AIB How much is the compensation for 300 customers?

[Jumping Jenson]

No cheque or letter received in the post from AIB yet.

Called AIB and they said I am part of a group of 300 who will receive a cheque now for a fixed amount of EUR5k with the balance to follow with a letter in October.

Can I ask Brendan please how much I should reasonably expect to be written down and in interest repayments on a mortgage in 2008 of EUR200k.

 

[jomo2020]

Jumpign Jenson, I'm part of the 300 group also and received my letter from the Bank today along with a cheque of €31k on a mortgage of €178k. The letter advised that they will write again within 2 months to advise whether i am due further redress as a result of being part of the group who rolled off fixed rate shortly after the the trackers were withdrawn.

 

[Johnno75]

Jumpign Jenson, I'm part of the 300 group also and received my letter from the Bank today along with a cheque of €31k on a mortgage of €178k. The letter advised that they will write again within 2 months to advise whether i am due further redress as a result of being part of the group who rolled off fixed rate shortly after the the trackers were withdrawn.

Same here.

 

[Brendan Burgess]

how much I should reasonably expect to be written down and in interest repayments on a mortgage in 2008 of EUR200k.

A) Calculating the overcharge

They will do two different calculations, and pay you the higher amount.

The FSPO calculation
The writedown will be €24k - 12% of €200k
Interest on this c. €12k ( Higher than usual as you broke out so early)
Total redress: €36k - or 18% of €200k

I see that this is close enough to Jomo's figure 18% of €178k = €32k and he got €31k.

The Central Bank calculation
They will look at what interest you actually paid.
Then what you would have paid on a tracker of about 1.5%
Then they work out the difference.

I don't think that there will be much in it.

B) Calculating the compensation

The Central Bank scheme was an automatic payment of 15% of the overcharge - so about €4,500

You get to keep this. But you can appeal to the Appeals Panel or the Ombudsman for more if you have been particularly inconvenienced.

C) You will be on a tracker of 1.5% from now until the end of your mortgage

 

[Jumping Jenson]

B) Calculating the compensation

The Central Bank scheme was an automatic payment of 15% of the overcharge - so about €4,500

You get to keep this. But you can appeal to the Appeals Panel or the Ombudsman for more if you have been particularly inconvenienced.

Many thanks Brendan for that explanation.

As I suffered with long periods of unemployment leading to me to ultimately Pieta House and back from the brink during these past 15 years as a result of the AIB/BOI/FF crash I also have significant arrears which may affect this calculation or not I am not sure.

But would I have a case for further compensation on this basis would you think Brendan?