In August 2015, AIB started a comprehensive review of customer mortgage accounts with regard to tracker rates. The review is being conducted in accordance with the Central Bank of Ireland Framework and is being independently assured by KPMG. The review involves identifying customers impacted by a failure, putting these customers back on the correct rate, refunding and compensating them, and providing access to an independent appeals process.
The review, which is ongoing and nearly complete, has found we fell short on our obligations to some customers, for example instances where we were not sufficiently clear with them. 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.”
In order to prevent further detriment, our first step is to correct the rate on impacted mortgage accounts that are open and on too high a rate of interest. Where an account has been charged the wrong rate of interest, AIB adjusts the impacted customer accounts and provides redress and compensation.
Some customers who have an option to choose a prevailing tracker rate at the end of a fixed rate period could not avail of that option between October 2008 and December 2013. This was because we had withdrawn tracker rates during that time. To acknowledge this failure, we made a compensation payment to these customers.
In addition to providing any redress and compensation due, we have also given a set payment towards the cost of independent professional advice. We have established an independent appeals process and have appointed an independent third party, KPMG, to review key aspects of our work. These steps are in line with the principles outlined by the Central Bank.
Our priority is to put things right for our customers who have been affected. If customers have any queries, they can call our dedicated Helpline on 1800 235 460 (or +353 1 7715888) between 8am & 7pm, Monday to Friday.