Case study Account Adjustment figures don't add up

A

AAM_User

Registered User
Messages
114
Just logged into the open 24 account & have found that instead of the newly adjusted figure last week of 2.3% "HOME LOAN - Variable Rate (LTV)", we are now on 2.3% "HOME LOAN - Tracker - ECB+2.25"

In the redress offer the payment was going to be reduced to €920. However in the new online statement it's reduced to €890 (figures rounded). Obviously this is great, a further €30 reduction per month, however, I'm a little confused as to wether or not this will also affect the payout & adjustment figure.

In addition, there was a very small amount of prepayment (couple of hundred euro) which had built up on the account over the years.

This amount had been taken into consideration when calculating the adjusted figure in the redress offer but has been removed in the new outstanding figure, so that the new outstanding figure is actually greater.
 
Last edited:
Would it be TRS taken into account on your Open 24 that wouldn't have been included in the redress figures?
 
I don't know why they wouldn't have taken it into account, they took the prepayments into account
 
The monthly payment amount on the redress docs is gross and doesn't factor in trs, if applicable.
 
TRS is a matter for revenue and not the responsibility of the bank, I remember now that I asked them about it when I called them and this is what they told me.
 
Aam user im confused by prepayment what is that? Ur amount of repayment is reduced because after u sent back ur form and they reduced the sum of ur mortgage that in turn then reduces your monthly payment as the balance outstanding on your mortgage is a couple of thousand less.
 
The prepayment is a small amount of credit we've built up on the account. e.g. The mortgage is €1400 a month, We pay €1500 we build up €100 in prepayment credit. (not actual figures).

Up to the official adjustment, they were taking this figure into account - e.g. we had €2,000 in prepayments on the account, the actual outstanding balance was €200,000 but we were being charged interest on €198,000 because they were taking that €2,000 of our money into account, it wasn't paid off the principle, but they had control of it.

If need be, we could use it to pay off the principle or use it in an emergency to make that month's full or partial payment.

So they were taking it into account all this time and now suddenly aren't. So we were paying interest on a slightly lower principle figure (which over time could have been equal to a mortgage payment in saved interest), and now they're still holding onto that money - it's in the T&Cs that it can't be refunded, but we aren't benefiting from it.
 
You must log in or register to reply here.
Back
Top