Moderator's note: This Key Post is a summary of the issues. Do not tag your case onto this thread. Start a new thread with your specific question.
Brendan
As requested here's key points about KBC Tracker issue. - this post will be added to over the next couple of days.
If you have received a letter from KBC dated January 5th (possibly other dates), then this letter is confiming that you are considered an impacted customer.
Assuming there is nothing unusual about your mortgage, such as it being paid off before KBC wrongly applied a high standard variable rate, it means you will be returned to a tracker rate at the terms written in your contract or detailed in the infamous flyer (0.95% - 1.4%) (see attached)
You will also receive a refund of the overpaid interest since the end of your fixed rate period and an amount of compensation.
What do you need to do? - Nothing really. The tracker rate will be applied first (estimated March / April payment) and theern you will receive your refund after that.
Who received the letter?
1 - I took out a tracker mortgage and then at a date up to July 2008 went to fixed for a period of 2-5 years.
Those who originally signed up to a tracker and has a specific percentage above ECB Refi rate detailed in their special conditions and who then moved onto a fixed rate for a period of 2-5 years after responding to an unsolicited "special offer" sent by KBC with each mortgage rate increase between 2006 & July 2008.
This cohort are the group that fought most as they specifically signed up to a tracker and responded to an unsolicited "Special Offer" fixed rate document that gave very little time to respond to and avail of the "Special Rate". This group (including myself) always felt cheated and many took cases to the FSO.
2 - I applied for or drew down a fixed rate new mortgage from Nov 2006 - Feb 2008. - UPDATED
Some of those who applied for or drew down a fixed rate mortgage from November 7th 2006 and end of February 2008 through their broker network. (though it seems direct customers are also included). Note that KBC say "applications" - so if you applied in Feb 2008 but only drew down in July 2008, you may be included.
The reason you are included is that KBC sent a communication to brokers in Nov 2006 to say that all fixed rate mortgages will roll onto specific tracker rates at the end of the fixed rate period. This communication expired in February 2008.
It should be noted that communication to brokers by banks are understood to be about new business. Brokers understand this, so this flyer would not apply to those who had commenced a mortgage prior to the date of the flyer or who applied for a mortgage after the flyer was superseded by *new communication in March 2008. - (*Assumption that a new communication was issued due to Central Bank accepting the dates)
It seems that KBC are not treating all fixed rate new mortgages in this cohort equally and there is no information as to how they are deeming some of this cohort impacted and others not impacted. If further information is received, this will be updated.
Here is a link to KBC's Public Statement from December 20th 2017 regarding above
[broken link removed]
3 -
KBC returned my tracker, after taking it from me as a condition for restructuring back in 2009
In 2010, the Code of Conduct on Mortgage Arrears prohibited lenders from taking people trackers from them as a condition for restructuring. It appears that KBC has agreed to give trackers back to people from whom they took them before 2010. This seems to be the first group that KBC acknowledge and some have already received an initial refund payment and have been returned to their tracker.
Details of the press release about this cohort is here - [broken link removed]
There are other customers with different scenarios that have not been deemed impacted, but depending on their contracts and any other supporting communication, they may be added as the Central bank moves into the final phase.
Brendan
As requested here's key points about KBC Tracker issue. - this post will be added to over the next couple of days.
If you have received a letter from KBC dated January 5th (possibly other dates), then this letter is confiming that you are considered an impacted customer.
Assuming there is nothing unusual about your mortgage, such as it being paid off before KBC wrongly applied a high standard variable rate, it means you will be returned to a tracker rate at the terms written in your contract or detailed in the infamous flyer (0.95% - 1.4%) (see attached)
You will also receive a refund of the overpaid interest since the end of your fixed rate period and an amount of compensation.
What do you need to do? - Nothing really. The tracker rate will be applied first (estimated March / April payment) and theern you will receive your refund after that.
Who received the letter?
1 - I took out a tracker mortgage and then at a date up to July 2008 went to fixed for a period of 2-5 years.
Those who originally signed up to a tracker and has a specific percentage above ECB Refi rate detailed in their special conditions and who then moved onto a fixed rate for a period of 2-5 years after responding to an unsolicited "special offer" sent by KBC with each mortgage rate increase between 2006 & July 2008.
This cohort are the group that fought most as they specifically signed up to a tracker and responded to an unsolicited "Special Offer" fixed rate document that gave very little time to respond to and avail of the "Special Rate". This group (including myself) always felt cheated and many took cases to the FSO.
2 - I applied for or drew down a fixed rate new mortgage from Nov 2006 - Feb 2008. - UPDATED
Some of those who applied for or drew down a fixed rate mortgage from November 7th 2006 and end of February 2008 through their broker network. (though it seems direct customers are also included). Note that KBC say "applications" - so if you applied in Feb 2008 but only drew down in July 2008, you may be included.
The reason you are included is that KBC sent a communication to brokers in Nov 2006 to say that all fixed rate mortgages will roll onto specific tracker rates at the end of the fixed rate period. This communication expired in February 2008.
It should be noted that communication to brokers by banks are understood to be about new business. Brokers understand this, so this flyer would not apply to those who had commenced a mortgage prior to the date of the flyer or who applied for a mortgage after the flyer was superseded by *new communication in March 2008. - (*Assumption that a new communication was issued due to Central Bank accepting the dates)
It seems that KBC are not treating all fixed rate new mortgages in this cohort equally and there is no information as to how they are deeming some of this cohort impacted and others not impacted. If further information is received, this will be updated.
Here is a link to KBC's Public Statement from December 20th 2017 regarding above
[broken link removed]
3 -
KBC returned my tracker, after taking it from me as a condition for restructuring back in 2009
In 2010, the Code of Conduct on Mortgage Arrears prohibited lenders from taking people trackers from them as a condition for restructuring. It appears that KBC has agreed to give trackers back to people from whom they took them before 2010. This seems to be the first group that KBC acknowledge and some have already received an initial refund payment and have been returned to their tracker.
Details of the press release about this cohort is here - [broken link removed]
There are other customers with different scenarios that have not been deemed impacted, but depending on their contracts and any other supporting communication, they may be added as the Central bank moves into the final phase.
Attachments
Last edited: