AIB Appeals Panel rejected my claim over €1,650 on 3.67% issue

Discussion in 'Tracker Redress' started by Stacey Mckeogh, 19 Jul 2018.

  1. Stacey Mckeogh

    Stacey Mckeogh Registered User

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    Hi everyone, these threads have been so helpful. Thank you.
    A quick question. We asked to be put on a tracker with aib in 2011 (mortgage from 2006 - trackers were available on contract). We were told they were no longer available.

    We’ve since received our €1610 and offer of tracker now.
    Does anyone know a rough estimate of what the tracker would’ve probably been in 2011 if it were available?

    I’m trying to work out what our payments would’ve been but need an estimated interest rate to do so and can’t find anywhere what is the most likely figure.
    Thank you.
     
  2. Brendan Burgess

    Brendan Burgess Founder

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    If an ordinary lender were offering trackers to new customers they would probably have charged a margin of around 3%.

    But that is not the issue for you or anyone else affected by this. The issue is that you should have been put on the prevailing rate in 2011. I would argue that AIB had a prevailing rate and it was the last rate at which they issued trackers which was 1.25% or 1.5% depending on LTV.

    brendan
     
  3. Stacey Mckeogh

    Stacey Mckeogh Registered User

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    Thank you Brendan, that’s really helpful.
    So I can now go back over my statements and calculate what interest I would’ve paid if I had been given the prevailing rate.

    Thank you again for all these threads! I wouldn’t have a clue without them!
     
  4. Brendan Burgess

    Brendan Burgess Founder

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    You can if you want. But it's an academic exercise until AIB agrees or is forced to apply the 1.5% rate.

    Brendan
     
  5. Stacey Mckeogh

    Stacey Mckeogh Registered User

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    The independent appeal form is asking me for details of what I believe I am owed. Would this not apply here?
    I need some sort of educated estimated figure.
     
  6. Brendan Burgess

    Brendan Burgess Founder

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    Hi Stacey

    I think it would be very difficult to estimate that.

    Have you submitted an appeal already?

    What is the basis of the appeal? What stage is it at?

    Brendan
     
  7. Stacey Mckeogh

    Stacey Mckeogh Registered User

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    Haven’t submitted an appeal yet.

    We got our mortgage in 2006.
    Fixed in for 3 years
    Asked to go on tracker in 2011. As in contract.
    Told tracker was no longer available (have letter still).
    On variable rate since then.

    Received €1615 from AIB a few months ago. And offer of tracker mortgage at rate which is much higher than what we’re paying now in variable. Spoke to man in our aib branch and even he can’t work out where they got their figures from as they don’t make sense.

    Asked for appeals pack. I’m now filling that in. It’s so complicated. Asking for figures etc.

    We would like to appeal that we should’ve been given the tracker in 2011 when we asked and would like to be put into a tracker now at his rate, with possible refund of excess money we paid in interest. At one point we were paying 4.5% instead of the estimated 2.10%!!
     
  8. Brendan Burgess

    Brendan Burgess Founder

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    Hi Stacey

    I don't think it's reasonable for the appellant to be expected to do these very complicated calculations. So just say something like

    "REturn to tracker rate as per agreement and a full refund of all money overcharged. Plus Compensation based on the overcharge between 2008 to date"

    Brendan
     
  9. Stacey Mckeogh

    Stacey Mckeogh Registered User

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    Great, thank you Brendan, I did think it was crazy to expect us to do all these calculations.
    Thanks so much for your help.
     
  10. Stacey Mckeogh

    Stacey Mckeogh Registered User

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    Have no faith in the independent review panel.
    When we came out of our 3 year fixed rate in 2010 we asked to be put onto a tracker and have a letter from the bank refusing our request stating they’re no longer available.

    We just received our letter from the independent review panel saying that although the bank was wrong for this we received no financial lose....we sent in full details of exactly how much more we had paid because of not being allowed a tracker.

    No faith in this system at all. The banks will never lose.
     
  11. RedOnion

    RedOnion Frequent Poster

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    2,363
  12. Stacey Mckeogh

    Stacey Mckeogh Registered User

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    Yes, AIB tracker redress.
    Bank paid us the same compensation as everyone else received but we felt that because we had written proof that they had denied our request for a tracker back in 2010 we would’ve stood a bit of a chance in getting something back.

    They have offered us the same tracker as they’ve offered others, which makes no sense (even to AIB mortgage advisers) and isn’t worth it!

    Bank just said same as they have to everyone....that they just didn’t offer trackers at that time. Independent panel said in their letter to us that even though the bank was wrong we suffered no financial lose!!??
     
  13. RedOnion

    RedOnion Frequent Poster

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    Correct.
    Because nobody is challenging AIBs claim that if you had been offered a tracker at the time, it would have been at 3.x%

    You haven't suffered any financial loss by not being given a 3.x% tracker. So, instead of seeking compensation for that, you need to first prove AIBs calculation of 3.x% is wrong.

    The appeals panel are correct in their assessment, if they accept the 3.x% rate.
     
  14. Stacey Mckeogh

    Stacey Mckeogh Registered User

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    So there is no way to win this as there is no way to prove their calculations are wrong! And they are actually trying to claim that the tracker rate in 2010, if it had been available, would’ve been 7-12%!!!! How is that in any way realistic.

    In our appeal with disputed the rate they were ‘calculating’.
     
  15. Jim2007

    Jim2007 Frequent Poster

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    So they did pay you compensation and the independent panel decided that as a consequence you did not suffer a financial loss. No exactly the way you are presenting it now is it.... and you question their credibility....
     
  16. RedOnion

    RedOnion Frequent Poster

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    Did you provide a rate you thought it should have been, and provide details of how you calculated it? And did the appeals panel address that point specifically?
     
  17. Stacey Mckeogh

    Stacey Mckeogh Registered User

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    We asked to be put on a tracker in 2010.
    We were refused even though our contract stated that a tracker rate would be available to us.
    Using the tracker rates from previous years and estimating what the tracker would realistically have been had it been available in 2010 our accountant has given a rough idea of what we have over paid in mortgage payment as well as calculating what the balance of our mortgage would now be had we been on a tracker and the total is substantially more than the pathetic €1000 ‘compensation’ we have been given.
     
  18. RedOnion

    RedOnion Frequent Poster

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    Factoring in the financial crisis, and the cost of funding to Irish Banks...
    What rate did you propose?
     
  19. Stacey Mckeogh

    Stacey Mckeogh Registered User

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    I don’t remember the figures and can’t be bothered to look them all up again but the estimate was based on the variable and fixed rates that we were offered in 2010.

    Tracker rates were always lower than fixed or variable, so how the bank can claim that after 2008 they would have been massively higher doesn’t make sense.
    also, the banks prevailing rate on trackers, previously to 2008, was generally around the same figure but we’re supposed to believe that would’ve jumped but 5/6%.


    I don’t work in a bank, I’m not an accountant, I don’t know all the legal jargon. I’m just someone on the other side of a mortgage who feels that during a crisis that was caused by banks I was exploited to pay more money that I should’ve. The banks chose to change the rules but if I had not kept to my side of the deal my home would’ve been take off of me.
     
  20. RedOnion

    RedOnion Frequent Poster

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    Hi Stacey,

    Apologies if my posts were a bit aggressive. It wasn't my intention to come across that way. I think there was a lot of context missing from your opening post.

    I can understand how you feel wronged.

    I am an accountant. And I've worked for 16 years in banking. I wouldn't even know where to start calculation of tracker rate.
    If you paid an accountant to do it, I doubt you got value for money.