KBC KBC update December

DamC82

Frequent Poster
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155
Example 3
-
Other Communications Customers may have Considered Resulting in an Expectation of a Right to, or Option of, a Tracker Product

Ann drew down a mortgage on a tracker interest rate in 2003. The lender’s marketing and/or sales material
conveyed the right to, or the option of , a tracker rate of interest on expiry of a fixed interest rate period.
Ann decided to move to a fixed rate for a period of two years. The information contained in the documentation signed by Ann when moving to the fixed rate did not provide for the right or option of a tracker rate of interest on expiry of the fixed interest rate period
.
As a result,a tracker interest rate was not provided to Ann at the end of the two-year period
.
Ann has now been put on the correct tracker rate of interest and has received appropriate redress and compensation.



Above from todays update from the CB, Is this revelant to the theme of this thread of am I being overly optimistic?
 

TMH2017

Frequent Poster
Messages
57
BOI press release states 100% of impacted customers have been returned to the tracker rate and that 8 of 10 have been offered compensation so looks like they believe they have identified all customers with CB stating that known issues around disputed groups have been resolved to their satisfaction so doesn't look good for those of us deemed not impacted at this stage
 

peemac

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Messages
639
20th December 2017, 2.30pm


UPDATE FROM KBC BANK IRELAND REGARDING THE TRACKER MORTGAGE EXAMINATION


KBC reiterates its full acknowledgement of the errors that occurred in relation to the rate administration of the Bank’s tracker mortgages in the past. These mistakes should not have happened, and we acknowledge that they have caused significant detriment to some of the Bank’s customers. We sincerely apologise for this once again.

We cannot undo the past, but we can provide remediation and learn from mistakes. The tracker mortgage examination has been the top priority for the Bank and KBC has taken this matter very seriously. The review of the historical documentation and account information, individual customer circumstances and influencing factors at the time is a comprehensive process. KBC has conducted this review under the examination framework in the interest of achieving a fair outcome for customers, identifying circumstances where the interaction between the Bank and certain customers has been seriously deficient or not of a standard that would be required under the framework. While taking into account its legal and contractual commitments, in making its determination the Bank’s approach has been to ensure that the balance of consideration is in favour of the customer.

Following its statement of 25th October 2017, KBC continued its engagement with the Central Bank and is now in a position to comment on the agreed customer cohorts that are impacted.


Update on Customer Accounts Previously Identified as Impacted

KBC had previously identified as impacted 417 mortgage accounts (note 1), that either did not roll to a tracker rate after a fixed rate period, were moved off their tracker rate following a change to the terms of their loan (such as an interest only period), or were on the incorrect tracker margin.

Redress and compensation payments to those customers commenced in November 2017. In a majority of cases, full payment of redress and compensation will be made before the end of December 2017. For the remaining cases a partial payment will be made before year end with a final payment expected before the end of January 2018.

In a review concluded in 2010, prior to the current examination, the Bank rectified 571 customer accounts.

Update on Additional Customers Accounts Identified as Impacted

In our October statement KBC had anticipated that an additional 200-600 accounts would be identified as impacted.

The Bank is now confirming that this number has increased and as a result of further review, a group of c. 2,557 mortgage accounts are now identified as impacted for a variety of reasons. These accounts will be moved back to a tracker rate, if the account is still open, and they will receive redress and compensation:

· c. 1,907 mortgage accounts that converted from a tracker rate to another rate product post drawdown up to the period July 2008 are now identified as impacted.

· c. 650 PDH (Private Dwelling Home) mortgage accounts are now also identified as impacted. These related to new mortgage applications in the period November 2006 to February 2008 that drew down their mortgage on a fixed rate with a roll off to a standard variable rate. While these customers were never on a tracker rate, KBC has decided to offer these PDH customers a tracker rate product if the account is still open.


Payment of redress and compensation for the customers identified more recently as impacted will commence in January 2018 and complete by the end of June 2018.


Total Number of Customer Accounts Impacted

Overall, KBC has to date identified c. 2,974 mortgage accounts as impacted as part of this tracker mortgage examination.


Customer Queries

Customers that have queries on this issue can contact KBC at TrackerMortgageExamination@kbc.ie or by calling on 01-6646983.
 
Last edited by a moderator:

todo

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Messages
264
BOI press release states 100% of impacted customers have been returned to the tracker rate and that 8 of 10 have been offered compensation so looks like they believe they have identified all customers with CB stating that known issues around disputed groups have been resolved to their satisfaction so doesn't look good for those of us deemed not impacted at this stage
I assume if we call the help line they'll tell us the review won't finish until next year?
 

Tracks123

Registered User
Messages
18
Correct Todo.
I just called and was told the review is on-going and my account has not been deemed impacted or not impacted.
Anyone else still waiting to see if they are impacted or not.
Staff have been told to work 3 days next week....
 

PJDCol

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Messages
134
"1,907 mortgage accounts that converted from a tracker rate to another rate product post drawdown up to the period July 2008 are now identified as impacted"

I think this statement is exactly what some of us wanted to hear for a long time who were on tracker, fixed, and were not returned - I hope :cool:
 

todo

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264
Looks like we'll just have to get into the next process of appealing the decision with the FSO. I suppose that will be another 2 year ordeal.
 

Leighlinboy

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Messages
115
Please god PJDCol

Also Those of us that drewdown on variable moved to tracker .... then fixed for 5 years and
Were not put back on :)

Ive read it a few times ... seems to cover a couple of scenarios prior to july 2008

Please let this be the one !
 

PJDCol

Frequent Poster
Messages
134
I know but unfortunately more of a waiting game - will properly drag out till June :(

"Payment of redress and compensation for the customers identified more recently as impacted will commence in January 2018 and complete by the end of June 2018"
 

Lightening

Frequent Poster
Messages
319
Example 3
-
Other Communications Customers may have Considered Resulting in an Expectation of a Right to, or Option of, a Tracker Product

Ann drew down a mortgage on a tracker interest rate in 2003. The lender’s marketing and/or sales material
conveyed the right to, or the option of , a tracker rate of interest on expiry of a fixed interest rate period.
Ann decided to move to a fixed rate for a period of two years. The information contained in the documentation signed by Ann when moving to the fixed rate did not provide for the right or option of a tracker rate of interest on expiry of the fixed interest rate period
.
As a result,a tracker interest rate was not provided to Ann at the end of the two-year period
.
Ann has now been put on the correct tracker rate of interest and has received appropriate redress and compensation.



Above from todays update from the CB, Is this revelant to the theme of this thread of am I being overly optimistic?
---
I think you fall into this cohort!

c. 650 PDH (Private Dwelling Home) mortgage accounts are now also identified as impacted. These related to new mortgage applications in the period November 2006 to February 2008 that drew down their mortgage on a fixed rate with a roll off to a standard variable rate. While these customers were never on a tracker rate, KBC has decided to offer these PDH customers a tracker rate product if the account is still open
 

TMH2017

Frequent Poster
Messages
57
unfortunately yes ,imagine staff are working on getting refunds or letters saying u are not impacted out rather than identifying new cases though,
looking at example 3 in central bank (pg. 10 of their report) and decision by KBC in terms of 650 PDH's very little difference vs. mine and others BOI situations which are deemed not impacted other than what rate you started out on day 1.
 

Leighlinboy

Frequent Poster
Messages
115
Id snap your hand off now to
Get my mortgage repayment down for December and a cheque in the lamh in time for the summer

Please god we are coming to the end .
 

DamC82

Frequent Poster
Messages
155
The reference November 2006 to early November 2008 refers to the broker communication. I recall the rate was 1.25
So you believe thats the rate that will be offered? Unbelievable if it turns into reality.. where did you get that info about the PDH'S?
 

PJDCol

Frequent Poster
Messages
134
Bit concerned about the reference date of November 06 - my friends I have looked at drew down in June 06 but their broker was certainly offering them a fixed that roles to tracker if they wish. We have that in writing. It might been an appeal for them.
 

grock1982

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Messages
63
We took out our mortgage from iib in June 08. Fixed for 5 years with roll on to prevailing variable rate. As it was early June 08, are we not included in therr 650 number outlined today?
 
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