Ulster Bank Refund for Interest Overcharge on commercial mortgages May 2019

Bronte

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13,640
AIB

They said their trackers would have cost around 7 %. How is that if it cost Ulster around 1%. And I see it’s costing Ulster .23% this month. ( I probably should not have fixed! )
 
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RedOnion

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I’m a bit confused though. Me and my husband are not an enterprise or entity
You don't have to be an entity.

Take a farmer for example. He's a person. If he borrows to buy farmland, the loan is for a business purpose. Therefore SME code applies. But if he borrows for home improvements then CPC applies.

The loan you've described is a classic business loan, so UB have obviously classed you as a business customer, for that loan.
 

Bronte

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Prarse Doherty

He’s really super. Note to Pearse, ask the bank if any customers of the 18,000 the following:

- how many got letters in 2012
- would customers have realised the ads applied to them
- how many complained about the rate going up
- ask fir the ads, were they clear rates were going up
- how many complaints got a final response letter
- how many took a case to the ombudsman
 

Bronte

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You don't have to be an entity.

Take a farmer for example. He's a person. If he borrows to buy farmland, the loan is for a business purpose. Therefore SME code applies. But if he borrows for home improvements then CPC applies.

The loan you've described is a classic business loan, so UB have obviously classed you as a business customer, for that loan.
Ok, got it.

As I said it was a ‘new’ method to shovel the money out to customers. That’s how the banker was describing it to me when I met him, he was in high glee, explaining it was a way to avoid doing a proper mortgage. I was amazed, he also wanted to give me 100%. Never borrowed money so easily. Down the years on here I mention my amazement at the carry on.
 

Bronte

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I've requested

- how the bank made the calculation of the refund
- costs for an independent consultant to calculate if the bank has charged me the correct rate of interest from day one

Questions

1. If it turns out that I overclaimed interest is say 2013 on my tax return, does that mean I'm liable for penalties and interest to revenue? And if yes, is it not the bank that should have to pay this.
2. Who should I get to calculate my mortgage interest from day one, any idea as to costs?
3. Who or what is a company called First Source
4. Anyone ever hear of a SARS request, apparently it's Subject Access Request

Note
I found out that although the bank is giving me 3% interest on my refund, other people, in business, who had overdrafts, that it's more complicated for them. Because they would have drawn down more overdraft than was needed if the calculation on the loans had been correct. I'm assuming then the bank has to make a separate calculation for those customers, and then they'd be due the over draft interest back, plus interest on that.

AAM

Is there anybody on AAM who is going through this process and would be prepared to let me know by PM what they have done as regards this.
 

elcato

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If it turns out that I overclaimed interest is say 2013 on my tax return, does that mean I'm liable for penalties and interest to revenue? And if yes, is it not the bank that should have to pay this.
What are the chances of the taxman ever knowing about this ? Even if they did it they would have to accept that it was something you didn't know about and would be very harsh to seek penalties and interest. I'm sure the pedants here will have a different view though.
 

RedOnion

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@Bronte
There are only a few companies that I've ever seen write decent reports (I work on the bank side in redress cases).
The going rate is about 1270 per account, but it varies with complexity. In your case, the complexity is checking how they've calculated the new rate. The refund bit is straight forward once you accept that as being right. Unfortunately I'm a bit tied up at the moment, or I'd have a look at it for you.
3% is probably fair. If I understand correctly, this is on top of providing you 'time value of money' at the rate applicable to the account?
You could claim for more if you borrowed at more expensive rates elsewhere.

Re tax, there are no penalties. I understand you put through the refund as a reduction in your interest expense this year.

You're talking about a DSAR - data subject a cess request. Under GDPR you've a right to access your data.

First Source is a fairly large global outsourcing company.
 
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