Bank of Ireland Bank of Ireland paying me only 220 compensation

hedonaut

Registered User
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5
I received a letter from BOI this morning with details of the refund and compensation that I am due. The refund is around €4k but the compensation is only €220.

This seems ridiculously low and I would be interested to hear from any other BoI customers who received a similar letter.
 

hedonaut

Registered User
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5
FYI, this refund and compensation was in relation to me being put on the incorrect ECB margin after coming off a 2 year fixed rate.
 

cremeegg

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2,886
If the compensation is in relation to you having been without the money for a period of time it may well be reasonable. €220 is 5.5% of €4,000. You don't say how long you were at a loss.

If you any other loss arising from not having the money when you should have you may be able to look for more.

In my own case I had an unpaid bill because of money not passed on to me from the bank. I was able to claim several hundred more for the embarrassment caused.
 

hedonaut

Registered User
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5
It was for a period spanning 8 years. Since BoI are not obliged to compensate me at all, I suppose I should be happy with the €220 but it seems like very little sanction for them effectively taking money off me for years. Compounded, this compensation doesn't even cover the interest that I might have earned in a savings account.
 

RedOnion

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3,132
Compounded, this compensation doesn't even cover the interest that I might have earned in a savings account.
The refunds calculated in these scenarios already includes interest at the rate at which you were charged, from the date of overcharging.
The compensation is over and above that.
 

MrEarl

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1,725
....Compounded, this compensation doesn't even cover the interest that I might have earned in a savings account.
You've obviously not been watching BoI's deposit rates, if you believe that ;)

In such a low interest rate environment, it's difficult to see anyone getting significant compensation unless then can actually prove specific damages caused by loss of the additional funds charged by BoI (or any of the other Banks involved in this mess), or where charged a large additional amount over a particularly long period of time etc.
 

MrEarl

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Out of interest....

Are these compensation payments going to generate a tax liability for people ?
 

hedonaut

Registered User
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5
Thanks for the info. I still don't see any significant sanction/penalty for BoI in this. It seems like it is worth their while to make this mistake again in the future, seeing as they can lend that money out at 12%+ APR
 

Sarenco

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5,499
I still don't see any significant sanction/penalty for BoI in this.
The compensation payment to impacted borrowers is not meant to be a sanction or penalty.

The Central Bank has other powers to impose sanctions on regulated entities.
 

Threadser

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218
Just to clarify is this refund for someone who was given a tracker following a fixed rate period but this tracker was on an incorrect margin?
 

Emma3003

Registered User
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19
I also received my letter from Bank Of Ireland today.

They gave a breakdown of the payment they are making, which is made up of:
1. Refund of money overcharged
2. Interest on overpayment
3. Compensation

They have deducted TRS overpayment from that amount, and there is no offer of payment for independent financial advice, as they claimed there would be in their initial letter.

Has anyone else been offered any payment towards the financial advice? Is it just me that isn’t getting that?
 

Threadser

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218
I am a bit shocked to hear that they have deducted the TRS overpayment. I thought Pascal had assured customers that the bank would be liable to repay that to the revenue. And I also understood that they had to make a mandatory payment for independent financial advice.Can you give us a rough idea of your figures Emma?
 

Emma3003

Registered User
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19
Hi Threadser,

My overpayment is only small in comparison to some people here.

I was overcharged 0.15% over an 8 year period, resulting in an overpayment of just over €2,200. They have offered €40 in interest and €80 in compensation.

€600 has been deducted to pay TRS, which was a shock to me also. I assumed when they said that the banks would be liable for sorting out TRS payments, that they would actually take the hit... not that it meant they would just take it off us, to pay revenue. But sure, why would they do that? It’s not like we can expect them to bear the brunt of their own actions of anything.
 

Threadser

Frequent Poster
Messages
218
Thanks for the info Emma. The compensation amount they have offered you is paltry. I wonder will all the other banks deduct the TRS overpayment from the refund? It will be interesting to hear the reaction from customers who have been waiting far too long for this refund.
 

Emma3003

Registered User
Messages
19
Hi Brendan,

I didn’t have a figure in mind, but had heard 10% mentioned, so BOI are clearly offering nowhere near that.

Whilst our overcharge seems like peanuts in comparison to the overpayments others have had to endure, this money was taken from us at a time when my husband was out of work and we were seriously struggling.
The overcharge wasn’t the cause of our hardship, and we would have struggled regardless BUT that extra few euros would have certainly been welcome. It might have bought a bag of coal or put some diesel in the car.
In terms of the impact on us, the result of the overcharge was minor and I don’t consider myself deserving of any big payout, unlike some other people are.

On the other hand, the bank overcharged us for 9 Years! The compensation just doesn’t seem proportionate to that fact. The only reason that they are getting away with offering such low amounts is because of the sheer number of people that are impacted.

They haven’t specified what rate they have used to calculate the interest or compensation, but what i would like to know is if they have calculated them before or after deducting the TRS. Surely, they can’t get away with the latter?
 

Clamball

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Messages
78
Same as revenue,

Money back
100% penalty
8% per annum interest

Revenue set penalty and interest to let tax payers know if you don’t pay your proper tax and we catch you and you don’t cooperate then we will penalise you.

The banks should do this in reverse, we took €2200 from you, so here it is back with 8% interest per year we prevented you from enjoying your own money and €2200 compensation, Sorry.

I think this is fair, based on a principle set by the revenue, and would demonstrate to everyone how wrong they were to the customer.
 

hedonaut

Registered User
Messages
5
Now now Clamball, I'm sure that the central bank will hit them where it hurts ...... an even more strongly worded letter.

In the meantime, they can continue to take money off people at 0.5% APR and loan it out at 12% APR.
 
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