KBC KBC statement on tracker redress

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Cheers rakitom. Trying to get explanation is ropey alright. Just looking forward to reply to my questions to KBC about contracts, terms, glossary, flyer difference between prevailing lenders rate and SVR and where it is etc. That should be an interesting read when it comes........if ever!
 
To Qwerty123
You wouldn’t be talking about KBC. Got my letter last week as well. Phoned the help line but it’s manned by KBC staff who just do not know the answers to the questions posed. I too asked same question re rates but got no where fast.
 
Hi, Im new to this and Im a bit confused. So we took a mortgage with KBC back in 2008 on a a fixed rate. Like a lot of people we had a tough time during the recession but we always paid the mortgage and never really took notice. I was away with work for the last few days and got home today to find a letter from KBC basically saying our account is "both within the scope of the review and included within a group of accounts considered as being impacted as part of the tracker examination. We were never offered or on a tracker rate, i understood this review was for people who were on a tracker rate. can someone advise me what it means to receive this letter and what i should be doing now I have it. Thanks in advance.
 
Hi, Im new to this and Im a bit confused. So we took a mortgage with KBC back in 2008 on a a fixed rate. Like a lot of people we had a tough time during the recession but we always paid the mortgage and never really took notice. I was away with work for the last few days and got home today to find a letter from KBC basically saying our account is "both within the scope of the review and included within a group of accounts considered as being impacted as part of the tracker examination. We were never offered or on a tracker rate, i understood this review was for people who were on a tracker rate. can someone advise me what it means to receive this letter and what i should be doing now I have it. Thanks in advance.
Congrats!

From November 2006 to Feb 2008 there was an implied understanding by brokers that any fixed rate agreement they placed with kbc would roll over to a tracker rate at the end of the fixed rate period.

That tracker rate was between 0.95% and 1.25% depending on the loan size and loan to value percentage.

The central bank have seemingly insisted that all those who took a fixed rate in that timeframe should be restored to a tracker rate from the end of the fixed rate period.

What it probably means for you is a refund of overpayment since the end of your fixed rate and a tracker rate of 1.25% above ecb being applied to your mortgage.

As you have the letter, there is nothing you need to do except maybe plan for a nice holiday :)
 
Hi, Im new to this and Im a bit confused. So we took a mortgage with KBC back in 2008 on a a fixed rate. Like a lot of people we had a tough time during the recession but we always paid the mortgage and never really took notice. I was away with work for the last few days and got home today to find a letter from KBC basically saying our account is "both within the scope of the review and included within a group of accounts considered as being impacted as part of the tracker examination. We were never offered or on a tracker rate, i understood this review was for people who were on a tracker rate. can someone advise me what it means to receive this letter and what i should be doing now I have it. Thanks in advance.

What date in 2008 did you draw down ?
 
Hi Unfortunate

I see you have got no reply from the forum.

Perhaps that’s your answer.

I think the term must be explained differently by each bank.

AIB’s understand is the prevailing rate was the rate offered when the mortgage was drawn down,

KBCs understanding of the prevailing rate was that it revered to the rate available on expiry of the fixed term, the CB obviously won this arguement in KBCs case.

But KBCs was tied to the informous flyer.

The problem the banks have is, no matter what’s dictionary you look at the wort prevailing means, before the current time. Or some point in history. Not the future.

The disclaimer by most instructions that covers most eventualities is, previous performance does not guarentee future performance.

In the case of Mortgage contracts, and fixed rates in particular, the banks inverted this caviat because a fixed rate is normally a discounted rate. So the banks wish to revert you to a higher rate on expiration of the fixed term. (There Bad)

In my case my fixed term was 4.99% for 3 years fixed but the prevailing rate was 5.99% Tracker Variable in 2008.

It’s a bit like the crash, the banks did not see a situation of zero interest rate, they did not see there cost of borrowing higher than that of what they had set in tracker contracts.

So they decided to work on what was best for them at the time. However if the ECB rate had of moved to 7.5% the bank would have stuck every fixed rate on expiration to a tracker of 8.5% approx and higher in some cases.

So again it’s all contract interpretation, and the banks decided to view all contracts in there favour. This will be there undoing.

As stated before, when the tracker scam is finished it will be the Variable rate scam next. And I can tell you the banks are nervous about the current situation.

The only challenge to this thus far was the Millers v Danske Bank. Ombudsman rules in favour of bank, Miller’s appealed high court said ombudsman remit was not to interpret contract law, and both Danske and Ombudsman appealed.

This was never brought to the ECJ, but I’m sure it will be in the future. I was willing to start a fund me campaign for the millers at the time. I contacted there solicitor at the time but got no response.

And the term challenge then was current market conditions this was interpreted very narrowly in the Irish context not a European context.

So in my opinion lost more to see here. And when interest rates rise the banks will be watched very closely, if they raise SVR, this will go to the ECJ I have no doubt.

The banks can’t only operate in one direction.

That’s my penny’s worth as long winded as it is.

I’m still on for the go fund me campaign, if every person who gets redress puts in for the SVR Scam the banks will have a dump on themselves.

We all know what it’s like to be screwed so those left behind deserve some support from the Tracker winners.

Let’s see if there is a mood for this type of action on this forum.

@Rakitom

I would be in favour of "crowd finding" should KBC try to pull a fast one on the prevailing rate

@ "unfortunate"

Here also is Bernard Byrnes quote when he appeared st the Oireachtas;
IMG_8933.PNG
 
Re my post above re Bernard Byrne AIB. Aib customers are now being offered 3.67 percent margin however they never had a communication from their broker i.e. No margin was set at the time of drawdown. (There is a thread on AAM re campaign on another thread regarding AIB prevailing rate.)
As PEEMAC stated above, the margin to be offered must be 0.95 - 1.25% and must be applied to KBC impacted customers (those that fixed from the start accounts) in this instance
 
Took out mortgage in 2007 through a broker with IIB Homeloans .... Fixed Rate.

Received the “impacted letter” last week. Phoned KBC for further info to no avail, just was told that they would contact me by March or June...

Presuming I’m in the 650 Nov 06-Feb 08 cohort.

I noticed a few here asking about 2008 dates, Feb 2008 on the KBC website. Again, presuming wording in original contract must be the same for this group.
 
Took out mortgage in 2007 through a broker with IIB Homeloans .... Fixed Rate.

Received the “impacted letter” last week. Phoned KBC for further info to no avail, just was told that they would contact me by March or June...

Presuming I’m in the 650 Nov 06-Feb 08 cohort.

I noticed a few here asking about 2008 dates, Feb 2008 on the KBC website. Again, presuming wording in original contract must be the same for this group.

Hi MC, what date in 2007 did you take out mortgage? What a joke.. March or June!
 
Hi DamC82,
It was March 2007.

Yes the person on phone was just reading me the dates that were already on the letter I received and added the “if” I was due anything also.
What date did you get your mortgage ?
 
Congrats!

From November 2006 to Feb 2008 there was an implied understanding by brokers that any fixed rate agreement they placed with kbc would roll over to a tracker rate at the end of the fixed rate period.

That tracker rate was between 0.95% and 1.25% depending on the loan size and loan to value percentage.

The central bank have seemingly insisted that all those who took a fixed rate in that timeframe should be restored to a tracker rate from the end of the fixed rate period.

What it probably means for you is a refund of overpayment since the end of your fixed rate and a tracker rate of 1.25% above ecb being applied to your mortgage.

As you have the letter, there is nothing you need to do except maybe plan for a nice holiday :)

Thanks for this Peemac. Dont want to start counting my chickens......
 
January 2007, so I have to be in the same cohort.

Its bemusing to see the 'if', the December statement categorically states definatively.

@Lightening , I have indeed, several times, however its very difficult to converse with employees on the ' helpline'.. I get frustated and its not the their fault
 
January 2007, so I have to be in the same cohort.

Its bemusing to see the 'if', the December statement categorically states definatively.

@Lightening , I have indeed, several times, however its very difficult to converse with employees on the ' helpline'.. I get frustated and its not the their fault


I am sure you will get the letter. Write a letter to tracker team
 
I am in the same boat, drew down end of February 2008 and still haven't received a letter, was told on the phone two weeks ago I was impacted and would receive a letter by in the coming weeks still no sign, rang again this week and was told still reviewing my account its disgraceful you cant get e straight answer from them.
 
DAMC82- Have you anything regarding the “prevailing rate” in your contract?

Also , I’ve been reading posts from people dealing with different banks and generally people are receiving post/info at different times. Looks like they are dealing with batches of accounts at a time. Just shows the scale of the issue.
 
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