Ulster Bank before the Oireachtas Finance Committee on Thursday

PadKiss said:
Hi all
"MANUFACTURING"
I believe this statement is of critical importance in the wider aspect of the CB Tracker Investigation. The rates being attempted by PTSB are "manufactured" as are the rates being attempted by AIB which started with ECB plus 4.97% on cases I was dealing with some years ago. I have always claimed these rates are "manufactured" and I find it refreshing (notwithstanding the wrong done by Ulster bank to their customers) that at least one bank has agreed to stop the wrongdoing and not to continue it in another guise as is being attempted by both PTSB and AIB. The deliberate nature of what has occurred will come out eventually across all lenders, that is my intention. Padraic
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The deliberate nature needs to be exposed, they all knew what they were doing. Their were no systems errors, it came straight from the board room table.
 
todo said:
Their were no systems errors, it came straight from the board room table.
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I'm not saying that's not the case but if you have any evidence to that effect I'm sure the Central Bank would be very interested to see it - I know I would!

Did Ulster have any fixed rate contracts that provided for a roll-off rate at a "prevailing" tracker rate? If they don't have to deal with this issue then I'm not sure I would be praising UB for criticising their competitors' decisions in this regard - it's a bit of a cheap shot.

That's not to suggest for a second that I don't agree that the methodology employed by AIB and PTSB to determine what would have been their "prevailing" tracker rate at a point in time when they no longer offered this product to new borrowers is entirely artificial and open to challenge.
 
My point related to the likely motive of the person making the comment - having a dig at his competitors - not his choice of words.

I agree that the post-2008 "prevailing" tracker rates have been manufactured.
 
I have to say that I'm interested as to how Ulster Bank managed to identify 2,000 (approx) customers all at once.

The Central Bank guidelines say:

The Examination framework provides that when impacted customers are identified; in the first instance, lenders must stop charging the incorrect rate of interest on the customer’s account to ensure that any further customer detriment is stopped as early as possible and communicate this to the customer.​

Full details can be found here: http://www.centralbank.ie/press-are...dateonExaminationofTrackerMortgageissues.aspx

How exactly can they say that they all of a sudden found in the region of 2,000 cases and they will contact them all within the next month or so. That simply couldn't have happened. There seems to have been a deliberate delay in informing customers and moving them onto the correct tracker rates, correct me if I'm wrong here?
 
The cynic in me says that the delay allows for any account adjustments to sit into the 2017 accounting year. The next mortgage repayment (after today) won't be due until 1st Jan 2017 for the majority of affected customers. Leaving any accounting issues to fall into 2017...
 
I doubt that's it - haven't UB already incorporated a faily substantial provision in their accounts to deal with their "legacy issues"?
 
The cynic in me says they are not giving anything away unless they absolutely have to.

But when they announce those being returned to tracker..... Is that it? Or do they have a round 2? And a round 3?
 
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Sarenco said:
I doubt that's it - haven't UB already incorporated a faily substantial provision in their accounts to deal with their "legacy issues"?
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Indeed they have, however Ulster Bank mortgages are issued with annual statements at the beginning of each financial year, for the previous year. That means the 2016 statement will be due in January 2017. The interest due, capital adjustments etc for each account is applied as part of this process. It's a printout from the system. For accounting purposes it would be easier to adjust mortgage accounts on an annual basis where possible, rather than sections of the year. It's less complicated and allows the system printout to go ahead, and gives them a further 12 months to make the new adjustments to the mortgage accounts.

Any credits/adjustments to the Ulster Bank mortgage accounts will then be visible in the 2017 printout, which will happen in January 2018.
 
Sarenco said:
Did Ulster have any fixed rate contracts that provided for a roll-off rate at a "prevailing" tracker rate? If they don't have to deal with this issue then I'm not sure I would be praising UB for criticising their competitors' decisions in this regard - it's a bit of a cheap shot.
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Agree fully.

Ulster Bank did not have "prevailing rate" contracts, so boasting about returning everyone to the rate in their contract cost them nothing.

If AIB put prevailing rate customers on ECB +1%, then they could have had a shot at ptsb.

Brendan
 
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