Write off No but any affected persons should take complaints to FPSO seeking significant compensation. Unbelievably lucky for some but it can be a double edged sword given some people could be close to retirement and have little means to pay off before expiry.Most of these people have very cheap trackers.
By paying less than was due they were getting a great deal. Effectively a loan at about 1%
It's not so good now as ECB rates have risen.
There is no justification for a write off.
But they should be offered a choice of extending the term or increasing their repayments.
Brendan
How do you know this?But they have not calculated the interest incorrectly.
Can we get a bit of perspective here.
If Ulster Bank had charged the wrong interest rate for 10 years, then they should be allowed to charge the correct interest rate from now on. But they should not be allowed to recover the undercharged interest backdated 10 years.
But this was only a miscalculation of the repayment.
So people had a 20 year mortgage instead of the 18 year mortgage they thought they had. They have not lost out. They have not been overcharged or undercharged.
The correct interest has been charged.
These mistakes do happen. But as the customer has not lost out, they should not be getting compensation.
However, the customer should have a choice of keeping the current repayment and extending the term or increasing the repayment and keeping the term.
This happens all the time at the instigation of the borrower.
They overpay their mortgage because they can afford to.
Or they extend the term because they are finding the level of repayments difficult.
Brendan
- Who spotted this nowWow. That is very interesting.
It will be a big headache for AIB. And it's good that they spotted it now.
Are you sure of your calculations?
Brendan
Well I recently received an annual mortgage statement from Ulster. It covers a 10 month period up to 21 July so I guess it doubles as their closing statement.Are you sure of your calculations?
How do you know this?
Simply changing peoples repayments without any correspondence or public admission of the issue from either AIB or Ulster Bank is scandalous
And by the way, the correspondence I received from AIB that informed me of the increase was dated 28 July. The revised rate to take account of the “error” had already been calculated and stitched in.
How do I know that the interest on my AIB mortgage is calculated correctly? Or on my current account overdraft?
There is no reason to believe that it is incorrect.
Brendan
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