Ulster bank has miscalculated the repayments on trackers for years. Now it's AIB's problem

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So people know what Ulster/Natwest are like:

https://www.nasdaq.com/articles/natwests-ulster-bank-fined-record-38-mln-euros-for-mortgage-overcharging-2021-03-25
a deliberate strategy to seek to entice customers to convert their tracker rates to fixed rates during 2008.

The bank also failed to meet a statutory deadline to provide information to the central bank, forcing the regulator to take an "unprecedented step" of starting potential legal proceedings. Ultimately this was unnecessary as the information was provided.

"Our investigation identified the numerous opportunities that UBID (Ulster Bank Ireland DAC) had to do right by its customers and the efforts that UBID went to in order to evade its obligations," Irish Central Bank Director General, Financial Conduct, Derville Rowland, said in a statement.

"It is unacceptable for any regulated entity to treat its customers in this way."
 
misemoi said:
Without knowing the details of this particular issue, regardless of who is at fault, anyone borrowing sums of money in the hundreds of thousands should be able to calculate basics like interest rates, repayments etc and be able to keep track of these. People are well able to see how much their fuel costs for their car, how much on street parking is and yet most people are clueless of their mortgage, despite it being a huge chunk of household budget.
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I think most people start at the point at which they’re told that at X rate of interest, repayments will be Y amount. They understand that an increase of say 1% will result in a payment increase of Z amount. That’s good budgeting.

I don’t agree that consumers should know how the X amount is arrived at or be able to verify that they are being charged correctly.

If the lenders can’t get this right themselves, it’s unreasonable to expect borrowers to know any better.
 
Update from AIB on RTE.
www.rte.ie

AIB reassures tracker mortgage holders over repayments

AIB has moved to reassure a group of tracker mortgage customers, who received letters indicating their repayments were set to increase more than expected in October, that they will not face new repayments greater than they had anticipated.
www.rte.ie www.rte.ie

Snippet from article.
"This scenario we are investigating particularly relates to a group of customers who have a mortgage loan which is due to expire in the short term (over the next few months) or where customers have recently made an out of course repayment to their mortgage," the AIB statement said.
 
This really is a bizarre story.

Even by Irish banking standards.

I find it very, very hard to believe that AIB would have embarked on this course without the Central Bank’s tacit approval.
 
rameire said:
Update from AIB on RTE.
www.rte.ie

AIB reassures tracker mortgage holders over repayments

AIB has moved to reassure a group of tracker mortgage customers, who received letters indicating their repayments were set to increase more than expected in October, that they will not face new repayments greater than they had anticipated.
www.rte.ie www.rte.ie

Snippet from article.
"This scenario we are investigating particularly relates to a group of customers who have a mortgage loan which is due to expire in the short term (over the next few months) or where customers have recently made an out of course repayment to their mortgage," the AIB statement said.
Click to expand...
In my case, the loan isn’t due to expire for another 2.5 years so I don’t know how they can say it relates to the cohort they’ve suggested.
 
my belief is that AIB have either used an incorrect balance or an incorrect term when calculating their new repayments.
it could be a timing issue when they calculated the payments
 
No point them saying letters were wrong. Their customer agents were told to tell people their schedules were wrong when people rang up.......

Smacks of deliberate attempt to conceal at this stage.
 
rameire said:
my belief is that AIB have either used an incorrect balance or an incorrect term when calculating their new repayments.
Click to expand...

I can't understand what is happening, so there are a few possible explanations - none of which seems likely, but it must be one of them.

1) As reported, Ulster Bank got the repayments wrong.
2) AIB is calculating the repayments incorrectly
3) Ulster Bank sent the wrong balance to AIB
4) AIB used the wrong opening balance
5) In the handover some payments were missed.

But I would expect that before doing anything, AIB would double check everything.
 
I have clarified what has happened in this new thread

Clarification of the Ulster Bank to AIB repayment calculation issue

Here is the statement from AIB •AIB is working to resolve queries raised by some customers whose tracker mortgages moved to AIB as part of AIB’s recent purchase of Ulster Bank’s mortgage book. The queries arose following a letter issued after the July ECB rate increase, resulting in customers...
www.askaboutmoney.com
 
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