AIB Who has complaints at the Ombudsman stage on the simple vs. compound interest issue?


Registered User
Letter sent to ombudsman today with final response from AIB, simple interest calculations and compound interest calculations


Registered User
Just received a letter back from AIB
They are looking in to the issue I raised at least they responded
Included reference number & complaint number


Registered User
We are now at stage 4. Got a call from mediation contact in ombudsman this morning. Have declined mediation as can’t see the point in relation to this issue so now being sent to on to investigation team


Registered User
Do you have a template drafted for the complaint to the Ombudsman? Late to the party and am now at Stage 2.

Ana Carr

Registered User
I am trying to figure out where this is at. If you have complained to AIB and/or the Ombudsman, could you reply to this thread please indicating which stage you are at.

Stage 1 - Complaint made to AIB - awaiting a response
Stage 2 - Reply received from AIB on x/x/2021 . Haven't complained to Ombudsman yet
Stage 3 - At mediation stage with Ombudsman
x/x/2021. Reply received from AIB
y/y/2021 Complaint submitted to Ombudsman
z/z/2021 Received a call from the Ombudsman's mediation person

Stage 4 - At investigation stage with Ombudsman.
n/n/n Mediation concluded without an agreement. File sent for investigation.
At this stage - The Ombudsman sends questions to AIB and AIB's answers are sent to the borrower to respond. Then the borrower's response is sent to AIB, and so on...

This stage can last months until both sides say that they have nothing further to add.

Stage 5 Adjudication Stage with Ombudsman

Both sides said that they had nothing further to add and now the Ombudsman has to make a decision.

Stage 6 Preliminary Decision issued.
Stage 7 Legally Binding decision issued. Both sides have 30 days to appeal to the High Court.

Stage 8. 30 days after Stage 7, the decision is binding on both side.
Stage 2


Registered User
Stage 2. AIB responded on 12/10/2021 stating that “we are looking into the issue you raised” etc. Awaiting final response before complaining to Ombudsman.


New Member
Hi Brendan, We're a little further on in the process, we have concluded Stage 4 (Mediation) and received a response that we expected.
Honestly not sure what to do next as we can't afford a high court battle. AIB know this and are confident that like us many will not proceed to the high court stage.

Could it be that this will come down to the Ombudsman and whether or not they can adjust or alter their previous ruling that allowed AIB proceed with the Simple Interest formula for calculation?

AIB have considered your points of view and have come back to say that they are confident in their decision to apply the FSPO decision in the manner they did (extract below with a link to the full decision below that) across the cohort of customers with similar terms and conditions which includes yourselves.

They say that they are standing over their decision to apply simple interest and not compound interest and are prepared to defend this decision if you opt for formal investigation of your complaint.

The options now open to you are
· Close your complaint (with the option to re-open if new evidence comes to light)
· Withdraw your complaint in order to pursue it in a different forum e.g. court etc.
· Opt for formal Adjudication by the Ombudsman

Mediation has been an informal, verbal process whereas Investigation and Adjudication is our formal, written process. If you opt for Adjudication you will be invited to make a further submission in case you wish to add any information to your complaint form and the original submission you made to the office. However, I must remind you that anything you learnt from me or the Provider in mediation is bound by confidentiality and cannot be presented as evidence in Adjudication.

If you take up this opportunity your submission will be copied and sent to the provider for their consideration. The provider will also be asked specific questions related to your complaint. When the provider's response comes into the office - "the company file" - you will be sent a copy for your consideration. Any response from you or the provider is copied and sent to the other party for consideration. This part of the process is known as "document exchange" and it continues until both parties have finished responding to each other's submissions.

The Ombudsman then considers all the evidence, laws, codes, terms and conditions, behaviour etc. and makes a legally binding decision as to whether a provider has done something wrong or not. The Ombudsman has the option of holding an Oral Hearing during investigation where he can cross examine the parties with the power of a High Court Judge.

There are four possible outcomes to adjudication:
· Complaint upheld
· Complaint substantially upheld
· Complaint partially upheld or
· Complaint rejected

The legally binding outcome can only be appealed to the High Court and within 35 days of the final decision.

Our Investigation/Adjudication takes between 9 to 18 months from beginning to end.

The process is free of charge. If you wish, you can appoint a third party to act on your behalf (e.g. a solicitor or other financial adviser), but if you choose to do this you will be entirely responsible for discharging any professional fees incurred.