Brendan Burgess
Founder
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The Ombudsman issued his Annual Report for 2023 this morning and I have extracted and attached the section on Tracker Mortgage complaints.
Ombudsman's Annual Report comments on Tracker Cases
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Brendan Burgess
Founder
- Messages
- 58,541
Summary of cases in Annual Report
Click on the number for the full decision
2023 -0236
Took out a variable rate mortgage and a top-up also at a variable rate when trackers were available. Had never been informed by the bank that trackers were available.
Rejected
2023 -0135
Took out a tracker.
Traded up
New mortgage was a "one year discount LTV rate"
At the end they would be offered rates, and if they did not choose, would default to a variable interest rate which may be a tracker variable rate.
At the end of the one year, offered only variable and fixed rates
Felt they should have been offered a tracker.
Rejected
2023 -0188
Had a tracker.
Traded up but took out an entirely new non-tracker mortgage.
The following month, the bank launched a tracker mover project.
Felt that they should have been told about it.
Rejected.
2023-0268 AIB Simple vs. Compound interest
Accepted the 12% right down but complained that the refund of interest was on a simple basis.
Rejected.
Discussed here:
2023 - 0111 AIB staff preferential rate
Borrower was on a staff preferential rate which he claimed was a fixed rate and so was entitled to be offered the Prevailing Tracker rate when it ended.
AIB claimed that the staff preferential rate was a variable rate and so he was not entitled to the Prevailing Tracker rate.
Rejected.
2023 - 0070
Couple had a tracker.
Split up.
She "took over" the mortgage.
No additional borrowing - just removing his name from the mortgage.
Bank argued it was a totally new mortgage.
Rejected.
Click on the number for the full decision
2023 -0236
Took out a variable rate mortgage and a top-up also at a variable rate when trackers were available. Had never been informed by the bank that trackers were available.
Rejected
2023 -0135
Took out a tracker.
Traded up
New mortgage was a "one year discount LTV rate"
At the end they would be offered rates, and if they did not choose, would default to a variable interest rate which may be a tracker variable rate.
At the end of the one year, offered only variable and fixed rates
Felt they should have been offered a tracker.
Rejected
2023 -0188
Had a tracker.
Traded up but took out an entirely new non-tracker mortgage.
The following month, the bank launched a tracker mover project.
Felt that they should have been told about it.
Rejected.
2023-0268 AIB Simple vs. Compound interest
Accepted the 12% right down but complained that the refund of interest was on a simple basis.
Rejected.
Discussed here:
Ombudsman rejects complaint on AIB simple interest issue
The Ombudsman has published a decision on this issue and has upheld AIB's decision to pay simple interest. I have no idea how well the complainant argued the case. I attach the decision and will study it in detail later. Brendan
www.askaboutmoney.com
2023 - 0111 AIB staff preferential rate
Borrower was on a staff preferential rate which he claimed was a fixed rate and so was entitled to be offered the Prevailing Tracker rate when it ended.
AIB claimed that the staff preferential rate was a variable rate and so he was not entitled to the Prevailing Tracker rate.
Rejected.
2023 - 0070
Couple had a tracker.
Split up.
She "took over" the mortgage.
No additional borrowing - just removing his name from the mortgage.
Bank argued it was a totally new mortgage.
Rejected.
Last edited:
SaySomething
Registered User
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- 667
Interesting comment in the introduction (not included in the section pasted above).
To say this is a misrepresentation doesn't quite cover it...
To say this is a misrepresentation doesn't quite cover it...
Brendan Burgess
Founder
- Messages
- 58,541
It's definitely misleading not to give the time for complaints which go to adjudication as some people are waiting years.
Timelines
Although the number of complaints received increased considerably in 2023, many of these complaints were resolved early on in our processes. I would encourage both consumers and providers to take advantage of the swift resolutions that can be achieved through our informal dispute resolution process. Mediation has proven to be an effective and timely method of resolving complaints to the satisfaction of all involved.
In 2023:
85% of complaints that closed in 2023, were closed within 12 months of the complaint being made. This was mainly through resolution in our Dispute Resolution Services (mediation) and early-stage assessments and interventions in our Customer Operations and Information Management department. This includes when a complaint was resolved directly between the parties, or if a complaint fell outside the jurisdiction of the FSPO.
For all complaints that closed in 2023, including tracker mortgage complaints, the average time from receipt of complaint to closure, was 8.6 months.
For non-tracker mortgage complaints that closed in 2023, the average time from receipt to closure, was 7 months.
Certain more complex complaints, including those requiring a formal adjudication process or formal jurisdictional assessment, or both, take longer to resolve.
This reflects the fact that adjudications by the Ombudsman are legally binding and accordingly, it is important that every decision arrived at, has followed due process and allowed both parties to make submissions and offer observations on the evidence and on the other party’s submissions, as appropriate.
Timelines
Although the number of complaints received increased considerably in 2023, many of these complaints were resolved early on in our processes. I would encourage both consumers and providers to take advantage of the swift resolutions that can be achieved through our informal dispute resolution process. Mediation has proven to be an effective and timely method of resolving complaints to the satisfaction of all involved.
In 2023:
85% of complaints that closed in 2023, were closed within 12 months of the complaint being made. This was mainly through resolution in our Dispute Resolution Services (mediation) and early-stage assessments and interventions in our Customer Operations and Information Management department. This includes when a complaint was resolved directly between the parties, or if a complaint fell outside the jurisdiction of the FSPO.
For all complaints that closed in 2023, including tracker mortgage complaints, the average time from receipt of complaint to closure, was 8.6 months.
For non-tracker mortgage complaints that closed in 2023, the average time from receipt to closure, was 7 months.
Certain more complex complaints, including those requiring a formal adjudication process or formal jurisdictional assessment, or both, take longer to resolve.
This reflects the fact that adjudications by the Ombudsman are legally binding and accordingly, it is important that every decision arrived at, has followed due process and allowed both parties to make submissions and offer observations on the evidence and on the other party’s submissions, as appropriate.
SaySomething
Registered User
- Messages
- 667
I agree it's very misleading.
It's unfortunate for consumers that they do not define this 'longer to resolve' time frame. This leads to unrealistic expectations. Many of us are aware this process is taking several years, with timeframes being altered mid-process.
I can't see when the FSPO is before the Finance Committee again but would feel it's an important point to be raised.
It's unfortunate for consumers that they do not define this 'longer to resolve' time frame. This leads to unrealistic expectations. Many of us are aware this process is taking several years, with timeframes being altered mid-process.
I can't see when the FSPO is before the Finance Committee again but would feel it's an important point to be raised.