Has anyone received refund from Bank of Scotland regarding overcharging on tracker mortgage

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Angiestar

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Has anyone received refund from Bank of Scotland regarding overcharging on tracker mortgage
 
Ah, I see I commented on it here

List of all Tracker decisions upheld by Ombudsman

The Ombudsman has just published 25 Tracker decisions today [broken link removed] I have extracted the three substantially upheld decisions and attached them to this post. Here is my initial summary of them. The Ombudsman’s summary Upheld 8 Dismissed 17 Total 25 Only 3...
www.askaboutmoney.com

Bank of Scotland case

  • Started on a tracker of ECB + 1%
  • Fixed for 3 years
  • When fixing the documentation said “at the end of the fixed rate you will go onto the Standard Variable Rate”
  • Ombudsman held that they should also have spelled out “You will lose your tracker”
  • Told BoSI to restored the tracker at ECB +1%
  • Paid the borrower €2,500 compensation on top of the refund of €6,000 overcharged interest
  • Ombudsman referred the matter to the Central Bank as other customers impacted by the same decision
  • BoSI will apply the decision to all those affected
  • In 2018, BoSI sold these mortgages to Pepper and BoSI has agreed with Pepper to put them all on trackers
This is not as huge as it seems. The BoSI SVR was unusual in that it actually had a price cap of ECB + 1.5%. So the overcharge was “only” 0.5%. So the refund was only €6,000 in the actual case.

This is an example of a case, where the borrower would have been laughed out of the High Court if they had taken a case. The Ombudsman legislation gives him much wider discretion.
 
Brendan Burgess said:
This is not as huge as it seems. The BoSI SVR was unusual in that it actually had a price cap of ECB + 1.5%. So the overcharge was “only” 0.5%. So the refund was only €6,000 in the actual case.
Click to expand...

OK, it's a bit bigger than I thought because the customers will be getting a 0.5% reduction on their mortgage interest for the remainder of the term.

So, on a mortgage of €200k, it would be worth €1,000 a year - but falling as the capital is repaid.

Brendan
 
recieved a letter in June. Saying review was being carried out. Mortgage was instantly reverted to the tracker rate. Review and redress were to be completed by end of October. We were told to contact Pepper for any updates. However Pepper keep giving us various excuses not to update us. These vary from:
Our system is down and will be for a few days
We cant acutually see the account as its not on our system
One girl said it was on the system and the refund is significant, but cant discuss on phone and letter is on the way.
Having still recieved no letter we rang again to be told that they again cant see the account on the system and that letters went out last week and again this week and that the remainder of the cases will be completed by year end. They again have no way of telling us if our letter is one of the ones on the way. I have found Pepper useless to deal with and very dismissive when you phone. I pity anyone dealing with them through Mortgage arreas resolution!

Any way finger crossed it comes to a conclusion soon.
 
Gigidvn said:
These vary from:
Our system is down and will be for a few days
We cant acutually see the account as its not on our system
One girl said it was on the system and the refund is significant, but cant discuss on phone and letter is on the way.
Click to expand...

They make AIB sound professional!
 
Same, I have called Pepper today, they cannot find me on their system although the BOS letter advises contacting them with any queries. Frustrating.
 
AMS said:
Same, I have called Pepper today, they cannot find me on their system although the BOS letter advises contacting them with any queries. Frustrating.
Click to expand...


We decided to ring Bank Of Scotland directly this morning. They are claiming its gone from them and Pepper are dealing with it. When we said this to Pepper they said that they are only acting on the directions of Bank Of Scotland. Apparantly 650 cases. 150 have been dealt with to now. The rest will be sorted by year end.
 
Letter from Bank of Scotland this morning. Dates have changed we won't hear till end of the year.
 

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We also received our letter but it states in ours "We currently expect to be able to write to you and issue any redress and compensation due by March 2021."... A long wait from their original letter in June.

Also I note they have changed the contact details and it isn't Pepper now but Lloyds.
 
My contact details haven't changed, it's still Pepper.

I wonder if different letters went to people depending on how far into processing our files they are.
 
I have received a letter moving to Lloyd's as contact details. Also March before the redress is sorted. Rang the number and they said some of the accounts are more difficult to sort out. The difficult ones are out to March.
 
Received letter today, march 2021 given as new date for redress. Currently 11 year overcharge on account, and legal proceedings initiated.A despicable bunch ,,, cant even calculate monthly payments correctly
 
Hi bb

Could you give the details

1) Amount of refund of overcharged interest
2) Time Value of Money
3) Compensation if any

And the rough calculation e.g. "the rate was 0.5% too high for 10 years, so I got 5% of €200k or €10k"

Brendan
 
1) Amount of refund of overcharged interest: €115,972
2) Time Value of Money: 25,728
3) Compensation if any: 21,255
4) Advice Payment: €400
Total: €163,355

Tracker was: 0.7%
SVR: 1.50%
Over charged by 0.8%
 
This is incredible stuff. Ripped off for 11 years and now further avoidance and procrastination must break the spirit of what BB achieved, the deal with the CBI. What’s so difficult it’s taking BoSI this long? Why isn’t it getting out in the media?
 
I have a question as a new member here. I took out an interest only fixed rate home loan in 2007 and after it ended in 2008 I was switched to a BoSI SVR at 1.25% plus. I have now been informed the rate has been reduced from 1.4% to 1.25% going forward as I should have been on a tracker and that I will be compensated in due course whatever that means. I have also discovered that the BoSI tracker rate publicised for my type of loan in 2008 was 1.05% not 1.2%. What should I do? What compo am I likely to receive as it’s impossible to get an answer out of this lot? Could someone help?
 
Bbar1. In your calculation you cite actual figures for the svr, the tracker was 0.7%. Could you help shoe where you do you get these from to allow me calculate too
 
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