Was this a very big mortgage do you know, not looking to know the exact figure, I received a letter stating I will be have a final figure in December.
Has anyone received refund from Bank of Scotland regarding overcharging on tracker mortgage
- Thread starter Angiestar
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Was this a very big mortgage do you know, not looking to know the exact figure, I received a letter stating I will be have a final figure in December.
I am still unclear about the "tracker" part. I had a margin of 1.25% over ECB. Pepper told me that as ECB was now zero my all in cost was now 1.25%. Therefore, are you saying that you had a margin of just 0.7% over ECB? Secondly, how was the compensation element calculated?
Yes, it was over a mill.
got my letter today from Pepper saying I will have news in December 2020!
I am still interested in how to calculate a possible refund. I borrowed say €1m, interest only for 20 years. I commenced with a fixed rate for year one at a margin of 1.05%. Bosi then put me back on a SVR+1.4%. They recently put me back on a tracker at ECB+1.25%. However, I see BBari1's example but it says the tracker was 0.7%, was that including ECB which if so suggests a 0.7% margin, but mine seems much higher than that. I am confused. Can someone help me calculate it correctly?
I am still interested in how to calculate a possible refund. I borrowed say €1m, interest only for 20 years. I commenced with a fixed rate for year one at a margin of 1.05%. Bosi then put me back on a SVR+1.4%. They recently put me back on a tracker at ECB+1.25%. However, I see BBari1's example but it says the tracker was 0.7%, was that including ECB which if so suggests a 0.7% margin, but mine seems much higher than that. I am confused. Can someone help me calculate it correctly?
Brendan Burgess
Founder
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Did you read your letter of offer? If it specified a margin of 1.25% that is what you will get. The expression "SVR +1.4%" doesn't mean anything. Their SVR had a cap of ECB +1.5%.
So if you were on 1.5% but should have been on 1.25% , then you will get .25% a year which I have seen others get.
So your rough refund would be: 10 years @ .25% = 2.5%
2.5% of €1m would be €25,000
Mitzy reported the following :
"It seems that I was overcharged approx €500 per annum for 11 years. They gave a breakdown of the interest paid each year v's what should have been paid so it is very clear from the documentation.
Time value of money was about €1,350."
So she got €1,350 TVM on €5,500 or 25%
So your TVM would probably be : €6,000
Compensation would be 15% of €31k or €4,500
This is very rough.
Brendan
So if you were on 1.5% but should have been on 1.25% , then you will get .25% a year which I have seen others get.
So your rough refund would be: 10 years @ .25% = 2.5%
2.5% of €1m would be €25,000
Mitzy reported the following :
Received my compensation from Bank of Scotland
I received a letter from BOS last week saying that they were still assessing my case & that I should expect to hear by the end of December. This morning I received a refund cheque of the overcharge on my account with compensation. Pepper had previously advised that the portion of overcharge was...
www.askaboutmoney.com
"It seems that I was overcharged approx €500 per annum for 11 years. They gave a breakdown of the interest paid each year v's what should have been paid so it is very clear from the documentation.
Time value of money was about €1,350."
So she got €1,350 TVM on €5,500 or 25%
So your TVM would probably be : €6,000
Compensation would be 15% of €31k or €4,500
This is very rough.
Brendan
Anyone more got their redress cheques from Pepper? I have received a further delay letter to end December 2020 but just called them and they couldn't tell me how much or when? I doubt they are going to keep their 3rd commitment to me which is astonishingly bad!
Brendan Burgess
Founder
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Hi Wuffit
I have had no role in this particular case. Other than generally highlighting tracker issues and trying to make sure that the Central Bank agreed that Ombudsman's decisions would be rolled out to the rest of the customers in the same cohort.
I really don't think you can do much but wait. Covid has delayed everything.
If you are prepared to put your photo in the paper and tell your story using your own name, I am sure that a journalist like Charlie Weston would be happy to tell your story to highlight the issue. He probably wouldn't be as interested in an anonymous story.
Brendan
For everyone due in December? I was due for remediation in December but got a letter Christmas week saying it would be sometime before end of March......
I’m also interested in how they arrived at your figures. I took my mortgage out in 2006 with BOSI for €320k.
Interest was paid for 10 years at almost .05% more than it should. Over 10 years it amounted to an overpayment of 15,955.77 then they add on 3359.18 for time value of money, then added 15% compensation of 2897.24 and also financial advice payment of 400 total received 22,612.19
Pepper are just saying we will hear from BOS before the 31/03/2021 regarding any further actions... It seems it is a waiting game for those who have not already received their compensation. Pepper mentioned they maybe dealing with the queires in alphabetical order. Who knows!!
Winter Miles
Registered User
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I'm in the S (forename and surname) category and got mine back in Dec /Jan. Pepper have no involvement in the processing. It's all BOS.
Playing the waiting game is the hardest part..
Playing the waiting game is the hardest part..
I'm before S (forename and surname) and have been told by 31.3. It doesn't look like their going alphabetically, unless they started at Z and are working backwards
Received my overcharged interest payments and compensation before the weekend. My query is how do I know if I am getting the right amount of compensation or not.
Because based on this case study 3 example attached from the central bank. This person was over charged 0.5 % for 2 years and got compensated approx €2000.
My situation is
1) Amount of refund of overcharged interest: €7535.62
2) Time Value of Money: €1518.70
3) Compensation if any: €1358.15
4) Advice Payment: €400
Total: €10,812.47
Based on these numbers compared to case study 3, her mortgage would need to be 4 to 5 times more than my mortgage
Because based on this case study 3 example attached from the central bank. This person was over charged 0.5 % for 2 years and got compensated approx €2000.
My situation is
1) Amount of refund of overcharged interest: €7535.62
2) Time Value of Money: €1518.70
3) Compensation if any: €1358.15
4) Advice Payment: €400
Total: €10,812.47
Based on these numbers compared to case study 3, her mortgage would need to be 4 to 5 times more than my mortgage