I agree that BOI's definition of a variable rate is very misleading as that clause 7B is included regardless of the type of variable rate.
They rely on special conditions to further define the rate, but if no special condition is included I can see how a consumer could easily think they are on a different type of rate.
When did you take out the mortgage?
Were you on a tracker and then fixed, and then at the end of the fixed period they put you on svr?
If you were on a tracker and then fixed, then you have a very strong case as your original contract will have the special condition. I would use that special condition as the basis for the definition of what a "Variable Rate" is.
The text you have underlined is very interesting and I think you have a case, BOI should have spelled it out in clear plain simple english what variable rate the mortgage should return to once the fixed period ended. In my opinion just saying it will return to a variable rate is not definitive enough, particularly when they at the time were using that term to describe a number of different mortgage types.
Hey Toto took the mortgage out in Sept 2005 no special condition. Regarding the variable rate the one on my offer letter dated Aug 2008 stated that the variable rate of 5.5% would be applied to the mortgage automatically if I did not select an offer by Sept 2008 and this 5.5% represented the tracker and not the SVR. Central Bank need to tackling BOI on the wording of Variable Rates as I feel they can use whatever rate suits them and not the customer.
Would you do a data protection request on BOI to see what information they have - or do not have as the case may be?
What did your fixed rate agreement say and what did your original mortgage contract say - in mine, with Ulster Bank, for example, it stated that the tracker was for life of the mortgage & did not specify any conditions, such as fixing where you would be at the loss of this tracker rate.
The Ombudsman then found that I should have therefor defaulted on to the tracker rate at the end of the fixed period
If a contract is ambiguous the law favours the party who did not draft the contract as the other party drafting it had every opportunity to put exactly what they required in the contract.
In my opinion BOI are in breach of the Central Banks Consumer Protection code.
Principle 2.6 states "makes full disclosure of all relevant material information, including all charges, in a way that seeks to inform the customer"
Your offer letter in August 2008 should have defined what type of "Variable Rate" would be applied.
In my opinion BOI are in breach of the Central Banks Consumer Protection code.
Principle 2.6 states "makes full disclosure of all relevant material information, including all charges, in a way that seeks to inform the customer"
Your offer letter in August 2008 should have defined what type of "Variable Rate" would be applied.[/QUOTE
Exactly.
Well in my opinion it does because 5.5% represented the tracker variable rate in the rates box on offer letter but BOI just have variable rate of 5.5% below box as what we would default to if we didn't select a rate ourselves.
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