How will arrears be handled?

[Brendan Burgess]

From ptsb's FAQ:


If a customer’s loan account has arrears on it, will that impact on the amount of money they receive?

Whether or not a customer has arrears on their mortgage account will not make any difference to the compensation payment we are offering to make to them.

However in terms of the redress element of permanent tsb’s offer, the amount of any overpayments made following the adjustment of the loan balance will be used to reduce the customer’s arrears balance, before any remaining refund amount is paid to them. Whether they will receive any net refund payment will depend on the amount of the overpayments and the amount of their arrears balance.

 

[Brendan Burgess]

When John came out of the fixed rate 5 years ago, he had a balance of €300k. He was put on a rate of 4%. He should have been put on a rate of 1%

So he has been overcharged around €45k.

This would be the balance today, had he been charged the correct amount and made the appropriate repayments:

Situation 1 - Actual balance before correction: € 310k

As the adjusted balance exceeds what the balance would be had he been charged the correct interest and had he made the full repayments, the balance will be reduced to €265k and no refund is due.

Situation 2 - Balance today before correction: €270k