AIB AIB documentation from 2008

FT1579

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Hi all I am one of the many who received the letter from AIB in April re mortgage redress. In my original offer I have the clause 3.2 as mentioned in other posts. I then found during a recent clear out (not filed at all) a letter from July 2008 after a year of my fixed rate was up. This may be useful to other people to see who haven't been able to locate their documentation. When I received this letter i went for 3 year fixed rate. Then in 2011 it wasn't an option. I was going to go through the appeals process as during the times I had to take out a couple of loans to get through the tough times and still owe money on management fees. I know there are people in much worse situations also. If I picked the 3 year fixed rate in 2008 will they say you had the option and chose no so good luck? As per offering me a tracker now should i take it or could it be a negative in the future? Thanks so much and good luck to everyone going through the process.
 

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I am not sure what your point is? I don't think that this letter changes anything.

They were obliged to offer you a tracker in July 2008 and they did so. You chose a 3 year fixed rate.

At the end of the three year fixed rate, they were obliged to offer you a tracker and they did not do so.

They have now acknowledged that they should have done so. But, they say, had they done so it would have been higher than the SVR so you were not impacted.

The nub of the issue is whether they had a prevailing rate in 2011 when your fixed rate ended. I argue that they had and it was ECB + 1.25% or ECB +1.5%. And that they cannot reset it retrospectively.

Brendan
 
Hi Brendan
Thank you for your reply. I guess I'm really seeking advice as to whether I should just leave it be as you say the rate would have been higher so I wasn't impacted. Apologies I'm not great with financial issues!
 
Hi FT

No, you should not leave it be.

I have pointed out many times that, in my opinion, AIB is wrong in this case. They should have put everyone on 1.25% or 1.5%.

But it's really up to the Courts or the Ombudsman to impose that solution.

Brendan
 
Hi, I got the same above letter which I have absolutely no recollection of, however AIB were able to forward me on a copy that they had posted to me in 2006 so as you can imagine I am kicking myself for not replying to it at the time. I am clutching at straws here but the fact that I did not reply to the letter requesting what interest rate I wanted I take it that they had the right to automatically put me on the variable rate? Silly questions, but I have to ask! Thanks
 
I am clutching at straws here but the fact that I did not reply to the letter requesting what interest rate I wanted I take it that they had the right to automatically put me on the variable rate?

Correct.

They were obliged to offer you a tracker.
They did.
You did not accept the offer.
Most people in 2006 and most banks had no idea how valuable they were.

Your contract says that they must offer you a tracker after any fixed rate period. Did you fix since? You could fix now. Does your contract specify what the tracker rate would be? If so, it would be worth doing. If it does not specify the rate, then it's not worth doing.

Brendan
 
Thanks Brendan, I have been on variable rate since the first fixed year was up, so since May 2006. The Tracker offered at that point was 3.6%. Thanks again for replying!
 
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