissane. Not sure about the other posters on here who are experts, they need to make themselves known as experts in this field.

It looks to me this is another delibarate bank tactic, poster Clonback is basically telling you that. I think poster Karl Deeter mentioned it recently too, and he also writes for a newspaper and is heard on radio often.

(I have no connection to anyone)
 
Bronte said:
I advice you to contact an expert. There is one guy on here who has taken many cases, he has been mentioned in national newspapers. As far as I know, but I'm not sure, he looks at your case, if it has merit, he takes it, if it doesn't he won't but will not charge you, presumably his fee is based on a percentage of you winning. It's Pariac Kissane. Not sure about the other posters on here who are experts, they need to make themselves known as experts in this field.

It looks to me this is another delibarate bank tactic, poster Clonback is basically telling you that. I think poster Karl Deeter mentioned it recently too, and he also writes for a newspaper and is heard on radio often.

(I have no connection to anyone)
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Waiting for official response which they legally have to give and then will go seek advice.
 
Ok so bank wrote to me as they are legally required as they haven't answered my complaint saying they more time. Either they are lazy or worried can't be sure. If it was a simple yes or no surely they would have been able to respond quickly. Below is the exact wording on my letter of offer

The variable interest rate quoted for this facility is based on the banks prime rate plus a margin of 1.5% per annum currently 4.15% per annum. The bank of ireland prime rate is a rate primarily determined by reference to the euibor utilising the average of the 1 month euibor over the working days of the preceding week.

The bank changed this 3 years into a 20 year morgage. The main word is MAINLY as this isn't how they mainly calculated my rate. They say that in the term conditions on an attached appendix. 1 paragraph on page 9 of a 12 appendix allows them to change this. Surely some consumer legislation protects the consumer here.
 
I don't have it to hand as away at the moment but something along the lines of reserving the right to change conditions with 1 months notice. Just feel this isn't clear in the offer letter. Is there not some protection with consumer law were u can't put in sneaky terms and conditions. I would like to challenge the banks right to do this. My 2nd point is that even if they can do this they told me that when it was changed to bcof the rate would come down when the cost of money to them came down. After 2011 it didn't come down for 3 years despite constant drops in the rates they were getting funds.
 
A bank cannot unilaterally change a term in a loan facility without a valid reason that is specified in the contract. I would need you to post the exact wording of the bank's term in paragraph 9 " reserving the right to change the conditions with 1 months notice." to see if it is a valid term or not.
 
The offer letter refers to standard terms and conditions. On page 9 it states. "The method for calculating interest and the interest rate may be changed in respect of all facilities from time to time at the banks absolute descretion" so in some ways the reserve the right to do as they please. The offer letter I got States a method of calculating interest and a margin which I guess is irrelevant as with this term and condition the bank reserve the right to do as they please. I wonder is there not some consumer protection to stop such clauses.
However this isn't even my main point. The bank when they changed how they calculated my rate of interest explained this would result in a margin increase of 0.7% they said this was temporary due to high costs of funds for the bank but as these dropped so would the margin. What actually happened is while the costs of the banks costs of funds dropped the bank actually raised my rate by 0.2% increasing the increase in margin to over 2%. I am happy to challenge this but only if anyone thinks I have a case. The bank took 2 months to reply to me merely stating its in your terms and conditions and gave no explanation of why the interest rate didn't drop when the cost of funds dropped to them.
 
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