From August 2015, AIB has been conducting a comprehensive review of customer mortgage accounts with regard to tracker rates. The review has been conducted in accordance with the Central Bank of Ireland framework and independently assured by KPMG. The review includes putting customers back on the correct rate, refunding, compensating, and access to an independent appeals process.
Our review, which is still progressing, has found we fell short on our obligations to some customers, including instances where we were not sufficiently clear with them or where we failed to honour contractual commitments. This resulted in some customers being charged too high a rate of interest on their mortgage accounts.
Message from Group CEO Bernard Byrne
“On behalf of the Bank, I apologise to customers for these failures, which should not have happened and which we now intend to put right. I also want to assure customers that we are taking this issue very seriously and while we have made very significant progress, we are and will continue to do everything we can to reach a conclusion as soon as possible.”
Where an account is currently on the wrong rate, in order to prevent further detriment for the customers identified as impacted, AIB corrects the interest rates on these accounts.
Where an account has been charged the wrong rate of interest, AIB adjusts the impacted customer accounts and provides redress and compensation.
Where customers who were not on a tracker rate but had the contractual option to choose a prevailing tracker rate at the end of their fixed rate period, and could not avail of that option between October 2008 and December 2013 when the tracker rate had been withdrawn, AIB makes a compensation payment.
In addition a set payment towards the cost of independent professional advice is also being made available to impacted customers and the bank have established an independent appeals process. An independent third party, KPMG, is reviewing key aspects of AIB’s work. These steps are in line with the principles outlined by the Central Bank.
Our priority remains to put things right for our customers who have been affected. We have put in place a customer Helpline 1800 235 460 (or +353 17715888) which is available Monday to Friday between 8am & 7pm to assist with any queries our customers may have.