AIB We have won the Prevailing Rate issue

Brendan Burgess

Founder
Messages
39,145
Statement released by AIB this morning.

AIB GROUP PLC – TRACKER MORTGAGE PROVISION UPDATE

AIB Group plc (“AIB”)advises that following a preliminary decision issued by the Financial Services and
Pensions Ombudsman, the Board understands that redress may be due to a previously identified group of
customers who had an option of a prevailing tracker rate.

The Board recognises that there is a range of possible outcomes and has created a provision of €300 million
which will be taken in full year 2019 financial results.

The Board also recognises it is in the interests of the
Group, our customers and our other stakeholders to bring this matter to a resolution and discussions are
ongoing with the Central Bank of Ireland with regard to potential appropriate treatment of this group of
customers.


-ENDS-
4 FEBRUARY 2020
 

AnitaF

Registered User
Messages
30
Oh my god, to wake up to this is incredible news!

We cannot thank you enough for your hard work and dedication to our issue Brendan.

And to everyone else also who spearhead this campaign, a huge thank you from me as without this combined group effort I would be nowhere.
 

verywhys

Frequent Poster
Messages
118
That’s is such amazing news, such a relief....thank you Brendan.....thanks to the ombudsman for being independent and for ensuring consumer protection is real and available.....and for showing that the tracker appeals panel are a joke
 

misstealeaf

Frequent Poster
Messages
48
Can I ask if this is related to the group who were on a fixed rate with option to move to a tracker at the expiry of that date but tracker withdrawn at that date. I received ‘compensation’ of 1600 a couple years ago and appealed but with no joy. Would this relate to me?
 

coolaboola12

Frequent Poster
Messages
77
Can I ask if this is related to the group who were on a fixed rate with option to move to a tracker at the expiry of that date but tracker withdrawn at that date. I received ‘compensation’ of 1600 a couple years ago and appealed but with no joy. Would this relate to me?
yes
 

Dpdp01050842

Frequent Poster
Messages
74
Congratulations all and well done Brendan for the logical argument you put forward.

Interestingly AIB still can’t bring themselves to admit it with the use of “may”

“the Board understands that redress may be due to a previously identified group”

The argument for this was so logical it’s a disgrace AIB pushed the issue this far (with the assistance of the Appeals Panel). I hope the compensation reflects the fact AIB were dragged kicking and screaming. They should have to pay significantly more than if they had just entered meaningful dialogue earlier on.

Also, I hope the disgraced appeals panel take some flack for this. Looking at some of their responses they didn’t even read people’s cases. I hope they are held accountable.
 

Brendan Burgess

Founder
Messages
39,145
on a completely selfish note, does anyone know how we could calculate what we would expect in redress ??
Hi coolaboola

As the Ombudsman's decision is still a preliminary decision and has not been finalised or published, I cannot discuss this.

As a very rough guide and it's very rough - it's costing €300m for 6,000 customers. That would work out at around €40k per average customer who probably had an average mortgage of €300k. (It's €50k but it will cost AIB a lot in administration and they have probably overprovided as well..)

Brendan
 

coolaboola12

Frequent Poster
Messages
77
Hi coolaboola

As the Ombudsman's decision is still a preliminary decision and has not been finalised or published, I cannot discuss this.

As a very rough guide and it's very rough - it's costing €300m for 6,000 customers. That would work out at around €40k per average customer who probably had an average mortgage of €300k. (It's €50k but it will cost AIB a lot in administration and they have probably overprovided as well..)

Brendan
Wow. So its likely the redress will also include a move from current mortgage rate to ECB plus maybe 1.25 ?

I recently submitted a request to change from SVR to 2 year fixed but never got a reply, was wondering what was taking so long :)
 
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