AIB Broke out of a fixed rate - got the €1,615 in compensation

Ericson

New Member
I am in the process of filling in my appeal and I see from my files that I was offered a number of different rates at the end of my one year fixed term in June 2007. I was on interest only for first 2 years.
The relevant tracker rate at the time I was offered was 5.1% (Tkr Hm IntOnly LTV>80% Ln<500K). Does that negate my grounds for appeal as I was offered the "prevailing rate" at the time.
 

Ericson

New Member
I am in the process of filling in my appeal and I see from my files that I was offered a number of different rates at the end of my one year fixed term in June 2007. I was on interest only for first 2 years.
The relevant tracker rate at the time I was offered was 5.1% (Tkr Hm IntOnly LTV>80% Ln<500K). Does that negate my grounds for appeal as I was offered the "prevailing rate" at the time.
I actually notice that subsequent to that I did the following:
· September 2007- Availed of fixed rate at 4.90% for three years.

· November 2008 – Availed of Variable Interest rate of 4.50%.

· October 2009 – Availed of 3 year fixed rate of 3.19%.

Am I right in assuming that the reason I was included in tracker review and got the €1,615 was that I was not offered the prevailing tracker rate in 2012 when fixed rate expired and should appeal on that basis??
 
Hi Ericson

AIB stopped offering trackers to people coming off fixed rates in October 2008.

1) When your first fixed rate ended in June 2007, you were correctly offered a tracker.
2) You fixed again In Sept 2007 for three years which would have ended in Sept 2010
3) You say you availed of a variable rate in Nov 2009. Did you break the three year fixed rate to avail of that?

Brendan
 

Ericson

New Member
Thanks for reply Brendan. Yes I broke fixed rate in Nov 2009 as Variable rate was lower at the time. I had friend who was manager in Aib at time and I think he was was keeping me up to speed with changing rates. To be honest I had forgotten how often i changed rates!!
 
OK

So, in November 2009, your fixed rate "ended" and you should have been offered the choice of a tracker.

So you should say this in the form. Your case is a bit different. You proactively broke out of a fixed rate to save money. They should have offered you a tracker.

They might argue that you lost the right to a tracker by breaking out early, but I doubt it. ptsb tried that which is what triggered the whole tracker issue.

Brendan
 

verywhys

Frequent Poster
I actually notice that subsequent to that I did the following:
· September 2007- Availed of fixed rate at 4.90% for three years.

· November 2008 – Availed of Variable Interest rate of 4.50%.

· October 2009 – Availed of 3 year fixed rate of 3.19%.

Am I right in assuming that the reason I was included in tracker review and got the €1,615 was that I was not offered the prevailing tracker rate in 2012 when fixed rate expired and should appeal on that basis??
I would think the reason you were included was because you should have been offered the tracker in 2012 when your fixed rate expired....i am not sure that you were entitled to be offered anything when you broke out of the fixed rate in 2009 as your were requesting to be put on the variable rate and your fixed rate had not yet expired....it would depend on the wording in your contract.
 

Ericson

New Member
Great to hear you on SOR today Brendan and thanks for keeping this case in the public domain. I have taken yours and verywhys views above on board and am appealing on the basis that I was not offered a tracker rate in October 2012 per clause 3.2 of my mortgage contract as:

At the end of any fixed interest rate period, the customer may choose between:

a) A further fixed interest rate period, or

b) Conversion to a variable interest rate Mortgage Loan, or

c) Conversions to a tracker interest rate Mortgage Loan,

At the bank’s then prevailing rates appropriate to the Mortgage Loan. If the customer does not
exercise this choice then the Mortgage Loan will automatically convert to a variable interest rate
Mortgage Loan.


Appeal will be in post today.

 
Top