AIB AIB failure to advise us of our interest options - entitled to redress?

Culainn

New Member
Messages
5
Our AIB loan approval letter stated :
‘ you will be advised of your interest rate options before 03/04/2007 and interest instruction will be required prior to that date ‘.
They failed to advise us . We would have chosen a tracker it we knew it was an option .
Are we entitled to redress ? AIB says no.
 

Brendan Burgess

Founder
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37,703
Unlikely, but it's hard to tell without more detail.

I presume you had a fixed rate mortgage and the fixed period ended in 3 April 2007?

What happened then? Did they just default you to the SVR?

AIB did write to people and told them what their options were, so it's odd that they did not write to you.

Did you take it up with them at the time?

Brendan
 

Culainn

New Member
Messages
5
Yes .
Then they just defaulted to the SVR
They did not write to us .
No we did not take it up with them at the time as we did not realise the significance of not hearing from them.
In rejecting our claim , they recently acknowledged that they did not write to us and apologised 'for any
inconvenience caused ' !.
 

Brendan Burgess

Founder
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37,703
Hi Culainn
If they said that they would notify you and did not do so, then I would imagine that it is a breach of contract which is more important than any potential breach of the CPC or good practice.

When did you complain to AIB?

You can make a complaint to the Financial Services and Pensions Ombudsman.

Brendan
 

RedOnion

Frequent Poster
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3,132
In rejecting our claim , they recently acknowledged that they did not write to us and apologised 'for any
inconvenience caused ' !.
@Culainn
Did either the letter of offer or the mortgage contract mention a tracker rate, or being able to choose a tracker rate at the end of fixed term?

Ideally you want to find a way you are deemed impacted in the scope of the tracker redress. That's how you want it to be handled, as CB guidance means statute of limitations cannot applied by the banks.

If you bring a breach of contract case to FSPO for an action that wasn't taken 11 years later it will likely be rejected.

The scope of tracker examination includes (my emphasis): "customers had contractual rights to be offered the option of having Tracker Interest
Rates applied to their mortgage accounts at any stage during the Relevant Period and
were not offered the option of having Tracker Interest Rates applied to their accounts
at the appropriate and/or any stage during the Relevant Period"
 

Sarenco

Frequent Poster
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5,432
But I do believe there has been a breach of contract by AIB not notifying me of our interest rate options,
That certainly appears to be the case and that's the complaint I would pursue with the Ombudsman if I was in your position.

Keep it simple.
 

Culainn

New Member
Messages
5
P.s Peemac’s suggestion is very good . Not sure how I can do it but will certainly try
Re the Obudsman , I have lodged an appeal but they now tell me they have to do a jurisdiction analysis as they cannot adjudicate where there is a legal dispute . AIB have lodged legal proceedings for default in repayments , which would not have occurred if I had been on a tracker .
How is that for a hoist on someone elses’s petard ?
I await the Ombudsman’s deliberation .
 

Brendan Burgess

Founder
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37,703
Re the Obudsman , I have lodged an appeal but they now tell me they have to do a jurisdiction analysis as they cannot adjudicate where there is a legal dispute .
Hi Culainn

I had not heard of a jurisdiction analysis before. Is that their wording?

You cannot take legal action against the lender and go to the Ombudsman on the same issue.

But you can go to the Ombudsman on one issue, if the lender is taking legal action on a separate issue.

There might be a difficult for the Ombudsman if you are defending the legal proceedings on the basis that you should have been on a tracker.

A lot of legal proceedings for possession were adjourned as they were subject to the tracker examination.

Brendan
 

Culainn

New Member
Messages
5
I don’t have the exact wording to hand but that is the essence of what they wrote.
We are defending on the basis of entitlement to a tracker and lack of clarity from AIB on their paperwork. This has led to several deferrals by AIB.
My main query was on our entitlement to the offer of a tracker. It appears to me that there has been a breach of contract and that if that breach had not occurred I would have had the option of a tracker , which I would have taken up . QED
 

peemac

Frequent Poster
Messages
630
Having gone through the ombudsman back in 2012 on the tracker (and failed), they very much look at black and white and never of what "could have been".
As your mortgage document does not say you would be offered a tracker rate you will have to show that such offer of tracker was made to others with similar loan to you. Without that AIB will win as you must remember that 30% of all legal fees paid in this country are paid by the financial sector, so they will have at their beck and call the best legal advice in the country.

I would do my utmost to find at least two similar fixed rate loans where an offer of a tracker was made at the end of the fixed rate and then pay a specialist advisor to draft your ombudsman complaint.

If you found a customer who had offer of a tracker after the fixed rate ended and who had no promise of a tracker in their mortgage document and who took the tacker, then you'd have an extremely strong case.
 

Brendan Burgess

Founder
Messages
37,703
Hi Culainn

Lenders tend not to take legal action unless there are serious arrears and the borrower is paying nothing or not engaging.

If you had a tracker would it have made much difference? How much were you paying?

Brendan
 

Culainn

New Member
Messages
5
Hi Brendan.
Fair observation.
I have engaged at all times and continue to pay interest plus c 3k per annum
The loan period expired and the balance became due . We requested their calculation of the debt , which we have not received, and raised the tracker issue, which they have dismissed - hence the appeal to the Ombudsman. They have set dates for several court hearings but keep deferring when the date approaches.
I don't have a financial background but if I apply the ECB tracker rates over the period I estimate that there should be a refund of c. €100k
C
 

Brendan Burgess

Founder
Messages
37,703
What is the balance on the loan?
Was it in arrears before the loan period expired?
What is the value of the property?

Unfortunately, you would have had a better chance of a successful outcome with the Ombudsman. The Judge is unlikely to uphold such a claim.

It's certainly a card to play in discussions with AIB but if you could negotiate some deal, that would be a lot better.

Brendan
 

jmcc35

New Member
Messages
4
Culainn,

I have the exact same situation as you. The letter of offer said i would be informed of my interest rate options before the end of 1 year fixed rate. I got nothing and they have admitted this and said it was their error. I have filed complaint with FSPO in July 2018. I contacted them today and they said it was on hold until CBI investigation is finalised. Where are you at with yours?
 

peemac

Frequent Poster
Messages
630
Peemac,
the loan was for c 600k in c 2006.
Sorry, don't always see posts use @ attached to a user name and it pops up as an alert
@Culainn 600k in 2006 would equate to over 100k

I'd still be on the fence on whether there's a case if the mortgage started prior to 2003 when trackers did not exist.

I wonder did anyone from any bank that had a fixed rate from before 2004 finishing 2006 or later, get an option to go to tracker.
 

jmcc35

New Member
Messages
4
If your fixed rate expired after October 2008 and you got the €1,615 , this thread is of no relevance to you.

I have been looking at the letter sent to borrowers whose fixed rate ended before October 2008. Many people who got this did nothing.



View attachment 3762

View attachment 3763

In my view, this letter is not clear at all. It is designed to confuse people which would only encourage them to do nothing.

For example, it's clear what you do if you want a fixed rate. Just tear off the form and send it back.

But what do you do if you want a tracker? It's not clear to me at all.

Brendan
Hi Brendan,

I took out mortgage in 2006. Interest only for first year. Was told that i would be notified of my options prior to end of first year in 2007. I never got a letter with my options and they have confirmed this in a letter in 2018. I went on fixed again in 2008.

Is there anything i should do about this. I wrote to bank in early 2018 stating i should have been giving the option of a tracker. They dismissed my case. I then sent in an online complaint to Ombundsman. In the meantime AIB wrote out saying my case was part of wider investigation. Nothing since on either.

Thanks
 

Brendan Burgess

Founder
Messages
37,703
1) You have a complaint with the Ombudsman. They should have written to you asking if your complaint were still live.
2) You should write to AIB asking them for an update.

But until AIB rejects your claim again or tells you that you are no longer part of the investigation, then you can't do much.

Brendan
 
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