Key Post Successfully appealed NIB's increase in rate on investment property

Re: NIB changed mortgage name “Variable Rate Home Loan” to “Variable Investment Mortg

I have received a response to my complaint from the bank.

What an absolute load of rubbish. They basically said that because I put on the application form that the property was an investment property it gives them the right to have me on an investment mortgage.

I have to go to the regualtor I think.
 
Re: NIB changed mortgage name “Variable Rate Home Loan” to “Variable Investment Mortg

I got a letter today stating investigations are underway. In view of the concerns expressed I am assured all aspects of the matter are thoroughly reviewed prior to response.

Apologies offered for the delay and they will respond as soon as the investigations are complete and in any case within the next 20 working days.
 
Re: NIB changed mortgage name “Variable Rate Home Loan” to “Variable Investment Mortg

Tomorrow said:
I just got a letter from my branch saying the the complaint has been passed on and I would receive a reply by 29 March.

Anybody else have any luck?
Click to expand...

Did you get a reply. I wrote my letter over a week ago, and got the letter saying that they would look into it over the next 20 days.
 
Re: NIB changed mortgage name “Variable Rate Home Loan” to “Variable Investment Mortg

I did - see my post above.
The reply ignored everything I put in the letter and just said that when I applied for the mortgage I put on the application it was for an investment property.

I need to go to the regulator now
 
Re: NIB changed mortgage name “Variable Rate Home Loan” to “Variable Investment Mortg

Thanks.

I will probably get the same and be going to the regulator.

I will post my reply here when I get it.
 
Re: NIB changed mortgage name “Variable Rate Home Loan” to “Variable Investment Mortg

I got my response from NIB, on the basis that the application stated the loan was for an investment property, they have changed the name to “Variable Rate Investment Mortgage” and do not intend to rename my loan “Variable Rate Home Loan” as I have requested.

The variable quoted was the only reference rate available at that time and therefore this was the reference rate for my loan. The bank introduced a new ”Investment Mortgage Rate” in Feb 09, and advised me this rate would now apply. The bank cannot accede to my request to apply the “Home Loan Rate” as this is only available to Principal Primary Residence’s.

They confirmed the internal complaints procedure is now exhausted.

They have ignored the fact that my Terms and Conditions clearly state it is a “Variable Rate Home Loan” and the interest rate applicable is the “Home Loan Rate” and this is what I have always had until they changed it.

Complaint on the way to Ombudsman.
 
Re: NIB changed mortgage name “Variable Rate Home Loan” to “Variable Investment Mortg

Hi all,
I'm in the same situation with NIB, and reading this thread has spurred me into action to make a complaint. Any tips from your experiences on how best to go about it? Thanks!
 
Re: NIB changed mortgage name “Variable Rate Home Loan” to “Variable Investment Mortg

I have got the letter saying that I have exhausted all the internal procedures and I have 15 days to lodge a complaint with the ombudsman.

Anyone get any feedback from the ombodsmans office.

Looks like I will get a letter off to the ombudsman next week.
 
Re: NIB changed mortgage name “Variable Rate Home Loan” to “Variable Investment Mortg

The Ombudsman has offered to mediate in my dispute with NIB before it is decided to investigate. Both parties must be willing and nothing is binding unless both parties agree to the outcome. If interested let them know within ten days, otherwise the matter will be immediately referred for investigation.

I think I am entitled to the “Home Loan Rate”, NIB doesn’t think I am entitled to this rate and have confirmed in their final response they will not accede to this. I am either entitled to it or I am not, there is no middle ground so I cannot see any basis for mediation.

My thinking at the moment is why waste any more time, the only way to get a definitive answer is to have the investigation, and I will accept the Ombudsman’s decision whether in my favour or not.
 
Re: NIB changed mortgage name “Variable Rate Home Loan” to “Variable Investment Mortg

twofor1 said:
The variable quoted was the only reference rate available at that time and therefore this was the reference rate for my loan. The bank introduced a new ”Investment Mortgage Rate” in Feb 09, and advised me this rate would now apply.
Click to expand...
I think the are trying to ride roughshod over their own terms and conditions and I cannot see how the Financial regulator can allow a bank to alter the terms and conditions of a mortgage after it has been concluded by them simply sending you a letter stating that a new type of mortgage will be applied to your contract. If they can do that they can unilaterly change all the terms and conditions of everyone's contracts.
 
Re: NIB changed mortgage name “Variable Rate Home Loan” to “Variable Investment Mortg

Agreed. How can sending out a letter changing a name change the original contract which was "variable rate home loan" not "variable investment mortgage". Surely if it is as simple as this then NIB could write to any customer and change the name of their mortgage to a.n.other and alter the original terms and rates?
It will be very interesting to see what the ombudsman makes of this one.
 
Re: NIB changed mortgage name “Variable Rate Home Loan” to “Variable Investment Mortg

I agree - there is no justification for this behaviour by NIB.

I am awaiting word from the regulator. I will accept whatever decision is made but I hope it does not agree with a bank changing the terms and conditions of my mortgage like this. Surely it opens the door for any bank to do this to any mortgage holder. In my opinion a decision liek this would give banks alot of power

Tomorrow
 
Re: NIB changed mortgage name “Variable Rate Home Loan” to “Variable Investment Mortg

Sent off my letter to the ombundsman today following letter recieved to state I had exhausted Banks internal procedures.
 
Re: NIB changed mortgage name “Variable Rate Home Loan” to “Variable Investment Mortg

The Ombudsman has acknowledged my letter declining mediation. He says this matter will now be investigated and adjudicated on. He will be in touch in due course.
 
Re: NIB changed mortgage name “Variable Rate Home Loan” to “Variable Investment Mortg

Thanks for the updates. I see in the paper today that the ombudsman has had a big rise in the number of complaints against banks with regards to mortgages and that many of the complaints are being upheld against the banks.
 
Re: NIB changed mortgage name “Variable Rate Home Loan” to “Variable Investment Mortg

Just a question about the information that the ombudsman can request from the bank.

Can the ombudsman request minutes of meetings, and internal emails between Bank officials.

If it could be shown from internal meetings, internal communications that the bank had a deliberate policy of confusing account holders with regard to the nature of the changes. Also I rang one of there help desks at the time, would they have a recording, be able to provide transcripts of the conversation as I think it could help my case.

I know the banks are not public boddies and do not come under FOI. However if a decision was taken in the Bank to regarding the change of title and the reason for it, would the ombudsman have to power to uncover it.



Thanks.
 
Re: NIB changed mortgage name “Variable Rate Home Loan” to “Variable Investment Mortg

Does anybody have anymore updates on their progress on this topic

Thanks

Buzz
 
Re: NIB changed mortgage name “Variable Rate Home Loan” to “Variable Investment Mortg

The investigation into our complaint to the Ombudsman against NIB is now concluded. We have received a copy of the Finding in which the background to the case is outlined, the Complainant’s case is outlined, The Provider’s case is outlined, then the Finding, the last section of which is the only relevant piece and goes as follows;

It is submitted by the Complainants that their terms and conditions were affected by the change that was implemented after 11th Feb 2009 as the criteria for calculating the monthly interest on the loan was affected. In my opinion any change in the method of calculating interest is a change in the terms and conditions. The Complainants are accordingly entitled to rely on the agreement of xxxx.

The complaint is upheld.

The complainants are entitled to have their mortgage interest calculated in accordance with the Respondent’s Home Loan Rate, and I direct the Bank to do so.

Conclusion

The complaint is substantiated pursuant to Section 57C1 (2) (B) of the Central Bank and Financial Services Authority of Ireland Act, 2004.

The above finding is legally binding on both parties, subject only to an appeal to the High Court within 21 calendar days.

Joe Meade
Financial Services Ombudsman
 
Re: NIB changed mortgage name “Variable Rate Home Loan” to “Variable Investment Mortg

That is a fantastic result. You must be delighted.

I hope the ombudsman goes further though and orders all banks who have changed the original terms and conditions of the calculation of mortgage interest for investments which were under home loan rates initially into investment loan rates. I don't think it's good enough that it only applies to cases where clients have taken a case to the regulator.
 
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Re: NIB changed mortgage name “Variable Rate Home Loan” to “Variable Investment Mortg

Hi twofor1 - congratulations! That's a great result and well done on the work and effort you put into it.
I agree with Bronte - should Mr Meade not direct NIB to return all these affected mortgages back to their original terms and conditions now?
It will be interesting to see how NIB now deal with this.
 
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