Bank of Ireland has said the cost of compensating thousands of mortgage customers it overcharged could rise to €200m from €25m after it identified 6,000 new cases.

The affair will curtail the institution’s interest margin by 1 basis point from 2018 onwards, the bank said in a stock market notification.

…In an update to the market on Thursday afternoon, Bank of Ireland said it will set aside a further €150m to €175m in its current fiscal year to cover redress and compensation for the 6,000 new cases.

The bank had earlier set aside €25m to compensate 600 tracker customers it previously identified and another 3,700 customers who had the wrong interest rate applied to their mortgages.

Bank of Ireland expects mortgage compensations costs to rise to €200m (Financial Times)

Pic: RTÉ

32 thoughts on “How Much?

  1. John

    Business story, keep to business pages – there’ll be no breathless Paul Williams pieces, no menacing music, no accusatory tones no “known to the gardai” type comments

    1. dav

      I do hope the government keep up their persecution of those who make welfare claims – really shows the people where their priorities lie…

  2. martco

    dontcha worry the headlines tomorrow will be about John Halligan again or visiting N.Korea or storm Peter or some other nonsense

  3. phil

    From 2000 to 2006/7 I had a mortgage with ulster bank , Variable rate. Around 2006/7 I saw on a website mortgage rates published on a website. The Ulster bank rate was quite low, I checked mine and found I was 2% over their stated rate. I couldnt understand , so at the next opportunity I called into my branch and queried it. I was told OMG you are on the wrong rate! manager was called, We did a bit more digging and discovered I was being overcharged for about 4 years. The manager apologised and assured me the rate would change to the correct rate from the start of the next month, which it did.

    I asked if I would be compensated for the overcharging. I was told No, and If I checked my contract , the responsibility was on me to make sure I was on the correct rate. I grudgingly accepted , but told them I was so disappointed that I was going to move bank, which I did, and should have done anyway as the other bank have a better rate than UB’s current rate. That was that , tough luck on me, and I just moved on.

    Now Im wondering if I should write to them, and if there is any chance I might get back what I was lost? Im sure as Im no longer a customer , thats that…

    1. len

      Ask for all copies of correspondence and run it by Padraig Kissane if you feel you have a case. I took the banks word as final until it became clear that it most certainly is not. When Padraig took over my tracker complaint they dropped the ‘tough shit now go away’ attitude and actually engaged with him.
      if you want to go it alone off the back of the tracker scandal, ask for all documents and make a formal complaint. If you don’t like the answer, you can appeal to the ombudsman.

      1. postmanpat

        I was (still am) on a tracker and Padraig Kissane staff were calling me up advising me to switch to a fixed rate one point above the current tracker rate which at the time was on the way up every other month. I got phone calls at least 3 separate times , trying to put the $hits up me saying the rates were only ever going to go up and up. I kept saying no. This was around 2008 right before the crash. Luckily, I stuck to my guns and 6 months later rates dropped like a stone and stayed there. Sure he helps people get their tracker back but it was agents like him coercing customers to switch off their trackers in the first place.

    2. Anne

      You are absolutely entitled to a refund. Swines.

      You can go it alone with a letter, but make sure to threaten them with legal action and the ombudsman and that you’ll be having a mortgage expert look over the refund due to you, so it better be correct.

      By Phone
      To help us understand what has gone wrong and how we can help, some customers find it easier to talk through their issues. To talk to a member of staff, you can call us on 1850 424 365

      Send a letter with details of your complaint, you account number and sort code to your branch or to:
      Complaint Handling Centre
      Ulster Bank
      PO Box 145
      Dublin 2

      Letter is your best bet. Maybe call first and get an idea of how long you’ll be waiting for your money back.. and to get the mortgage account number that you’ll need to refer to on your letter. Name, DOB and address should get you your mortgage account number. It did for me anyway, when I queried a mortgage I had previously with EBS. If they don’t want to giv e you your mortgage account number over the phone, request a full statement of the mortgage account, with the applicable rates stated, posted out to you.. these are your details, you are entitled to them.

      1. gorugeen

        Ulster Bank are the most unprofessional, inept gobshite I’ve ever had to deal with. Have your solicitor do it. It’ll save you time, money and possibly your mind.

    3. edalicious

      It would seem to set an extremely dubious precedent if a bank, or any business for that matter, could basically deliberately try to do you out of money without telling you and then turn around and say it was your fault for not catching them sooner.

      1. Anne

        The precedent was set a long time ago by the banks.. They’ve been caught for deliberate overcharging with other things, prior to this latest scandal with mortgages.

    4. Peter Dempsey

      Surely if you’re overcharged you should be refunded the extra interest you paid while you were on the incorrect rate?

      Compensation over and above that – I can understand them saying no to that – but not giving you back what you’re entitled to is wrong.

  4. realPolithicks

    The biggest joke here is that the banks are being allowed to self investigate this problem. There should be an independent group reviewing the mortgage books in all these banks as clearly they can’t be trusted to voluntarily disclose information, particularly their own “errors”.

    1. Anne

      I’d be requesting a review of your mortgage account, along with a statement of payments and rates applied posted out to you, so you can have it independently checked.. and advise them you’ll be doing that.

      Also, if tracker rates were available at the time you took our your mortgage with your bank, but you weren’t offered a tracker or were refused, you’re entitled to any applicable refund in the difference.
      If the bank can’t or won’t confirm if a tracker was available, the solicitor you dealt with should have the details on the loan offer sent to them. Roughly, trackers were available until 2008.. even with existing mortgages, customers should have been able to switch to them, if they requested it.

      1. realPolithicks

        You’re right Anne, anyone who has taken out a mortgage in the last 15 years should have their loan independently reviewed.

      2. Cian

        anne, you say “if tracker rates were available at the time you took our your mortgage with your bank, but you weren’t offered a tracker or were refused, you’re entitled to any applicable refund in the difference.”

        is this true? can you provide a link?

        or are you saying what you would *like* to be true?

        ’cause later in the same post you say “even with existing mortgages, customers should have been able to switch to them, if they requested it.” which suggests that the banks didn’t have to *offer* the tracker.

        1. anne

          It doesn’t suggest that. It means you could have chosen a variable rate but wanted to switch to a tracker rate.. if the bank refused your request, but trackers were still available with the bank, you’re entitled to any difference in payments. You can make your own enquiries if you cant find a link.. I don’t know how much the banks are advertising their wrong doing.. a solicitor can advise you too.

          1. anne

            Just to clarify, if a bank stopped offering trackers -typically around 2008, you don’t have a claim to one if you were refused a tracker..but if trackers were not officially stopped at the bank, you requested one & were refused then you should have a claim.

          2. anne

            That’s what a mortgage advisor told me by the way.. I’m not sure if the banks will have that stated anywhere on their sites. The usual verbiage on their sites about tracker redressing is very us if you think you have a claim sorta thing.

          3. Brother Barnabas

            The last lender to be offering trackers was PTSB, but, in the last 18 months, tracker availability was restricted to a certain LTV ratio (I think it was 70%, but can’t find it anywhere). Problem for people now is trying to determine value of property back in 2010-2012 when the ar$e was falling out of things.

          4. Frilly Keane

            Any of ye know if PTSB have to offer Tracker conditions on a bitta’ve a Top Up ( on an existing PTSB Tracker)

            LTV still well below .7
            And the way prices are going ….

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