AIB AIB paying 7.5% compensation on Buy to Lets

doglvr

Registered User
Messages
10
Received my cheque from Aib on Thursday. Received only 7.5% compensation as my mortgage was a buy to let. Not sure of logic or rationale behind this??
 

Brendan Burgess

Founder
Messages
40,652
I would imagine that the rationale is that overcharging someone for their family home has much more serious consequences. More stress, more worry.

Brendan
 
M

mister32

Guest
I disagree.

A person could have been harassed by same banks to pay up at the high rate for years. If the bank took money out of people's pockets there should compensation. 7.5% doesn't cut it.
 
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mister32

Guest
And in your particular logic the overpayment of the investment loan could have resulted in losing the primary residence. Who is to say? Selling wasn't an option when property was in negative equity.

Is the central bank supporting these compensation payments? It is at the discretion of Aib?
 

Brendan Burgess

Founder
Messages
40,652
The 7.5% is an automatic compensation paid to people whether they have suffered at all, or suffered more than 7.5%.

If someone lost their home as a result of being overcharged on their tracker, they can apply for more compensation.

Brendan
 

Sarenco

Frequent Poster
Messages
6,176
Could the lower compensation have something to do with the fact that the interest payments would have been deductible for tax purposes?

Who knows?

The whole process lacks any kind of transparency.
 

seamus m

Frequent Poster
Messages
101
7.5% is a joke when you look at money bank would have gained if they had got away with this scam
 
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mister32

Guest
That's a very good point

In the case of overcharging of say €2 per month eg payment protection it's probably okay to pay 10% or 20%

But when overcharging €500 it's more like a criminal matter

For those people who actually lost their homes d
oes 15% compensate for their loss?
 

seamus m

Frequent Poster
Messages
101
No either or 15% or 7.5 % is not enough .If you were only to get 6 months jail out in 3 for trying to rob a bank . 20% to 30% of total mortgage is closer to the crime .why should they get off light ? Why again are heads not rolling?
 

Brendan Burgess

Founder
Messages
40,652
I will say it again, as it appears you are not listening.

The 7.5% and the 15% is an automatic, minimum payment of compensation, whether you have suffered any loss or not. It does not stop you seeking further compensation.

You can appeal it within the internal appeals process.
If you don't like their decision, you can go to the FSO or to Court.

Brendan
 
F

Freshstart

Guest
Sorry Brendan but the crux of the matter is it really doesn't matter if you suffered or not as a customer you were wronged!! Fraud was committed against you. Suffering because of the extent of this fraud makes it worse but isn't the point at all.
 

Brendan Burgess

Founder
Messages
40,652
It does matter.

Many people who were overcharged did not suffer any additional loss other than the overcharge. They will get back the overcharge plus compensation.

Some people who were overcharged suffered lot, and therefore deserve more than 15%.

If people committed fraud, then the level of compensation is not relevant. They should be punished through the normal court means of treating fraud.

But people who suffered should be compensated according to the level of their suffering.

Brendan
 
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Freshstart

Guest
Oh I'm all too aware of that Brendan and believe me those who suffered have not all been compensated accordingly for their suffering. However people with buy to let's could like be in awful positions due to this debacle so why should they be compensated half the amount. Victims for a second time.
 

Brendan Burgess

Founder
Messages
40,652
OK, I will say it a third time.

The minimum compensation which people with buy to lets will get is 7.5%.

If they feel that they deserve less, they will get the 7.5% anyway.

If they feel that they deserve more, they can appeal for more.
 

seamus m

Frequent Poster
Messages
101
Ah it shouldn't be for the people to have to pursue it further .The banks were caught Simple as. The punishment does not fit the crime .No lost jobs , very little redress .One has to remember that this was a conscious decision taken to screw the ordinary person that it does not matter , well sorry it does.
 

Sarenco

Frequent Poster
Messages
6,176
As Brendan has patiently tried to explain to you, compensation payments have absolutely nothing to do with punishing the banks concerned.

The Central Bank can impose financial and other sanctions on a bank if it determines that there has been a regulatory breach and can refer any suspected crime to the DPP. That is quite separate and distinct from any customer redress or compensation scheme.
 

Onceagain

Frequent Poster
Messages
139
As Brendan has patiently tried to explain to you, compensation payments have absolutely nothing to do with punishing the banks concerned.

The Central Bank can impose financial and other sanctions on a bank if it determines that there has been a regulatory breach and can refer any suspected crime to the DPP. That is quite separate and distinct from any customer redress or compensation scheme.
Can you forsee the Central Bank imposing fines on the main banks,I will hold my breath.
 

Brendan Burgess

Founder
Messages
40,652
We know that there are enforcement actions investigations being taken by the Central Bank into permanent tsb and Ulster Bank.

We don't know if there are any into any of the other lenders.

Brendan
 
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