Bank of Ireland Staff- Lost Tracker

Discussion in 'Issues with tracker mortgages' started by Onceagain, Nov 28, 2015.

  1. Onceagain

    Onceagain Frequent Poster

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    If you write to them, they have to write back

    Tedtalk, if that's the case why didnt they say that in their letter dated 13th Feb 2017.
    "This is to let you know that the Tracker Mortgage Examination is still under way. However, please be assured that we are working on the matter as quickly as possible and I will be in contact with you within forty working days from the date your complaint was received.".

    The next letter may well say no your not getting it back and they know that now, but for some ailen reason that is not being communicated now. Who knows.
     
  2. Tedtalk

    Tedtalk Registered User

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    If it's any help I had a conversation with the tracker team back in nov and they said to me if an issue is identified I'll be informed otherwise I'll get a 'final response' near end of process. Hope that helps
     
  3. Mickon

    Mickon Registered User

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    Boi had a dilebrate stragety to get people off trackers when they put clauses in their MFA putting them back on SVR in 2006 not as most people think 2008 onwards it only became apparent in 08 09
     
  4. Tedtalk

    Tedtalk Registered User

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    V interesting Mickon but weird as Boi managers were still flogging trackers in 07 and 08. It may be reason the Boi reinstatement no is so low.
     
  5. Mickon

    Mickon Registered User

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    They had to to be competitive with other banks they also knew they would get you off it at some stage people would fix or change terms.
     
  6. Sarenco

    Sarenco Frequent Poster

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    I wouldn't agree that BOI has a particularly low restoration rate compared to other lenders.

    Don't forget that, in addition to the 602 accounts recently identified as part of this review process, BOI previously restored trackers to 2,096 accounts back in December 2011 as a result of an earlier review.

    I do agree with you that it seems completely fanciful to imagine that BOI were far-sighted enough in 2006 to take steps to trick anybody out of trackers that they would otherwise be entitled to once their fixed terms expired when you consider that they BOI continued to offer trackers as late as September 2008.
     
  7. Hogmeister55

    Hogmeister55 Registered User

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    I would agree. I would doubt BOI deliberately started out to do this. This makes the situation even worse.

    Through incompetence they sold a product without understanding it could bring down the bank or at least cost them a fortune. Despite paying a CEO 2 million a year they didn't understand fundamental banking principles of risk.

    When they did work it out with the help of a few ECB rate cuts they decided to use their own interpretation of contractual and consumer protection laws to try and cover their tracks. Leaving thousands of customers on the hook for it.

    2698 people have already proved that.
     
  8. Sarenco

    Sarenco Frequent Poster

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    BOI are currently earning a spread of around 40bps on their tracker book (i.e. it's a profitable book of business).

    The major problem that all our banks are still grappling with are horrendous default rates.
     
  9. Mickon

    Mickon Registered User

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    Last edited: Feb 17, 2017
    They knew before that as part of their risk management otherwise why would they go to so much bother with their clause MFA especially when offer letter stated for the life of the loan. People didn't know what tracker was it was only referred to as variable (repo) +% . The bank had no control over these rates themselves and left them venerable so they decided to get us back on their own variable rate where they can charge what they want,their main objective is profit not you,me,or even ther employees.
    If it was the ECB rate that had risen they could have us held accountable for the term of the loan not allowing you rates under that.
     
    Last edited: Feb 17, 2017
  10. Pinesky

    Pinesky Registered User

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    This post is complete fiction . Nobody in BoI attempted to "relieve " customers of their trackers before Autumn 2008
     
  11. Pinesky

    Pinesky Registered User

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    "Through incompetence they sold a product without understanding it could bring down the bank or at least cost them a fortune. Despite paying a CEO 2 million a year they didn't understand fundamental banking principles of risk" .

    This is also completely incorrect . Most of the senior management , including the CEO , were around in 1992 during the EMS crisis and the devaluation of the Irish Punt . A similar divergence occurred then between Official Rates and Market Rates and the interest rate risk inhererent in the tracker offering was well understood. The duration of the divergence was underestimated . However the only game in town between 1999 [the arrival of Bank of Scotland Ireland ] - 2008 was market share ,even though this ultimately meant following competitors over the cliff .
     
  12. Mickon

    Mickon Registered User

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    Why then put provisions in place not allowing the loan to default back to the original loan offer in their MFAs ? I'm not talking about the staff in branch it came from the top of the tree.
     
  13. Pinesky

    Pinesky Registered User

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    Are you referring to staff MFAs or MFAs for "ordinary" customers ?
    The 5 cases of "ordinary " customers , that I assisted with , who went on 3 year fixed in 2006 , had their requested return to their original tracker margin denied in 2009 but all were subsquently returned to their original tracker margin .
     
  14. Onceagain

    Onceagain Frequent Poster

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    Staff are "ordinary customers".
     
  15. Pinesky

    Pinesky Registered User

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    Not according to Revenue . This seems to have been a huge hang up for BoI .
     
  16. Mickon

    Mickon Registered User

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    I wish I had been one of your customers I fixed in 2006 for 3 years lost tracker because of this.
     
  17. Pinesky

    Pinesky Registered User

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    are you staff ? Don't give hope yet . There's a good bit to go in this process yet . Pauric's presentation to the Oireachtas will turn up the heat on the Banks . Best of luck .
     
  18. Sarenco

    Sarenco Frequent Poster

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    I assume we are still talking about BOI staffers that switched from a tracker to the discounted staff variable rate before fixing?

    The fact that the staff variable rate did not track the ECB refi rate was actually presented as a benefit of the product -
     
  19. Hogmeister55

    Hogmeister55 Registered User

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    Just like a fixed rate doesn't track the ECB rate.
     
  20. Mickon

    Mickon Registered User

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    No I'm not staff but surely you should be treated the same as (ordinary) people at least I hope Pauric will shake things up a bit in the oireachtas we live in hope.
     
    Onceagain likes this.