...yes, you heard me correctly, undercharging
Received a letter from AIB this morning to say that, during our 12 month discounted tracker period, they had failed to adjust our payments in line with increases in the ECB rate. As a result we now owe them just over €1200 which they have now added to the balance of our mortgage (having first refunded roughly €50 to us to make up for interest already charged?).
My questions are these:
- Am I right to assume that this undercharged amount will have to paid, despite the mistake being on the part of AIB?
- Would there be any real and tangible benefit in paying the undercharged amount in a single payment, rather than over the course of the mortgage? I understand that it is not a huge amount but it would be a pinch for us as the moment with various bills and a wedding planned for early next year!
I'd appreciate your advice.
Received a letter from AIB this morning to say that, during our 12 month discounted tracker period, they had failed to adjust our payments in line with increases in the ECB rate. As a result we now owe them just over €1200 which they have now added to the balance of our mortgage (having first refunded roughly €50 to us to make up for interest already charged?).
My questions are these:
- Am I right to assume that this undercharged amount will have to paid, despite the mistake being on the part of AIB?
- Would there be any real and tangible benefit in paying the undercharged amount in a single payment, rather than over the course of the mortgage? I understand that it is not a huge amount but it would be a pinch for us as the moment with various bills and a wedding planned for early next year!
I'd appreciate your advice.