AIB Good news if your AIB Fixed rate ended between 10 October 2008 and 12 January 2009
- Thread starter Brendan Burgess
- Start date
Received ‘300’ letter this morning. Came from AIB staff business as I am former staff. 2 pages in total describing write down of 12% and interest. A cheque for the total value enclosed also as the mortgage account had been closed, addressed to joint parties. Q&A document also included. Said that lodging the cheque would not affect right to complain to FSPO or take legal action.
Next steps stated in the letter relate to the TME process and AIB has said they will write within the next two months regarding same. I get the feeling that the FSPO payment most likely higher than the TME assessment (albeit I’m not familiar with how that’s calculated) so I’m doubting anything substantive will come from it apart from perhaps a contribution toward to cost of getting independent professional advice. Also noted that details of any appeal process will be communicated in due course.
Next steps stated in the letter relate to the TME process and AIB has said they will write within the next two months regarding same. I get the feeling that the FSPO payment most likely higher than the TME assessment (albeit I’m not familiar with how that’s calculated) so I’m doubting anything substantive will come from it apart from perhaps a contribution toward to cost of getting independent professional advice. Also noted that details of any appeal process will be communicated in due course.
Brendan Burgess
Founder
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Hi McEvoy
1) The TME assessment will work out what interest you would have been charged on a rate of around 1.5%.
2) Next they will work out the difference between this and what you actually paid.
3) Then they will compare this to the 12% write down + interest on the 12%
And they will pay you the higher amount
Take an extreme case. Someone cleared their loan in 2009. The difference between the tracker rate of 1.5% and the SVR would have been negligible so they will gain hugely from the 12% write down.
On the other hand someone who just cleared their mortgage recently might be better off with the TME figure.
1) The TME assessment will work out what interest you would have been charged on a rate of around 1.5%.
2) Next they will work out the difference between this and what you actually paid.
3) Then they will compare this to the 12% write down + interest on the 12%
And they will pay you the higher amount
Take an extreme case. Someone cleared their loan in 2009. The difference between the tracker rate of 1.5% and the SVR would have been negligible so they will gain hugely from the 12% write down.
On the other hand someone who just cleared their mortgage recently might be better off with the TME figure.
Thanks for explaining this Brendan,
I remember back in 2018 doing the calculation of the interest overcharge had we been on a tracker.
As it goes, it is much lower than than the FSPO Writedown and interest amount which we received so in my case (and I can only comment on my case) I‘m not holding my breath for any further payment or compensation from this TME process outside of a contribution to the cost of professional advice.
We closed the mortgage in 2016 and took out a new one with Haven (part of the AIB Group) so was wondering the other day if they would be offering a trade-up type of tracker to us on this new facility - long shot but was curious. The fact we received a lump sum today of the 12% write down and interest suggests not. Let’s see what the next couple of months brings. Sincere thanks again to you and to the broader group in helping to deliver this outcome for all impacted.
Brendan Burgess
Founder
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My understanding of it is that the TME provides automatic compensation of 15% of the amount overcharged.
So if you were overcharged €30k, you should get €4,500 in compensation.
The trade up is more complicated.
If you had been on a tracker of ECB +1.5%, AIB would have offered you a trade up mortgage of ECB +2.5%.
So you should certainly be asking for further redress based on this rate and you should be asking to be returned to AIB on this rate.
Brendan
Good News! Letter and cheque for 5K arrived today! 
I was having my doubts would I ever see anything arrive in the post! But now looking forward to what will be unveiled over the coming months!
Thank you @Brendan Burgess and everyone else on this forum for making this actually happen!
I was having my doubts would I ever see anything arrive in the post! But now looking forward to what will be unveiled over the coming months!Thank you @Brendan Burgess and everyone else on this forum for making this actually happen!
Hi All, I guess I am part of the Lucky 300.. Why I am classified as lucky I am yet to establish.. I feel lucky since I opened that letter yesterday and saw a cheque for 5K and another to follow in the next 2 months. Well done to all involved. To think I thought this was over after the 1,615 cheque. I think rather that trying to determine the amount on the next cheque I will with until end of Oct / Start of Nov. A ballpark figure or range for a 180K mortgage since 2006 would be nice ...(always fixed apart from when we went variable in the early days of the Mortgage for a short period after we broke out from fixed without charge) Keep up the good work everyone.
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Dragonfly 47
Registered User
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Hello all,
Thank you Brendan for the work done to date.
Anyone have this situation, I received 5000 euro cheque with a letter stating they will conclude review of my account by the end of October. I rang to enquire today and I have been told I am on a tracker rate as of this month at 1.75%. I would not have known this if I did not call - does this have any impact on compensation due?
Thank you Brendan for the work done to date.
Anyone have this situation, I received 5000 euro cheque with a letter stating they will conclude review of my account by the end of October. I rang to enquire today and I have been told I am on a tracker rate as of this month at 1.75%. I would not have known this if I did not call - does this have any impact on compensation due?
Hi @Dragonfly 47,
Your in the same boat as me. We received the 5K cheque with another Mystery about to come by end of August - There is some info on these pages which allows you to get a idea of how much that may be. I myself am going to wait. I believe this means we are part of the lucky 300 - [5600 + 300] there is further info on this on these pages. There will be a few calculations added together that will determine our final payment. I've not called the bank to see what our new rate is but like yours our repayment has reduced this month.
Mortgage balanced reduced also, this seems to be the over interest paid only, its within €1 based on the simple interest calculator, under under €5k out on compound calc, (thank you @October2019 )
But I understood this was to arriving in the form of a cheque?
The only figure my reduction was close to was the rough calculation of interest on the ombudsman decision, the compound interest figure!... which doesn't make sense! Everyone else got simple interest refunded by cheque! Helpline says I'll have to wait for letter!
I don’t think October’s calculator (which is excellent by the way) has any relevance to your right down
Brendan Burgess
Founder
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This is very complicated and you will have to wait until you get the calculations from AIB.
1) they will work out the total redress under the Ombudsman's formula - 12% + interest refund
2) They will work out the total overcharge between what you were charged and what you would have been charged at the tracker rate .
They will give you the higher of the two.
Let's say that under 1) the Write down is €36k and the interest refund is €14k
It would be roughly the other way around on 2) So a smaller write down and a bigger interest refund.
So if you got a write down less than you were expecting, don't worry. The refund should be bigger and you can apply it to writing down your mortgage if you wish. But as you are now on a tracker, you might have better things to do with your money.
Brendan
1) they will work out the total redress under the Ombudsman's formula - 12% + interest refund
2) They will work out the total overcharge between what you were charged and what you would have been charged at the tracker rate .
They will give you the higher of the two.
Let's say that under 1) the Write down is €36k and the interest refund is €14k
It would be roughly the other way around on 2) So a smaller write down and a bigger interest refund.
So if you got a write down less than you were expecting, don't worry. The refund should be bigger and you can apply it to writing down your mortgage if you wish. But as you are now on a tracker, you might have better things to do with your money.
Brendan