Compound interest

[Brian C]

I have just received a refund of interest from AIB due to an error that led to an overcharge of interest. The letter I received clearly states that the refund calculation includes the compounding of the interest from the date of the error.

It's a pity AIB don't apply the same approach to the tracker redress refunds.

 

[Brendan Burgess]

Hi Brian

That is very interesting.

Have you made a complaint on the failure to pay compound interest on the Prevailing Rate?

If so, I think it would greatly help persuade the Ombudsman why compound interest should be paid.

Brendan

 

[Brian C]

Hi Brendan, I am awaiting a final letter from AIB re my compound interest tracker complaint. So ultimately I will be going to the Ombudsman. Interestingly, the loan that I have received the compounded interest refund on is one of my two tracker loans. Also, the error dates back to around when the tracker issue arose. So not only am I dealing with the same tracker loan, one refund is compounded while the other isn't, but both arose around the same time. Nice synergy.