Trackers on Prime Time tonight

Brendan Burgess

Founder
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37,853
The MFA I saw said something along the lines of " you will move to the variable rate. Other than this, the terms of the original loan offer remain unchanged" which is very different.

Brendan
 

Sarenco

Frequent Poster
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5,499
Thanks Onceagain.

To be clear, I'm not trying to run down anybody's argument - I'm just trying to understand why somebody as experienced as Pádraig Kssane is so emphatic on this issue.

If the argument is based on conflicting wording between different documents, well that's obviously fair enough - but that argument was not advanced or explained on the programme.

I wish you well with your complaint.
 
R

rodger

Guest
Hi Sarenco

Let's take the ptsb issue.

The Central Bank is all over them. If a contract says something clearly, then ptsb will not be able to just change it as the report suggested. Borrowers can appeal to the internal Customer Appeals Panel, the Ombudsman and the High Court. So rest assured that where a contract is clear, ptsb is honouring it.

The argument is what does a contract mean when it says "You will be put onto the prevailing tracker rate when the fixed period expires". The Ombudsman has ruled on this. This was not a margin guarantee. The High Court has ruled that the ESIS has no legal standing. If a contract naturally expired in June 2010, the borrower was put on a tracker of 3.3%.

In my view the best chance for Thomas and others is that they should get the prevailing rate when they terminated the fixed rate early as that rate was much lower than when the contract was due to expire.

As I had planned to say on the programme, and I hope I said it, if it is found that ptsb engaged in underhand behaviour, e.g. if they encouraged people to fix or to break a fixed rate to get them off their trackers, then those customers should be given a tracker of no more than 1% margin.
A tracker tracks ecb. There is no reason for the margin to change.
If the margin changes then what's it called? an index linked tracker? Why not arbitrarily adjust other tracker holders???

I find it disturbing this argument by ptsb and their hiking of the margin. The margin was set day one. It was around 1.1%.

The prevailing tracker rate is ecb + original margin. The variable is ecb rate. When they talk about prevailing it's because they can't know in advance the ecb rate.
 

Brendan Burgess

Founder
Messages
37,853
Hi rodger

Unfortunately, for some of these borrowers, there was no rate specified in the mortgage contract. So it didn't change.

They started on a fixed rate and were told at the time, that on expiry of their fixed rate, they would be put on the "tracker rate then prevailing".

Where the contract specified a rate and where the contract was not superseded by a change of contract, they got the rate specified in the contract.

Brendan
 

MrEarl

Frequent Poster
Messages
1,725
...Unfortunately, I had to spend most of my limited time correcting the report. I am very happy to criticise the lenders but I am only going to do it based on facts. Not on error. It was a difficult position to be in.
Well done Mr. Burgess.

I thought you did well given the difficult position you found yourself in.

I am truely frustrated with the way Prime Time has gone, it seems to be more and more a show about what Miriam feels like saying or how she feels like behaving, rather than getting the facts correct, ensuring that people are not interrupted when making important points and in particular, when they are trying to respond to someting Miriam has said to them etc.
 
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