BOI, incorrect rate

Would it be possible to see the Oct 2007 Mortgage form of Authorisation, you should cover any identifying information.

It seems bazaar that you would choose the higher rate.
 
Would it be possible to see the Oct 2007 Mortgage form of Authorisation, you should cover any identifying information.

It seems bazaar that you would choose the higher rate.


I have a copy and I did choose the standard var rate due to bad advice. (not from bank)
 
I thought there may have been some ambiguity in the wording, but it appears that you knew what you were doing. I don't see any case here.
 
Its more the wording of '' for the term of the loan'' in post #8.

Ok here is another angle. Lets say I definitely ticked a box indicating a variable rate of 5.34% when my first year fixed term came to an end. Now observe this quote form my original loan offer ''if the lender offers the borrower a choice then in either case , in accordance with general condition 7(b) of the offer letter, the interest rate applicable to the loan will be a variable interest rate. This variable interest rate may vary upwards or downwards. the interest rate shall be no more than 1.25 above (repo rate) FOR THE TERM OF THE LOAN. The bit in bold in the part im interest in. If I fixed tomorrow for 1 year, should the bank offer me a tracker rate when that fixed term comes to an end?
 
From a legal point of view it depends on the contents of the Mortgage form of Authorisation in Oct 2007.

But for sure there is ambiguity, the original contract states what the rate will be for the term of the loan. If they didn't make it clear when you signed the Mortgage form of Authorisation in Oct 2007 that you could not go back to your tracker margin then, in my view this is a breach of the consumer protection code.

I would get Padraig Kissane, to fight this through the FSPO for you.
 
From a legal point of view it depends on the contents of the Mortgage form of Authorisation in Oct 2007.

But for sure there is ambiguity, the original contract states what the rate will be for the term of the loan. If they didn't make it clear when you signed the Mortgage form of Authorisation in Oct 2007 that you could not go back to your tracker margin then, in my view this is a breach of the consumer protection code.

I would get Padraig Kissane, to fight this through the FSPO for you.


Is this the form you are talking about? When I choose the standard variable rate it was never discussed regarding going to a tracker rate in the future. Should the bank have informed me when the tracker rate was been scrapped?

 
I can't see that the MFA states what the interest rate will be after the fixed period expires.

It does state the following at point 5.
"5. Save as set out in this Form of Authorisation, all the terms and conditions applicable to the Loan remain unchanged"

In my view the condition "FOR THE TERM OF THE LOAN" in your original agreement still stands.

I think you have a very strong case.

It also goes to show that the central bank is not on top of this, as Bank of Ireland believe that they have already found all impacted customers, and are not currently being challenged by the CB.

Please do keep us informed. I do believe that Padraig Kissane will get this tracker restored, I would not go to the FSO on your own.
 
I can't see that the MFA states what the interest rate will be after the fixed period expires.

It does state the following at point 5.
"5. Save as set out in this Form of Authorisation, all the terms and conditions applicable to the Loan remain unchanged"

In my view the condition "FOR THE TERM OF THE LOAN" in your original agreement still stands.

I think you have a very strong case.

It also goes to show that the central bank is not on top of this, as Bank of Ireland believe that they have already found all impacted customers, and are not currently being challenged by the CB.

Please do keep us informed. I do believe that Padraig Kissane will get this tracker restored, I would not go to the FSO on your own.

I will update of course. Its still double dutch to me. The P.kassane office can take a while to reply so ill sit tight.
Can I just clarify todo that after my fixed term came to an end I opted for the standard variable rate. I feel sometimes posters have not read the whole thread.
 
From the parts of the MFA you have posted I can't see that it states what rate you return to after the fixed rate period ends.

Therefore the original term of the loan should come into effect. Since your original terms contained "the interest rate shall be no more than 1.25 above (repo rate) FOR THE TERM OF THE LOAN." then I think you have a a very strong argument.

There is a consumer protection code, though its enforcement is questionable, also if there is any ambiguity then the benefit of that ambiguity should fall on-behalf of the consumer.

Banks of Ireland are supposed to be now customer centric, they way they have treated there own staff and how they continue to treat customers in relation to the tracker examination is in my view disgusting, they should be ashamed of themselves. I certainly wouldn't like to say I'm an employee of BOI.
 
Edit - seems they say that they can offer alternatives at end of fixed period .

However, in the original document its states that in absence of choosing another fixed rate your rate will move to 4.25% (rate at the time) variable which is ecb + 1.25%


Then in the document sent to you at the end of the fixed rate period it states that the rate you will rollover to is the standard variable rate.

So the second document is wrong and this is where I'd be looking for a correction to be made.


Btw a variable rate of 5.34% apr probably equates to a headline rate of 5.25%
 
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Edit - seems they say that they can offer alternatives at end of fixed period .

However, in the original document its states that in absence of choosing another fixed rate your rate will move to 4.25% (rate at the time) variable which is ecb + 1.25%


Then in the document sent to you at the end of the fixed rate period it states that the rate you will rollover to is the standard variable rate.

So the second document is wrong and this is where I'd be looking for a correction to be made.


Btw a variable rate of 5.34% apr probably equates to a headline rate of 5.25%


Will that correction benefit my case?
 
It should as then the default rate in the original fixed rate document should then be applied.

Why a default rate? In 2007 I choose the standard variable rate. Sorry for the questions I'm just trying to get this clear in my head .
 
Why a default rate? In 2007 I choose the standard variable rate. Sorry for the questions I'm just trying to get this clear in my head .

In post 20 in their response to you it states that the fixed rate contract stated that at the end of the fixed rate period the rate would go to a variable rate that would be 1.25% above ecb rate (a tracker). That is the default rate for when the fixed rate ended.

They then sent you an option list that stated if you did not make a choice, the rate would go to a standard variable rate.

This was incorrect and forced you to make a decision based on incorrect assumption. This letter should have stated that if you do not make a decision, your rate will go to a 1.25% tracker as detailed in the fixed rate instruction.

So as the information sent to you was incorrect, it should be withdrawn and you revert t the default position of a 1.25% tracker
 
Thank you peemac. That is very clear for me now. I'll try and get through to p.kassane office again tomorrow.

 
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