BoS paying Time Value of Money at ECB + 3%

[Brendan Burgess]

From a BoSI redress letter FAQ

Say ten years ago BoSI charged me a margin of 1.5% instead of a margin of 1% or €1,000 too much that year.

The following year, they charged me the mortgage rate on this which was probably ECB +1.5%

So I am getting the €1,000 back and interest at ECB + 3%

Seems very fair.

Brendan

 

[Brendan Burgess]

Also from their FAQ

HMRC make our guys look very reasonable.

 

[Banquo]

From a BoSI redress letter FAQ

View attachment 5123

Say ten years ago BoSI charged me a margin of 1.5% instead of a margin of 1% or €1,000 too much that year.

The following year, they charged me the mortgage rate on this which was probably ECB +1.5%

So I am getting the €1,000 back and interest at ECB + 3%

Seems very fair.

Brendan

Would I be right in assuming this should be compounded?

 

[Brendan Burgess]

Yes, and I would guess that they are doing so.

Brendan

 

[Banquo]

UB did theirs based on 3mth euribor with a 0.5% floor.