AIB admits 1,100 more tracker scandal victims Customers will be refunded average of €6,000 over error

Source: Irish Independent Charlie Weston

AIB STATEMENT :

AIB has completed a comprehensive review of customer mortgage accounts with regard to tracker rates. The review was conducted in accordance with the Central Bank of Ireland Framework.

The review found that we fell short on our obligations to some customers.

We took certain steps to correct our failure depending on the individual customer’s circumstances, which included:

• Writing to all customers who were affected.
• Refunding customers who made overpayments and providing compensation.
• Making a compensation payment to some customers where there was a service failure.
• Providing a payment towards the cost of independent professional advice.
• Providing all customers who were affected with details of the independent appeals process.

These steps are in line with the principles outlined by the Central Bank, and key aspects of our work were reviewed by an independent third party, KPMG.

Should there be any updates for affected customers, we will write to them.

Our priority is to put things right for our customers who have been affected. If customers have any queries in relation to the Tracker Mortgage Review, they can call our dedicated Helpline on 1800 235 460 (or +353 1 7715888) between 8am and 7pm, Monday to Friday

Prevailing Rate issue

In early February we announced that we had made an additional provision, primarily in relation to an FSPO decision on an individual complaint relating to a tracker complaint, which was then at a preliminary stage. This complaint is now concluded with the FSPO. While this complaint involved a number of complex issues, the Bank has decided to accept the decision in full, and to apply the decision to other customers within the same cohort. Customers do not need to take any action. 

We have reviewed each account individually and calculated the balance adjustment and interest payment required in each case. This relates to reducing a mortgage account balance by 12% from the date the fixed rate period in question ended, refunding by cheque interest charged on that 12% capital amount during the intervening period and adjusting the repayments going forward given the capital reduction. Where accounts are closed the adjustment will be made by a cheque payment.

What will happen next? 

Customer accounts are currently being adjusted. Over the coming weeks and into August, Customers will receive written confirmation of the balance adjustment made on their account and a cheque for the interest refund due.  If customers have any queries they can call our dedicated FSPO Mortgage Review helpline on 0818 300 070 (or +353 1 7715912) between 9am and 5pm, Monday to Friday.

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