AIB have now begun contacting customers as they implement the now published decision of the Financial Ombudsman in relation to the ‘Prevailing Tracker rate’ issue. The Bank is not offering affected customers a reduced Tracker rate, but is applying the facts of one case to all. Instead of weighing up individual cases, AIB is providing each customer with a flat 12% reduction of the mortgage balance as of the date your fixed-rate period ended and a refund of the interest paid on that same 12%. We have seen no basis for how this 12% calculation was decided upon.
You are likely to be contacted if you received a letter from AIB in February/March 2018 offering you €1,615 by way of a nominal amount for compensation and some money toward independent advice.
The Financial Ombudsman found that there was a breach of contract by the Bank in not offering the tracker rate after the end of the fixed period and that this was not merely a service failure. However, the Financial Ombudsman declined to “interfere with the Provider’s commercial discretion” and has therefore not directed that the Bank offer its customers the last available tracker margin of 1.5%.
AIB’s approach – in applying the decision of the financial ombudsman across the board – does not take into account the individual circumstances of each case. Customers who faced the pressures of arrears, who prioritised making their mortgage payments above all else, who faced repossession and insolvency, who lost investment properties and their family home are not having their experiences factored into the 12%.
We are currently advising clients who feel that they may be entitled to more than the one-size-fits-all amount being provided by AIB.
Please feel free to contact us now for us to investigate your claim, challenge the bank and maximise your redress.
