AIB AIB, tracker rate in contract, fixed - not getting my tracker back.

Brendan Burgess

Founder
Messages
37,953
The other issue has to be intent

There is no possibility anyone in AIB designed this contract to deny tracker customers the right to return to their tracker rate after fixing
They were encouraging customers to take trackers and the subsequent terms and conditions specifically protect the right to return to a tracker
So you are saying that AIB meant that those on trackers who fixed would go back to the tracker rate on expiry of the contract?

But the wording says that they will go onto the "variable rate" which they say varies in line with market conditions.

They did change Clause 3.2 later to say
upload_2016-11-29_16-50-24.png

But these guys are being put on 3.67%.


Brendan
 
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mister32

Guest
Brendan

When you say these guys are being put on 3.67%

What do you mean?

Does the contract not specify a rate?

By the way first two lines of my drawdown says

Term 25 years
Rate tracker ecb +1.1%
 

Maggiec

Registered User
Messages
7
I was on tracker and fixed for 3 years.
At the end of which I was not returned to tracker.
I asked to be put back on tracker even before the end of the fixed rate period.
I'd say there are thousands like me.

I had a particular rate eg 1.1% documented.
And the contract indicated for the life of the loan.
I was stunned when it was not returned to tracker and I have been in constant communication with the bank
Is there any update on this type of mortgage in the review process? Are there many involved in the pre-March 2006 situation?
 

Brendan Burgess

Founder
Messages
37,953
Brendan

When you say these guys are being put on 3.67%

What do you mean?

Does the contract not specify a rate?

By the way first two lines of my drawdown says

Term 25 years
Rate tracker ecb +1.1%
Hi Mister

But it also says that the mortgage will convert to a variable interest rate.

upload_2016-12-3_17-32-8.png


Some people have claimed that the contract says "ECB +1% for the life of the contract". I have not seen that explicit wording. If that wording is in a contract and conflicts with the "variable rate" wording, I would imagine that you would get the benefit of the doubt.

Brendan
 

joestrand

Registered User
Messages
14
Hi

Any update on pre March 2006 AIB trackers

Has anyone had decision one way or the other

Have AIB reviewed older tracker loans yet

My clause 3.5 states. Variable interest supplemental loan. In the case of a variable interest supplemental loan the interest rate applicable, at any time, will vary according to the prevailing rates set generally by thebank from time to time, subject to the terms and conditions hereof and the provisions of the letter of offer.

This seems to be different version to some other descriptions of a variable interest supplemental loan

My letter of offer describes the loan as a variable loan which is a tracker with a margin of x% above tracker rate

An update on whether any pre March 2006 tracker loans have been reviewed by AIB would be appreciated
 
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mister32

Guest
I already indicated Aib was effectively saying no to me back in November

My 3.5 clause is printed on the thread
Slightly different to you

I have replied to Aib a strongly worded letter to which I have yet to get a reply
 

Eamon Sweeney

Registered User
Messages
22
Hi, I took out a mortgage with AIB in Dec 2004 and the interest rate applicable was a Tracker rate of 2.95% (ECB + 0.95%) as stated in my Letter of Offer.

In Dec 2005 I fixed the rate on my mortgage for 3 years.

In Nov 2008 I received a letter from AIB stating that the fixed rate was due to expire and they outlined a list of sample interest rates that were on offer. (Tracker rate not mentioned)

I subsequently switched between variable and fixed rates until the present date.

I enquired with AIB if my mortgage was to be included in the tracker review process however they responded by saying that as Tracker Rates were not being offered by AIB in Dec 2008 (discontinued in Oct 2008), they could not offer me a Tracker Rate when my fixed rate term ended therefore they would not be returning my mortgage to the original Tracker rate.

They quote the original Terms & Conditions in my Letter of Offer.."The Bank in its sole discretion, at the end of any fixed rate period, may provide any further fixed interest rate period, but if it elects not to do so or the Bank offers the customer a fixed interest rate choice at the end of any fixed interest period and the customer fails to exercise this choice then the Mortgage Loan will convert to a variable interest rate Mortgage Loan"

I thought that my case was a typical example of the exact reason why the Central Bank initiated this Tracker Review process in the first instance. I have been told by AIB that I can appeal their decision to the FSO.
 
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mister32

Guest
Thing is they don't have a leg to stand on

The variable rate they quote is the tracker variable rate
 

joestrand

Registered User
Messages
14
Hi

AIB clearly as yet have not included or do not intend to include as part of the Tracker review those tracker mortgages taken out pre early to mid 2006

These mortgages should be included in Tracker review and I believe tracker mortgages were incorrectly denied to this cohort of customers

My AIB representative has told me my mortgage is yet to be reviewed under tracker review but clearly AIB are treating these mortgages differently to the mortgages taken out post mid 2006 which have a different set of terms and conditions

It is critical these earlier mortgages are included intracker review as then even if AIB refuse to return tracker mortgages the independent appeal process will be available.

The FSO may not be an option for many of these loans as many are likely to fall outside 6 year time limit
 

Eamon Sweeney

Registered User
Messages
22
Hi Joe,

Could you explain the independant appeal process as my Final Response Letter from AIB merely informs me of the option to appeal their decision to the FSO.
 

joestrand

Registered User
Messages
14
Hi Eamon

There is an appeals process for decisions made under the central bank directed tracker review

The details of this are provided on other previous discussions

If my tracker is not restored I will appeal using this facility first before deactivating my FSO complaint
 

Eamon Sweeney

Registered User
Messages
22
Hi Joe,

I thought that the appeals process only applied if you weren't happy with the offer a bank was making to redress the situation and that if the bank was rejecting your claim out of hand, you only had the option of outlining your case to the FSO who would then make a decision on the case. (I haven't actually seen a letter from a Bank with details on how to appeal the amount of compensation they're offering without prejudice)
 
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mister32

Guest
Please provide more information about this appeals process

And why then De activate FSO complaint?
 

joestrand

Registered User
Messages
14
Hi

The thread "Appealing the AIB" level of compensation has details on how to make an appeal

Apologies for typo
I had intended to say reactivate my FSO complaint which is currently on hold
 

Clarinda

Registered User
Messages
1
We are in the exact same position as Mister32. Tracker mortgage fixed in December 2005 for 4 years and not offered tracker at the end of the fixed rate. Our letters from AIB are identical. I have been told by AIB that our case has not been listed for review. I have gained more insight from this forum now as to why that may be - thanks all. Hopefully trackers issued prior to 2006 will be included in the redress going forward.
 
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mister32

Guest
First thing is the review

The central bank said all mortgages should be reviewed

That would include the trackers prior to 2006
 
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mister32

Guest
I spoke with the bank

Apparently the review of my account has not been concluded

There was confusion in both the letter and phone call before Christmas

The review is still ongoing

The letter only added to the confusion.

So the thread title should read:

Review Ongoing

Brendan can you update the title please?
 

Eamon Sweeney

Registered User
Messages
22
In my Final Response letter from AIB Home Mortgages after I raised the issue, they did state the following..
..."While we have made a decision in relation to your complaint, we want to let you know that separate to this, we are looking at the accounts of customers under an industry wide Tracker Mortgage Review, which the Central Bank of Ireland has asked all banks to do. This review is ongoing and should new information emerge affects your account, we will contact you. In any event, we will write to you again when the Tracker Mortgage Review is complete to confirm our position".

Notwithstanding the disappointing response I got from AIB Home Mortgages, I agree with mister32 above in that the review is still ongoing and all accounts have not been audited by AIB & KPMG (independant party to AIB review process) therefore in light of the above statement, I feel that AIB is leaving the door open to include our cases for redress over the next 6 months....fingers crossed.

I don't think it's worthwhile contacting the FSO at this stage until the industry wide review has been completed.
 
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