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 programme 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.
“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 for the customers identified to date, AIB in the first instance corrects interest rates on these accounts and writes to customers to outline the new interest rates and repayment amounts.
Next, AIB adjusts impacted customer accounts and writes to customers to provide redress and compensation. Details of 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.
AIB is now well advanced and has redressed and compensated the majority of impacted customers who, as a result of the Bank’s actions, were identified as no longer on a tracker or were incorrectly on a higher tracker margin for a period of time.
The overall review is ongoing and 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.
If your account has been affected, we will write to you to confirm this.
For example, if your mortgage account falls into one of the below categories, it may have been impacted:
You were on a tracker interest rate and then moved to a different rate, for example a Standard Variable Rate (SVR) or a Fixed Rate.
You were on a tracker interest rate and your margin increased.
Customers who have remained on their correct tracker rate margin are not affected.
We commenced writing to customers in 2016 who were impacted by the review and we will continue to do so until the review is complete.
For impacted accounts, you will first receive a letter to inform you that the account was impacted and where that account is currently on the wrong interest rate, we will correct this rate and advise you.
Impacted customers next have their accounts corrected and receive a letter to provide them with redress and compensation. By redress, we mean refunding customers who overpaid interest and correcting their mortgage balances and we will also pay compensation. At that point, a set payment towards the cost of independent professional advice will also be paid to customers, along with details of how to appeal through an independent appeals process. This letter also contains a financial summary detailing how we have calculated redress and compensation.
What can I do with my cheque?
Lodging your cheque covering redress, compensation and the independent professional advice payment will not affect your right to make an appeal, to make a complaint to the Financial Services Ombudsman or pursue this matter through the Courts. Also, there is no requirement for you to apply any of your redress and compensation payment amount against your mortgage.
Why did I receive a payment instruction form instead of a cheque?
This form is most frequently required when there are multiple parties to the loan living at different addresses. We need this form to instruct us as to how the cheque should be made payable.
Personal representatives of deceased borrowers
Where we are aware of the personal representative of a deceased borrower we have also sent them a redress and compensation letter along with a payment instruction form. Click here for more about the identification documents personal representatives will need to furnish to the bank before the cheque will issue to them.
I am appointing a third party advisor to assist me. Can I give you permission to deal with this advisor on my behalf?
Yes. We will need you to confirm in writing (through the approved “Third Party Advisor” form) that we can liaise with the Advisor in relation to the Tracker Mortgage Review. You can find this form here or you can contact our helpline to request the form.
Do I have the right to appeal the redress and compensation?
You have the right to appeal the actions we have taken to correct our failure.
What can I appeal?
You can appeal any aspect of redress and compensation within 12 months from the date on your letter in which the Bank made its offer of redress and compensation. Decisions made by AIB on the level of redress and compensation due to customers have been based on the information available to us in our review of impacted accounts. As part of the appeals process you can include any additional material financial information which you would like to have considered.
Who will hear my appeal?
All appeals will be heard by a fully independent appeals panel in accordance with the Terms of Reference and Procedural Rules of the appeals panel.
For more details on the panel membership click here.
How do I begin an appeal?
Customers who have received a redress and compensation letter can request an appeals application pack. To request an appeals application pack, please contact the helpline number provided in your letter. This pack will give you more details about the overall appeals process. Customers who decide to appeal will need to complete the appeal application pack and return it (together with any supporting documents relevant to their appeal) to the address set out in the form.
We have a team who are available to help you. Please talk to our helpline using the contact details contained if your letter.
We commenced writing to customers identified as impacted by the review in November 2015. The review is still ongoing and other accounts identified as impacted will be written to in due course.
If you do not receive a letter from us and have reason to believe your account may be affected, or if you have a question, please call our Helpline on 1800 235 460 (or +353 17715888) which is available Monday to Friday between 8am & 7pm, or visit us in your local AIB branch.
The majority of accounts that are impacted will be redressed and compensated by the end of the year and any remaining will be redressed and compensated in early 2018.
The overall review is ongoing. We are deeply conscious of the necessity to conclude this review as quickly as possible and our priority remains to put things right for our customers who have been affected. We expect to have all customers redressed and compensated by the end of March 2018.
Allied Irish Banks, p.l.c. is an authorised agent and servicer of AIB Mortgage Bank in relation to origination and servicing of mortgage loans and mortgages. AIB Mortgage Bank and Allied Irish Banks, p.l.c. are regulated by the Central Bank of Ireland.
