AIB AIB 3.67% customers to get €1000 each

Skippy1

Frequent Poster
Messages
60
I know this has been discussed before but….“Prevailing” is defined in Oxford Dictionary as: “Existing at a particular time; current” or “Having most appeal or influence; prevalent”

Sample of Part 1 extract received from AIB Customer on margin of 1.1% over ECB:
…………………………………
Applicable Interest Rate - 3.35% varying - includes margin of 1.10% over Tracker Rate.
……………………………..
What does “at the Bank’s then prevailing rates appropriate to the Mortgage Loan” in Clause 3.2 mean in the context of tracker interest rate.

The prevailing element of the variable interest rate is the “tracker rate”. The 1.1% is “appropriate to the mortgage loan” based on the LTV defined in the contract and margin band available at drawdown.

There are a few scenarios for a prevailing tracker margin, based on the standardised contracts with enduring entitlement to tracker, but none which allow AIB to increase after drawdown.

1 – The margin is prevailing until the mortgage is draw down. The contract states this in standardised contracts. It describes in detail the only way for Bank to increase margin (prior to drawdown) and that customer cannot avail of lower prevailing margin in the future. The question is lower than what prevailing margin if not currently on a tracker rate or AIB stopped offering for a period of time. For the same group of customers who drew down on their mortgages with the exact same terms and conditions it should be the margin prevailing at drawdown. This is what people went into contract with AIB assuming would be available.

2 – The margin is prevailing after drawdown for new customers. This is consistent with what is described in the contract, as “prevailing tracker margin” is described, and customer cannot avail of lower margin in future as above.

3 – The margin is prevailing after drawdown for existing customers with options for tracker, who have not yet chosen. The contract does not describe this mechanism or provide any warnings in contract or in advertised rates that margins can increase after drawdown. If this is what AIB had intended to do, it was not clear and is contrary to Consumer Protection Code.

I think it can be reasonable argued and is as described in the contract that the tracker margin available at drawdown, for the same population of customers, is the tracker margin which is “Existing at a particular time; current” or “Having most appeal or influence; prevalent”.

An altered tracker margin to suit AIB and disentitle existing customers to what was promised is:

- neither a tracker, or
- what people signed up for when entering contract
 

moneymakeover

Frequent Poster
Messages
483
I agree. It's obvious to me at least what they intended.

The margin is fixed. The ECB rate is variable.

Taken together it results in a prevailing rate when the fixed period ends.

But like you say the variable bit was never intended to refer to the margin.

Regards
 

Redman

Registered User
Messages
19
Thanks skippy/idesofmarch,
Looking at our paperwork,and the document they presented us with pre drawdown with the options of interest rates for us to choose from has the tracker rate as 5.75%,
Now 3.25%(ecb) plus aib margin of say the top end of 1.5% = 4.75%.Can anyone shed any light on this figure of 5.75%
 

Dunned

Registered User
Messages
33
In one of the final responses I've received it says "prior to the withdrawal of tracker rates in 2008, customers due to roll off fixed rates were given a number of options. One of these would have been a prevailing tracker rate (ECB + prevailing margin) based on the tracker rates available on the day the fixed rate expired. This was regardless of the tracker margin (if any) that had been quoted in their letter of offer"
 

Skippy1

Frequent Poster
Messages
60
regardless of the tracker margin (if any) that had been quoted in their letter of offer"
Thanks Dunned. That implied meaning from AIB is not what our contracts say. I understand that under current CB review people on trackers, who then fixed and refused trackers are getting trackers back at the correct margin and not AIB's made up "prevailing" one.

This margin issue was equally not transparent to those with options of tracker, who had intended to avail of during the lifetime of the loan.
 

el chapucero

Registered User
Messages
18
Hi Bungaro,
I would be interested in any meeting about this. I have the clause 3.2 and have tried to get the prevailing tracker rate that others had without any success.
 

dublin - 1

Registered User
Messages
25
Hi, new member but have been following threads, I think I come under this also, I have the clause in 3.2 but was never offered to back to tracker after fixed term. I would very interested in attending the meeting. Thanks
 

stacky147

Registered User
Messages
15
Hi
Im effected too, could i be invited to the next meeting ? Could someone share what was discussed/agreed at the last meeting ?
Should i engaged directly with a solicitor ?
 

Bob Minnion

Registered User
Messages
14
Hi , Just wondering can I be included in the AIB group my wife purchased her first home in 2008 she has the 3.2 clause but never had a tracker and no specific tracker rate quoted on her mortgage document, just wondering where does she stand.
 

Redman

Registered User
Messages
19
Hi Bob,there is a group of people that have got together to pool the €1600 they get to fight the bank regarding the prevailing rate issue,as far as I know there was a cut off point to join a couple of months back,
If your wife has clause 3.2 she should receive a letter from the bank identifying her as one of the four thousand that had a contractual right to be offered a tracker rate at the end of her fixed term ended.
There are many different contracts and it’s going to be up to each mortgage holder to present their case to the appeals board.
Has your wife got her original documents to hand ?
Request a copy of all documentation relating to her mortgage from the bank but be aware that I and others did this and when we got our data pack it was missing any pages of the contract with reference to a tracker,I have my original documents and did not match what they sent me.
It’s about getting all your ducks in a row for the appeals board because if I had’nt kept my original documents I would be none the wiser as they sent me a completly different set of terms & conditions when I contacted them to look for answers as to why pages of my contract were missing.
Hope it goes well

Regards

Redman
 

Ecunning

Registered User
Messages
1
Hi could someone PM me the outcome of the meeting please? I just got a letter last week offering me a prevailing tracker rate. I first took out my mortgage in Dec 08. I fixed it for 5 years in March 09 and then a further 4 in March 14. I have emailed AIB asking for further clarification as I reckon I should have been offered this in March 2014? I am a bit lost as to where I should turn now.
 

cbyrne

Registered User
Messages
4
Hi All,

I received my letter from AIB this morning offering the compensation, which I have attached, in case anyone hasn't seen it.

I am going to launch an appeal, but I see there are some people joining resources with the €1,600.

Can I join this, how is it going, what benefit would this have versus an appeal?
 

Attachments

PaddyDee

Registered User
Messages
1
Hi All,

We too received a letter from AIB this morning offering the compensation of €1600.

My Wife took out the mortgage in 2008 with a 1 year fixed initially and when this expired was moved onto a Variable Rate, never given the option of a tracker.

Can anyone Suggest What we should do going forward?
 

cbyrne

Registered User
Messages
4
Based on what I received I'm going to appeal as follows:

1. AIB Appeals Panel
2. FSO
3. Court

I'm assuming AIB Appeals Panel will fail, as I don't believe it to be impartial, and that my best chance stands with FSO and Court, but that I need to exhaust the AIB Appeals process before proceeding to FSO. In this regard I've reached out to AIB to get an Appeals Pack.

I know a some people are grouping together, but i'm not sure what the purpose of this is, beyond lobbying politicians, etc.

Anyone else have any thoughts?
 

Banemore

Registered User
Messages
4
Well the new word is "Affected" not "impacted" ... the difference your denied your contractual right But not overpaid on your mortgage... this is what we were told today by AIB ... like all above in this page we had a tracker for 3 years but then fixed for 5 years refused back in 2012to get our tracker back with our 3.2 clause and fighting since .Offered €300 in a complaint made by our solicitor.The FSO did NOTHING would not rule on this until bank review is over, and to consider court as we were told will bring severe cost .Now offered this €1600 what a joke .......
 

Jkell77

Registered User
Messages
1
Also got this letter today. Is a prevailing tracker different to an ordinary tracker. The prevailing rate is higher than our variable rate is now. Friend received refund from AIB few months back of €25k. Their rate is now 1.25%. Rang number we drew down our loan in August 2008 and were told at time we couldn’t get a tracker. Person I was talking to said we should have been offered and that this is a different complaint that we have now lodged. Should we have been able to avail of lower tracker rate all along.
 

shej

Frequent Poster
Messages
41
Hi Bungaro,
Just got our letter from AIB yesterday, would be really interested in joining the group. When I came off my fixed I actually looked for to go back on a tracker, completed application at my local AIB branch and forms were sent to head office but was then informed AIB were stopping them or words to that effect, I've no record of this unfortunately eventually taking the SVR, would really like to pursue and would appreciate joining group if not too late, could you pm me
Tks John
 
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