I'd love to see the calculations they used for someone who was in arrears..." If you pay the interest as it is due, then you were not charged interest on interest". This is very flawed.
I don't think the wording of the original ruling is clear enough to insist that AIB are doing this wrong without someone bringing it to the FSPO again.
I fully agree. When I looked at this first, I thought it was blindingly obvious what AIB should have done. But, I've re-read the wording a few times, and there might be some wriggle room for them if it was being strictly interpreted by legal people, as these things tend to be. But they've made a hash of explaining it, using the arrears case above as an example. From there you tackle an interest only case, and then the whole explanation falls apart very quickly. They'll trip themselves up with their own explanations.To be fair to the Ombudsman, it would never have occurred to him to specify that interest should be refunded on a compound interest basis. He would just have assumed it.
Fantastic observation and just shows how flawed the concept is. AIB tried to be smart here, it stinks and doesn't stand up to scruitiny.Basically using that logic, someone who DIDN'T repay will get a higher refund.
That's the best explanation yet its exactly what AIB are trying to say. Fine they can say it that way but I'll be arguing that the interest they acknowledge that they shouldn't have charged me should have come off the capital which they charged me compound interest on so I'm at a loss.I have never seen any other lender saying: "Well you paid the interest we shouldn't have charged you, so we didn't charge you interest on it."
Hi Squirreltown , sorry for delayed response . I simply followed the template provided by Brendan all along with Karens case . I had my case put on hold by the ombudsman following the successful outcome of Karens case and pending the payment of redress by AIB . Once i received the redress and was unhappy , i just sent the ombudman an email saying that i was unhappy how the interest was calculated . I asked AIB for a final response which AIB sent and i posted here . We ( myself and AIB ) have now agreed to enter a Dispute Mediation Process .Hi greenbean - could you share (part of ) your letter to ombudsman as it would be great to use as a template for myself and anyone else that wants to appeal the simple interest explanation by AIB
I am beginning this process also. curious as to where you are at with this... have agreed to the informal mediation process. Simple v compound interest issue is part of my grievance.Hi Squirreltown , sorry for delayed response . I simply followed the template provided by Brendan all along with Karens case . I had my case put on hold by the ombudsman following the successful outcome of Karens case and pending the payment of redress by AIB . Once i received the redress and was unhappy , i just sent the ombudman an email saying that i was unhappy how the interest was calculated . I asked AIB for a final response which AIB sent and i posted here . We ( myself and AIB ) have now agreed to enter a Dispute Mediation Process .
An ombudsman official is due to ring me on Tuesday regarding this Mediation Process . Has anyone been through this process before ? Any advice on how i should present the simple vs compound issue on the call ? Any help would be appreciated , thanks
The only advice i would give anyone dealing with AIB on this issue is to keep your argument as straightforward as possibleI am beginning this process also. curious as to where you are at with this... have agreed to the informal mediation process. Simple v compound interest issue is part of my grievance.
Hi Rustbucket , haven't heard a thing , nothing to do but wait ........ I will post whenever i do get any further update / decision@Greenbean did you ever get a decision on this from the ombudsman?
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