90,000 Former Ulster Bank Customers Overcharged Interest on Loans

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As reported by Charlie Weston today in the Independent: Charlie Weston article Link

Copyright issues so I can't copy/paste. To synopsise the article...
​
  • This affects approx 1/4 of the entire loan book before it was sold on.​
  • It affects customers across the spectrum from fixed to variable, to tracker rate customers.​
  • It seems to be regarding the amortization or dates that the loans were calculated on.​
  • Majority of customers overcharged by €50.​
  • Ulster Bank will be writing to all affected customers in tranches. It will be rectified by mid 2025.​
  • The first customers will be contacted before Christmas.​

Personal Note: No surprises that the Ulster Bank mortgage books were a mess.
 
Had a €249 refund and a phone call to apologise from AIB this week as a result of this.
 
Our mortgage was paid off about 6 years ago. We got a letter today offering us €40 as a goodwill gesture for their error. Sure it'll pay for a takeaway at least.
 
Marsha25 said:
Our mortgage was paid off about 6 years ago. We got a letter today offering us €40 as a goodwill gesture for their error. Sure it'll pay for a takeaway at least.
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Was the letter today the first you heard from them? When this story was first reported in November it stated that UB would write to all affected customers within days.
 
What Ulster Bank say and what Ulster Bank do are not always the same thing.

They are still operating in the Republic of Ireland a few years after they announced they were leaving
 
Similarly, we got 2 letters a couple of weeks ago, concerning 2 paid off mortgages and refunds credited to our bank account on 27th January.
 
Savvy said:
Was the letter today the first you heard from them? When this story was first reported in November it stated that UB would write to all affected customers within days.
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Yes. I hadn't seen anything about it in the media, so at first when skimming through the letter, seeing the word 'error', I thought they were going to be looking for money. Have to root out our mortgage documentation now, as apparently they will ask questions on it to complete identification checks.
 
I received this letter in Nov also. Rang during the week. They only asked for Mortgage Account number(which is on the first letter), name, address & date of birth.

The Mortgage was in joint names, and as I asked for the payment (€60)to be made to my account, they needed to talk to my spouse briefly to okay that.
 
Hi all,

This week our first letter from Ulster Bank arrived confirming that our mortgage was affected. The payment we are receiving is €700+

This seems quite large compared to others, and they haven't stated what proportion represents Compensation vs the amount needed to correct the account. I saw some news articles are mentioning and average compensation payment of €40 ...

Can I sound out people on this: am I wrong to feel that €40 would not represent adequate compensation for that level of overcharge? In any case, I will first ask them to give me a breakdown of the payment.
 
Got a letter from them last Thursday. €900 odd being credited to mortgage account. No breakdown and tbh how sure I will bother to try and find out. Was unexpected so will take it and move on.
 
damcw said:
The payment we are receiving is €700+
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damcw said:
am I wrong to feel that €40 would not represent adequate compensation for that level of overcharge?
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How does an overcharge of €700+ affect you?

For most people, an overcharge of that level is not life changing. They would not have lost their home. They would not have skipped a few meals. They would not have gone into mortgage arrears.

But if you suffered severe harm as a result of the overcharge, then you should be able to challenge it.
 
Are UB not sending out a schedule to show how the refund was calculated?

It should be
Interest overcharged
+ interest on interest
+ compensation

I would expect them to pay 10% compensation as that seemed standard in the tracker and satisfied most people thus avoiding lots of claims.
 
Not on my letter Brendan. Just the figure and explanation that is is made up of those two element, no breakdown of how either one was arrived at.
 
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Are UB not sending out a schedule to show how the refund was calculated?
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Not on my letter either; it simply says it covers (1) the cost of any additional interest that has been accrued to date as a result of error and (2) a compensatory amount to cover the current shortfall in capital and any potential future increase to the NMR as a result of error
 
Got a letter today on this matter from Ulsterbank, the mortgage was moved to PTSB at the time. My mortgage has been paid off for since early 2023.
The additional interest accrued due to their mistake was in our case €73.33, and they pay also a goodwill payment for €40.
Not exactly to life changing alright, but better in my pocket.
 
Also received my letter from UB even though mortgage is now with PTSB. In the region of €500+ will be credited to the account soon. Will never really notice it as it's going right into the account, or probably the PTSB credit account for overpayments, but better than nothing for sure.
 
I too have received letters today. Whilst I welcome it, is there a reason its going off of our mortgage as opposed to a refund?
 
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Polly 123 said:
I too have received letters today. Whilst I welcome it, is there a reason its going off of our mortgage as opposed to a refund?
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I'd say given it is an overcharge on the mortgage account, it is fair to put it against the mortgage account given the mortgage is still active.
You could ask them to send the moneys into your current account instead, given that you should need to respond to the letter anyways.
 
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