AIB AIB and tracker mortgage

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oregancl

Guest
No, problem, We were given a customer copy of our loan agreement and part 4 is called general terms and conditions of offer, it is part 3.2 of this section"Further fixed interest rate options/choices." and the wording is exactly as quoted by kopkidda. Hope this helps. Just a quick update was contacted after our meeting to say that the bank no longer offers tracker mortgages. Was advised by the contact at our branch to put the request in writing and get a written response then contact the Ombudsman if I feel we have grounds for a complaint. If anyone else has received any other info would appreciate the updates! Thanks.
 

cbyr1983

Registered User
Messages
47
But what tracker rate was on offer? None, because they were no longer doing them. So where does the rate come from, the offer doesnt seem to specify the amount over ECB that the tracker should be.

I'd like if you had a case but I dont think you do, it would be the same if fixed rates were no longer available when your original fixed ended, the bank couldn't just make up one specially and if they had to it's unlikely it would be worth having.
Totally agreed. The bank could now offer you a tracker at a high margin, or even revert to rates at the date you switched. Such is the wording of the loan agreement reproduced by the OP. I would be surprised if this works out too much in your favour, but good luck.
 
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oregancl

Guest
Absolutely understand your point. Have had two types of advice one group saying AIB have to honour the agreement and offer us their discontinued tracker rate and others who say they can make up a new "tracker" rate. Not sure what the outcome will be, certainly no harm in trying!
 

kopkidda

Frequent Poster
Messages
134
kopkidda, oregancl,

Would be grateful if you could tell me the precise location on your contracts of the relevant paragraph regarding what you would be offered at the end of your fixed rates.

i.e. Which section number, subsection etc...

Thanks.

D.
Its in Part 4 ,section 3.2

Update on my situation. Have posted letter last Friday back to the bank, saying that I wasn't happy with their response the last time and that even though they don't offer trackers rates to new business that I am not new business and that I have a contract stating that I am entitled to be offered a tracker rate after finishing my fixed. I have give them three weeks to reply and If the reply isn't to my liking that I will be seeking advice from the ombudsman.
 
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HarvestMoon

Guest
Hi, I am just reading this thread now, we had a similar clause in our mortgage agreement with AIB. I took this all the way through AIB and Ombudsamn process and they ruled in our favour on the tracker issue. I would not seek mediation as it is pointless, the bank are simply trying to stonewall you in the hope you will go away. It is the type of process you must persevere with to get where you want..

Full story outlined in this thread
 
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HarvestMoon

Guest
Hi Jacky, I think it is a scandal what they are doing and not sure why the ombudsman is allowing them to do it case by case, maybe it is perhaps each agreement is slightly different in length, term etc, but the clause seems standard in many of these cases so it is a no brainer. I have some professional experience in contracts and had it reviewed by some colleagues who would be expert in the area. This confirmed that it is a non arguable case from AIB side but they refused nonetheless. It makes you wonder what the Public Interest Directors are doing on the board of these banks. They are effectively treating their customers (who now own then) as dirt on their shoe, its laughable.

Regardless advice is to see it out, in the unlikely event that the ombudsman ruled against you I would be onto a solicitor next. You will get money back in event of favourable ruling if you overpaid from a point in time to a new tracker rate.
 
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oregancl

Guest
We are still waiting. The Ombudsman is currently looking into it, so should know one way or another in the next few weeks and will keep you updated.
 

kopkidda

Frequent Poster
Messages
134
An update on our story.

Got judgement back froim ombudsman in Sept, they said that we should of been offered a tracker rate of mortgage when our 3 year fixed ended. Which was fair enough.

The problem being and one I knew would come back up was that there was no tracker rate specified on original loan contract, meaning that I expected AIB to come back with some high tracker rate.

And duly, last week they offered us 5.15%(+ ECB) of a tracker.

Have contacted both Bank and Ombudsman again and received word back from Ombudsman today saying to look at a High Court judgement of J&E Davy - v - The Financial Services Ombudsman & Anor,High Court record No. 2008 140 JR .

And that for the reason given in this judgement that they couldnt comment further on the merits of the case and their file was closed.

So not sure were we stand now, probably stuck on AIB variable rate now.
 

kopkidda

Frequent Poster
Messages
134
Hi, just wondering kopkidda, if you had any success with this. I am in a similar situation now. Although I was originally on a tracker before fixing for 5 years. The FSO has now asked me to consider mediation with AIB, so not sure how these things usually go.
Just reading your post now Jacky .You have a better case then I did I feel as you had an original tracker rate and will no doubt be put back on this if you see your case through with the ombudsman.

All the best.

Let us know how you get on.
 

Arthur

Registered User
Messages
3
kopkidda, did you ever pursue this any further? I'm in exactly the same boat and AIB have just responded to me to say that I have no claim on a tracker - I;m wondering whetehr it;s worth pursuing with the Ombudsman
 

Gerry Canning

Frequent Poster
Messages
2,510
Before any more letters are sent and AIB are forewarned that there maybe an issue, I strongly advise anyone to write to AIB and request full copies of all documentation held on their account. You are entitled to yout info under legislation called(subject access request).

Peruse it,
You will then have a better handle on what has been done.

Keep copies and try not to get into phone conversation.

Go through Banks complaint procedure as far as possible.
If finally getting nowhere ,I would be inclined to get good legal help.
I am not a fan of Ombudsman,eg as comments in Banking enquiry I think all our (regulators) are too cosy with Banks.
Our Regulators would be hard to trust.
 

Balfour

Frequent Poster
Messages
150
Hi

I am exactly in the same position as kopkidda, got a letter from AIB offering 5.15 above the ECB rate. I am going to request all my documentation held on my account this week.
 

Arthur

Registered User
Messages
3
Hi

I am exactly in the same position as kopkidda, got a letter from AIB offering 5.15 above the ECB rate. I am going to request all my documentation held on my account this week.
AIB refused to offer me a tracker of any description so I've started the complaints process with the Ombudsman - I'll keep you posted. I think I've a strong enough case to insist on a tracker being reinstated (original contract states that at the end of any fixed interest period, the Customer may choose between: (a) a further fixed interest period, or (b) conversion to a variable interest rate Mortgage Loan (c) conversion to a tracker interest rate Mortgage Loan at the bank's then prevailing rates appropriate to the Mortgage Loan. If the customer does not exercise this choice, then the Mortgage Loan will automatically convert to the variable interest rate Mortgage Loan.'
However, as a specific tracker rate wasn't detailed in my original contract, I'm assuming the bank offer me 5.15 over the ECB or a similarly pointless tracker rate. Is there any argument that can stop the bank from applying whatever rate they choose and making the tracker pointless to avail of? Any help would be appreciated.....
 

Balfour

Frequent Poster
Messages
150
Hi Arthur, I was just wondering did you get any further in relation to your query with the Ombudsaman. I have sent in one last letter to the Bank stating my requirements i.e I want to be put on a tracker with a reasonable rate applied, will let you know outcome of same.
 
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rodger

Guest
Would be interested to hear what happened to kopkidda and Balfour

I have similar agreement but word tracker not mentioned in any of the contract.

But option to revert to variable rate
And original tracker is also described at variable rate

I am pursuing through financial adviser
And ombudsman
And possibly legal route

Please pm me if interested in joining
 

Balfour

Frequent Poster
Messages
150
Hi Rodger & All
I only got a letter back from the bank at the end of July, four months after I originally wrote them, this was after emailing them and calling them nearly every two weeks.
Anyways they have reduced their first offer of a tracker rate to 3.97%+ECB which is pointless considering I am currently on a 3.90% variable reducing to 3.65% in October.
They have also offered me a sum of money (few hundred) as a gesture of good will in recognition of the time it took them to respond to me.
I am just wondering what my next move is, Ombudsman?
Rodger/Arthur, have you made any progress at all? Would be very interested to know.
 

Gerry Canning

Frequent Poster
Messages
2,510
From the posts a big issue is that AIB did not specify eg. Tracker + ECB 1.5% .
Therefore they could methinks under contract make it Tracker( + 4% and that means an effective Variable rate Loan.

Another issue is that of the statute of limitations ie if the complaint mentioned happened more than 6 years ago , the Ombudsman can,t take it and the 6 year Rule is very hard to bypass..(the Law reform commission advised the 6 year rule be changed, but our {reforming?} government did nought.
 
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rodger

Guest
I thought if the complaint was registered inside the 6 years

Then they can take as long as they want to adjudicate
 
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