AIB 'should add 6,000 customers' to tracker mortgage bill

AIB 'should add 6,000 customers' to tracker mortgage bill

A mortgage rights campaigner has called on the newly-appointed AIB chief executive to add 6,000 customers to its tracker mortgage redress and compensation scheme.

Brendan Burgess of Askaboutmoney.com claims Colin Hunt should start his tenure by adding more customers so far excluded from the bank’s tracker scheme.

Disputing the claim, AIB has said that “the customer grouping in question did not hold a tracker mortgage”.

Mr Burgess said the customers started on fixed rates but had a contractual right to a tracker at the prevailing rate when the fixed rate period ended. He claims AIB subsequently failed to offer the customers tracker rates when the fixed-rate period ended.

The bank said that although the customers should have been entitled to a tracker at the end of the fixed rate, they did not end up losing any money.

“Notwithstanding this fact, AIB has provided them with a payment. We are in the final stages of the tracker mortgage examination with payments issued to the vast majority of customers. Over 99% of impacted customers have received payment. The review is ongoing and is subject to continuous engagement with the Central Bank,” a spokesman for AIB said.

It has offered the customers in question in the region of €1,600 for the mistake, it is believed.

Mr Burgess has said the customers have a right to appeal to AIB’s independent appeals panel and “should do so immediately”, saying affected customers can access ways to make their appeals.

“We have taken legal advice on this issue and we will be taking a High Court action to determine it for once and for all. We will begin fundraising for the High Court action in the coming weeks,” Mr Burgess said in a statement.

AIB 'should add 6,000 customers' to tracker mortgage bill

If the appeal were successful, it could cost AIB up to €200 million in additional redress and compensation for its tracker bill, he claims.

The industry-wide €1 billion tracker mortgage scandal involves around 40,000 cases. It happened when customers were wrongly moved onto more expensive loans by more than a dozen lenders.

In a recent report, the Central Bank said mortgage lenders had paid out €647m to customers by the end 2018, up €67m since August.

The €1bn bill will include compensation paid to wronged customers, as well as administrative costs.

Meanwhile, Irish mortgage rates remain well above the eurozone average, according to Central Bank figures. The interest rate on all new mortgages was 3.01% in January, while the average rate for the eurozone stood at 1.78%, the regulator said.

More on this topic

Tracker Mortgage Scandal: Hundreds may find their complaints judged out of date Tracker Mortgage Scandal: Hundreds may find their complaints judged out of date

Concerns raised about bank timelines for tracker mortgage scandal Concerns raised about bank timelines for tracker mortgage scandal

Higher compensation granted in appeals of over 1,000 tracker mortgage casesHigher compensation granted in appeals of over 1,000 tracker mortgage cases

99 people lost their homes over tracker misery99 people lost their homes over tracker misery

More in this Section

British Airways sorry for email error announcing wrong flight cancellationsBritish Airways sorry for email error announcing wrong flight cancellations

Thousands of holidaymakers face chaos over British Airways strikesThousands of holidaymakers face chaos over British Airways strikes

40 jobs to be created after whiskey distillery given planning permission in Donegal40 jobs to be created after whiskey distillery given planning permission in Donegal

Trump announces new retaliatory tariffs on ChinaTrump announces new retaliatory tariffs on China


Lifestyle

These green pancakes are topped with avocado, tomato and cottage cheese.How to make Jamie Oliver’s super spinach pancakes

Who else can pull off a look described as a ‘hip-hop Michelin woman’?As her new EP drops, this is why there will never be a style icon quite like Missy Elliott

The classic white-tipped look is once again in favour, and celebs are loving it.The French manicure is back – 5 modern ways to try the trend

The A-Listers hiding in plain sight: As Rihanna is spotted at the cricket, who are the celebs who have been living under our noses in Ireland? Ed Power reports.Celebs in plain sight: The A-Listers living under our noses in Ireland

More From The Irish Examiner