Bank offered me "pre-vailing rate" of circa 5.7% in 2011, which I naturally refused and stayed on SVR.
Now in this most recent letter other week they offer me the 3.32% and say that that was the prevailing rate back in 2011 when I came off my fixed.
Hi kop
This could be quite important if anyone takes a legal case.
I have always argued that they can't set the prevailing rate in retrospect. They must look at what the last rate was which was 1.25%.
The fact that you have been offered two rates shows how mad their process is.
Brendan
the prevailing rate should depend on the date the fixed rate expired and not on the date that AIB sets that rate retrospectively.
Brendan
Hi kop
As you quote it, I don't agree with it either.
Don't forget my preamble..."If there were some justification for setting it retrospectively,and I don't agree that there is any such justification,"
I agree that it should be the last rate offered to new customers or the average rate on the tracker mortgage book.
Brendan
some people arguing it should be the rates available at drawdown, that's another argument.
"I can confirm that the prevailing tracker rate is ECB (currently 0.75%) plus a margin of 5.15%"
Was the ECB rate not 1.5% in Sept 2011?
Hi Andy
Kop came out of his fixed rate in Sept 2011 when the ECB rate was indeed 1.5%.
But he got that letter after "winning" his complaint with the Ombudsman when the ECB rate had fallen to 0.75%
Brendan
I got my letter from AIB a week ago. I fall under one of the 4,000 people who were denied the option of a tracker. They are being disingenuous by advising the average tracker rate for the period 2008-13 was 7.9%. The product was withdrawn on 10th Oct 2008. In cases where the contact terms are not clearly defined, the contract must favour the consumer. Therefore, the prevailing rate is the last rate offered for a tracker product prior to it being withdrawn ie 1.25%.
I intend to submit an appeal and also simultaneously a SARS request.
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