EBS EBS update Dec 2017

EbsLoannotrafor

Frequent Poster
Thanks , the overall principle will be reduced in addition to redress also and then there’s compensation for changes to lifestyle , using a pension early etc that would not take place if there hadn’t made the mistake and then I want the interest for the use of my money they had while I didn’t have the use of it !!...
 

Truffade

Registered User
We might be! I have no idea what they are trying to do and it's clear as mud from their crappy online system.

This 'BD refund' item popped up on Weds.

Say it was for X

The mortgage balance has gone down by approx 50% of X. And the monthly payments have gone down (again, after the initial reduction 2 months ago).

So, until I get a letter, I'm somewhat in the dark but the activity to date leads me to think it'll be both a principal reduction and a cheque.
 

Truffade

Registered User
Actually, here's a question:

Since coming off fixed in 2011 and (mistakenly) being put on SVR, I paid approx 110k early off the mortgage in various chunks. At the time, this seemed like a sensible thing to do but I was on tracker, I would definitely NOT have made these payments and would have invested the money instead. And would have made a very good return if you look at market performance.

Anyone think I have a case for additional redress here?
 

peemac

Frequent Poster
Thanks , the overall principle will be reduced in addition to redress also and then there’s compensation for changes to lifestyle , using a pension early etc that would not take place if there hadn’t made the mistake and then I want the interest for the use of my money they had while I didn’t have the use of it !!...
If its the same formula as kbc, you will get refund of overpayment, a drop in the balance, compensation and "time value money" which is interest on the overpayment.
The kbc document sent with the refund was very detailed, hence very few if any queries.

Hopefully the ebs document is as clear
 

Truffade

Registered User
If its the same formula as kbc, you will get refund of overpayment, a drop in the balance, compensation and "time value money" which is interest on the overpayment.
The kbc document sent with the refund was very detailed, hence very few if any queries.

Hopefully the ebs document is as clear
Presumably it would follow the AIB process, given that they are the same institution.

Has anyone got the link to how they calculated their numbers?
 

bilbow

Registered User
Truffade have you had any update, i am in a similar situation, noticed a BD Refund amount online although there seems to be no change to my mortgage balance, my term has gone up by 8 years?? and my monthly repayment reduced again. I've heard nothing from EBS
 

EbsLoannotrafor

Frequent Poster
Hi everyone , I rang the redress helpline , they had the updated balance ( lowered it)for me x and interest overcharge is twice 2x roughly that for anyone wondering , no figure for compensation , legal advice , time etc yet .
Bit overwhelming .
 

RajR

Frequent Poster
bilbow, I too see a "BD Refund" entry online dated 22nd Aug. My understanding is, the mortgage balance will only be reduced by any overcharged amount that you didn't actually pay. This applies if you weren't paying your full mortgage repayments or were in arrears. Any overcharged amount that you did pay, will be refunded along with compensation by cheque. If you were keeping up to full repayments or were not in arrears then you would get a full refund of the overpaid amount along with compensation etc., and balance won't be reduced in this instance. I was told by the helpline that redress letters will most likely be out in the next couple of weeks.
 

Bikini Widow

Frequent Poster
Hi all,

I also contacted the helpline
1. Mortgage reduced (couple of grand less that I had ballparked)
2. Monthly repayments then down slightly more due to above mortgage correction.

With the reduction from the initial announcement last July to this one it will make a huge difference to family. No further information on redress, interest etc..

Many thanks to all,
BW
 

Truffade

Registered User
Truffade have you had any update, i am in a similar situation, noticed a BD Refund amount online although there seems to be no change to my mortgage balance, my term has gone up by 8 years?? and my monthly repayment reduced again. I've heard nothing from EBS
No comms from EBS but seems like we're close to letters. In summary, from looking online:
  • My term is the same.
  • Monthly payment is down. Again.
  • Mortgage principal is down (confusingly by an amount completely different to the 'BD Refund')
But I have no backup for any of this in the online 'system' (I hesitate to dignify it with this title). Or any idea of how much the cheque will be.

So the waiting continues!
 

Truffade

Registered User
bilbow, I too see a "BD Refund" entry online dated 22nd Aug. My understanding is, the mortgage balance will only be reduced by any overcharged amount that you didn't actually pay. This applies if you weren't paying your full mortgage repayments or were in arrears. Any overcharged amount that you did pay, will be refunded along with compensation by cheque. If you were keeping up to full repayments or were not in arrears then you would get a full refund of the overpaid amount along with compensation etc., and balance won't be reduced in this instance. I was told by the helpline that redress letters will most likely be out in the next couple of weeks.
We made full payments all the way and yet, they reduced our balance last week - so (probably not surprising) their words and actions don't tally.
 

RajR

Frequent Poster
Sorry Truffade, my bad. There would be a balance adjustment as well to reflect what your mortgage balance would have been if correct tracker rate was applied all along. In your case, as you were meeting full repayments, you should get a cheque for the full overpaid amount + compensation + legal fees etc., along with an adjustment to the balance. Based on AIB redress process, most of us should see a combination of balance adjustment + refund cheque. only case balance reduction may not happen is, if account is deeply in arrears and arrears exceed overcharged amount.
 

peemac

Frequent Poster
There's a difference between the "overpayment" and "overcharge"

As interest applies on a reducing balance and the aim is to keep payments identical for the term (if interest rate stayed the same)

But as rates change, this is an ever-changing calculation and it all has to be calculated based on what the correct rate should have been.

If you play around with https://www.amortization-calc.com/ you'll see how different rates affect a balance on the same specific forward date.
 

RajR

Frequent Poster
Hi All,

Latest update from the tracker helpline today. The lad I spoke to advised that, the "BD Refund" amount we see online is the actual overpayment that you can expect to receive as refund by cheque and is separate to any balance reduction you see online. This excludes compensation + time value money + legal fees. He also said, these numbers are being verified by KPMG and once they sign off, formal redress letters will be sent out along with refund cheque. He noted that, these numbers are subject to KPMG review & sign off and hence could change, though less likely!

RajR
 

Truffade

Registered User
Hi All,

Latest update from the tracker helpline today. The lad I spoke to advised that, the "BD Refund" amount we see online is the actual overpayment that you can expect to receive as refund by cheque and is separate to any balance reduction you see online. This excludes compensation + time value money + legal fees. He also said, these numbers are being verified by KPMG and once they sign off, formal redress letters will be sent out along with refund cheque. He noted that, these numbers are subject to KPMG review & sign off and hence could change, though less likely!

RajR
That actually makes perfect sense Rajr

That 'BD Refund' + the mystery principal reduction last week is a number very close to the one I had calculated.

Good!
 

Bikini Widow

Frequent Poster
Hi RAJR,

I am confused. If I got.... for simple example as bd refund

1. 50 euro lodged as “credit interest overcharge”
2. Then 30 euro taken of as “overpayment”

My overall mortgage was then reduced by 20 euro

How does this align with your statement?

Many thanks,
BW
 

bilbow

Registered User
All my payments have been made on time and in full. I have actually been over paying from the beginning which reduced my term by 7/8 years, since the BD Refund popped up my term has gone back up by the 7/8 years (back to what it would have been had i not of been over paying). My monthly repayments have reduced significantly (nearly by the same amount as when i got put back on the tracker) but the principle has not changed. I am totally confused and to make it worse have been told different things each time i ring the helpline.
 

EbsLoannotrafor

Frequent Poster
Hi ,
I asked them what
1. is the new principle from now on
2.
What my interest refund is ( what definitely will be in cheque)
3. Compensation , legal fees etc to be determined I understand .But will not be a large amount compared to 1 and 2 points above .
4.
New monthly repayments from now on

Then you will have the bulk of the information .
Hope this helps!
The waiting to actually see it in black and white is long awaited and unfair , but they are suiting themselves to have the numbers in the quarterly returns that suit them .... any surprise ...
 
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