AIB Aib ex staff - getting €1,650 compensation

Rarrrrrr

Registered User
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2
Hi there
I'm just wondering if anyone has discussed aib staff mortgages here. I have a staff mortgage, I took it out in 2007. At the time I had the majority of it on a staff preferential fixed rate of 3% and then the balance was on a tracker rate. After a few years as far as I remember we were advised to move to a variable rate as we would no longer have to pay benefit in kind. I'm just wondering if we should have been offered a tracker rate as the other portion of the mortgage is on a tracker rate? I can't remember all of the details as to be honest although I'm staff I didn't really understand all of the terms and conditions at the time. I have requested a copy of my letter of offer and NY correspondence I signed/ received when I moved from variable. To summarise.. Has this been brought up before and if so what was the advice/ opinion. Thank you
 

Rarrrrrr

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I recieved a response from AIB. I went on to a standard 1 year fixed rate as it was lower than the staff rate. At the end of the 1 year fixed period they wrote to me and asked what my instruction was, I did not reply and was put on to a standard variable rate. No idea where this leaves me, any guidance is very much appreciated.
 

Sarenco

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5,695
Did your contract provide that, in the absence of any election on your part, you would default to a standard variable rate as determined by the bank from time to time (sometimes known as the "reversionary" rate in the UK)?
 

pyrite

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Messages
15
I requested all my mortgage documentation and its available to collect. I haven't rang that number yet. But on speaking to staff mortgages they where adamant I do not have a case but I wouldn't trust them on past experiences.
 

test123

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54
My mortgage is currently under review with them, in the formal process. Staff business did phone me & tell me as I requested to come off the tracker myself that I not eligible under the redress scheme, but I'm not accepting that until I hear back formally from the review.
 

Gracie debru

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6
I recieved a response from AIB. I went on to a standard 1 year fixed rate as it was lower than the staff rate. At the end of the 1 year fixed period they wrote to me and asked what my instruction was, I did not reply and was put on to a standard variable rate. No idea where this leaves me, any guidance is very much appreciated.
Hi just wondering if you have had any update on this?
 

Sleven273

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21
Yea I am the same as Rarrrrr. They apparently issued a letter on the 16th January 2009. I have a copy of it but I am unable to attach to this thread for people to see. If someone tells me how to attach it i'll do it straight away. It does not offer the option of a tracker or does not state that this was an option for the mortgage to move onto a tracker. It basically just gives you the option of standard variable, if you wish to stay on the staff preferential rate or you wish to to switch to a fixed rate. I wonder if the T&C's are the same as the people who have that clause 3.2 with the option to revert to tracker at the prevailing rates . They did not provide me with the T&C's although I requested them previously. They only sent Part 1,Part 2, Part 5 &6 but left out the other Parts in the letter of offer fr some reason.
 

Gracie debru

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Yeah well mine is slightly complicated wanted top up branch wouldn't do it so staff business would but ment giving up tracker!! Compliant logged also with the ombudsman at the moment so should have answer by mid February
 

Sleven273

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21
I take it they rejected your complaint. From reading other threads recently AIB generally always try and deny any wrong doing and try and put it on you as opposed to holding their hands up, especially staff business in past experience. They don't realise staff are the banks customers too unfortunately.
 

Sleven273

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21
So I became a little bit more pro-active about things over the coming days. I have reviewed my mortgage contract and contacted AIB. My story is the Following:
1. Drewdown on a staff Preferential fixed rate of 3%
2. Moved onto a ECB tracker
3. Moved back to 3% Staff Preferential Fixed rate of 3%

In January 09 AIB issued to all staff advising due to BIK that it was not beneficial to staff to remain on the 3% and they were rolling all mortgages to the SVR rate of 3.2%.
From reviewing my contract I have the clause 3.2 in my T&C's of:

"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."

They never advised I had the option (c) of conversion to a tracker in Jan'09.
AIB content that the 3% preferential rate was not a fixed rate, however it states in the special conditions of the contract it was & that the breakage cost from the clause 3.3 did not apply if moving to a different rate from the staff fixed rate of 3%. I see AIB are offering 3.67% to people who have the clause 3.2 in other threads which is a crazy rate.
 

Phylynot

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1
Sleven, did you make any progress with staff business? I'm in a similar situation and haven't yet done anything about it. I was automatically taken off the staff preferential rate in 2009 and put on standard variable. I was on leave at the time and never received the offer of a tracker as many of my colleagues did due to the fact that the offers were sent via internal mail rather than through the post!
 

Mayoress

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2
I'm also staff at AIB, my mortgage is split - some on 3% preferential (I think at the time if it was over €190k it was 3% preferential & balance on tracker ) - tracker was higher at the time.. Was this ever explained to us?Why was it done this way?
Did we agree to this?
Did we sign anything to do with BIK or did the bank explain BIK to us?

How my letters of offer did we sign does anyone remember?

1 for 3% preferential & another for tracker? ( if your mortgages over €190k)
 

pyrite

Registered User
Messages
15
Hi
I got a letter from AIB Last Friday in relation to this.
Tracker redress.
They had over charged .10% on my tracker portition of my mortgage from 2007 to 2008. They refunded me around 1K.

Has anyone got anywhere with the part of the mortgage that was on the variable rate.
 

Andy836

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Messages
372
So I became a little bit more pro-active about things over the coming days. I have reviewed my mortgage contract and contacted AIB. My story is the Following:
1. Drewdown on a staff Preferential fixed rate of 3%
2. Moved onto a ECB tracker
3. Moved back to 3% Staff Preferential Fixed rate of 3%

In January 09 AIB issued to all staff advising due to BIK that it was not beneficial to staff to remain on the 3% and they were rolling all mortgages to the SVR rate of 3.2%.
From reviewing my contract I have the clause 3.2 in my T&C's of:

"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."

They never advised I had the option (c) of conversion to a tracker in Jan'09.
AIB content that the 3% preferential rate was not a fixed rate, however it states in the special conditions of the contract it was & that the breakage cost from the clause 3.3 did not apply if moving to a different rate from the staff fixed rate of 3%. I see AIB are offering 3.67% to people who have the clause 3.2 in other threads which is a crazy rate.
Bump

Anyone have any thoughts on this. A family member contacted me last night and appears to be in the same boat as Selvin above (and a raft of other people).
They moved jobs to AIB and moved their mortgage to the staff mortgage in 2006.
As such they're loan was split between a portion on a tracker / and a portion on the "staff preferential rate". This "staff rate" had the same clause as Slevin listed above (from their memory - they've to dig out their docs yet).
When they removed the Preferential rate they were contacted and advised SVR or Fixed were only options. They specifically remember being told that the tracker option was no longer an option.

This issue would appear to fall into the AIB's wider stance re the "Prevailing Rate" of ECB + 3.67% (AIB reiterated this to the Finance Committee in Sept 27, 2017 - link at end).

I've a couple of problems with this:
- Family member was not offered this tracker + margin in Jan '09.
- The simplest argument is the prevailing rate should be the rate applied to the closest loan matching this loan - which of course would be the other part of their mortgage (the tracker part which is ECB+1.1%) i.e. same Borrower, same security, same credit history
- The wording is vague, and the attitude that seems to be gaining traction is that where wording is vague the Bank's should come down on the side of the Borrower/Consumer.

At the Finance Committee Bernard Byrne sought to justify the ECB+3.67% "prevailing rate" based on the disconnection between the Bank's funding costs & the ECB rate.
I'm not sure I fully agree with this argument.
The Bank's cost of funds is a separate issue to the "prevailing rates appropriate to the Mortgage Loan" i.e. the wording highlighted references "the Mortgage Loan", not a "Mortgage Loan Pool".
In this case the specific Mortgage Loan was - (i) performing, (ii) aged [as in the loan had been in existence for over 5 years], (iii) low initial Loan to Value (<80%) [what the LTV at the time was is a different question].

Anyway, I'm wondering if anyone has any thoughts on this (i presume there's a huge number of AIB staff affected). My cousin is going to get her docs together and get all her ducks in a row.

https://beta.oireachtas.ie/en/debates/debate/joint_committee_on_finance_public_expenditure_and_reform_and_taoiseach/2017-09-26/2/
 

MrBrightside

Registered User
Messages
2
Hi ,

I went through the whole complaints process with this but it was rejected due to the term stating that (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.".

Needless to say I am very angry about the whole thing but I cannot believe more staff are not pursuing this like us. There appears to be a huge backlash from the Bank of Ireland staff .

I look forward to seeing more updates here . I anyone else is in a similar situation I think now would be a good time to submit the complaint.
 

Trash31

Registered User
Messages
1
Hi Gracie & Mr Brightside
I took out my staff mortgage in 2009 also with main portion on fixed preferential staff rate with remainder on tracker. Again, was taken off preferential and put on variable. I questioned my right to challenge this as part of the tracker scandal but was told by a colleague working on the redress not to waste my time, I hadn't a hope of getting anywhere with my complaint. Think I should log it at this point but don't even know where to start.
 

Gracie debru

Registered User
Messages
6
Hi well my complaint has been ongoing now for over two years. went through the whole process with staff business with no satisfaction. I then logged my complaint with the ombudsman last year who made contact with the bank. The bank asked then to keep my complaint on hold while then look at my complaint again. That was over a year ago now and have had no communication with tje bank whatsoever aragh!!! I basically have to wait now until I imagine the bank will reject my complaint again and then the ombudsman takes over very frustrating!!
 
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