Ulster Ulster Bank Finds Mischarged Customers During Tracker Examination

[SaySomething]

As Ulster Bank checked their mortgage account books during the TME they checked all accounts (not just trackers).

They have issued a statement today saying that they have overcharged 9,800 customers, and undercharged 8,500 customers. These customers drew down on mortgages between 2001 and 2008. The refunds mentioned are relatively low compared to TME customers and so it appears it's a percentage margin issue which relates to fluctuation of interest rates around the time of signing contracts.

Ulster Bank say that they will NOT be pursuing the undercharged customers for the difference but WILL be refunding and compensating the overcharged customers.

90% of the affected customers were on fixed interest rates according to the press report in the Irish Times today.

I think this is quite a large proportion of their non-tracker loan book for those years, no? Also, it goes to show that the oversight of the Examination is having a positive knock on effect for all customers.

https://www.irishtimes.com/business...rtgage-holders-who-were-overcharged-1.3842240

 

[TrackerThieves]

Would be interesting to see what the average undercharge was compared to the average overcharge. €2,300 seems like a hefty amount if that's the average of nearly 10k customers. AIB admitted overcharging 85,000 customers who topped up personal loans last year. I was one of them and there was over €2,300 of an overcharge but the average across the 85k customers was only €25. I know its a different bank and a mortgage loan compared to a personal loan but some of them 9,800 must have been overcharged by huge amounts

 

[RedOnion]

Would be interesting to see what the average undercharge was compared to the average overcharge. €2,300 seems like a hefty amount if that's the average of nearly 10k customers. AIB admitted overcharging 85,000 customers who topped up personal loans last year. I was one of them and there was over €2,300 of an overcharge but the average across the 85k customers was only €25. I know its a different bank and a mortgage loan compared to a personal loan but some of them 9,800 must have been overcharged by huge amounts

Completely different scenarios.

The AIB top-up issue was in simple terms they increased the top-up by the amount of interest that was outstanding at the time, even though the interest wasn't due to be paid, so they lent more than the borrower had asked for. I'm assuming your 2,300 included compensation, but even then you would have been in the upper amounts involved. Most personal loan top-ups are for small amounts.

The mortgage issue discovered by UB was where the interest rate changed between offer date and drawdown. They were contractually entitled to apply the new rate, but didn't adequately inform the borrower.
The overcharge would be a factor of the balance and the amount rate had changed, so there won't be any small amounts involved. It was primarily fixed rates, so an average 2 year term that the customer was overcharged.

 

[TrackerThieves]

Completely different scenarios.

The AIB top-up issue was in simple terms they increased the top-up by the amount of interest that was outstanding at the time, even though the interest wasn't due to be paid, so they lent more than the borrower had asked for. I'm assuming your 2,300 included compensation, but even then you would have been in the upper amounts involved. Most personal loan top-ups are for small amounts.

The mortgage issue discovered by UB was where the interest rate changed between offer date and drawdown. They were contractually entitled to apply the new rate, but didn't adequately inform the borrower.
The overcharge would be a factor of the balance and the amount rate had changed, so there won't be any small amounts involved. It was primarily fixed rates, so an average 2 year term that the customer was overcharged.

Thanks for the explanation.
There was no compensation from AIB the €2300 was a combination of interest amounts owed from previous top-ups and refund of interest charged as a result of a higher balance