Bank of Ireland tracker mortgage % increase

rate_hike

Atleast the FOS FCA and OFT have anounced that they are looking into it now, just have to wait and see the outcome, could be months ?

Flying_Banana

Update on my earlier post.

BoI gave their final answer on the matter and I passed details (FULL details) to the Financial Ombudsman. This included 54 letters with the wording;
"Interest Rate (Current Rate: x.xx%):
From the date of this letter until the end of the mortgage term, the interest rate we will charge will be 0.69% above the BOE Base Rate."

I then had a letter from BoI stating that they did not accept that promissory estoppel applied and that clause 6m still applied. They reasoned that their "intention" was not to change the original contract when they wrote those 54 "standard letters". They did however admit that the wording was "ambiguous" and so they agreed to return my interest rate to the original differential and only change in line with BOE base rate.

I sent a copy to the FOS who then phoned me. I stated that I was still not happy since the BoI letter was simply number 55 stating my interest rate differential was fixed and I could see no reason to trust it any more than the preceding 54. I asked the FOS to get BoI to confirm their intention in writing their letter.

Yesterday I had a phone call from the FOS confirming that BoI had communicated that their intention was not to alter my differential for the duration of the mortgage. I asked for a copy of this in writing. The FOS are sending me a redacted copy.

BoI have climbed down for 1200 people because of what they call "ambiguity" in a "standard letter". They have not admitted that promissory estoppel applies, (which says nothing about whether it applies or not) but have done a tactical move.

It is my opinion that they would only have made this tactical move if they knew they would lose in court. It seems unfair that those who have kept all of their paperwork and have the ability and initiative to fight heir cause and present a complex case should get one outcome while those who may be unable to mount a challenge get another outcome. At the conclusion of the contracts (in 2007) there was no difference between customers. Every mortgage holder had the right to flex up or down. Every mortgage holder therefore had the right to receive the "ambiguous" letter with the particular wording stated above.

I believe the FOS should rule that all holders of these flex mortgages should be treated equally and returned to their original mortgage interest differential.

I still do not think I am finished with this until I see something in writing upon which I can rely, and that has not happened yet. Best of luck to all.
FB

I am copying this to the Property118 website and also to the FOS.

BR_Landlord

Absolutely agree. Citing ambiguity has the effect of creating ambiguity.

I like your point about there being in essence no difference between the customers but the reversion of the 1200 is convenient for FCA as a face saving excercise, I am not hopeful it will be extended to the full 13500.

JimmyTheWig

BR_Landlord wrote: »

I like your point about there being in essence no difference between the customers

Presumably the difference is that some of the customers had a letter saying that their differential was fixed and others didn't?
The letter was a mistake, but it got sent out and they are having to stick by it. That's great news for the people who got the letter, but that doesn't mean that everyone will benefit from it.
If Tesco made a mistake and something was scanning at the right price, only the people who happened to buy it at that time would benefit. You couldn't demand that Tesco sell it to you at that price because you had the ability to be in the store at that time.

Flying_Banana wrote: »

It seems unfair that those who have kept all of their paperwork and have the ability and initiative to fight heir cause and present a complex case should get one outcome while those who may be unable to mount a challenge get another outcome.

But it doesn't appear to be those who are fighting who are getting the positive outcome. It appears to be all of those who got this particular letter.

what15myname

For those of us not having read this thread from its beginning, could some kind person give us a recap on what has been done? A link to the letter which BoI sent some people about their rate being fixed for the duration, and another to the class action site would be very helpful in particular.
Up for it?

Jaketake

It has been a considerable amount of time since the treasury has written to the bank of ireland and I understand that Bank of Ireland has sent back a reply a few weeks ago. This has still not been published and I don't understand why. It would be interesting to know what the response was. Anyone have any idea what is going on?

plimsolls_on

I have been off this site for a while and am surprised that some residential customers have had their diff rate reset to the original %.
Is this only if

a) you have received the 'magic letter' in 2010 and kept a copy and
b) are using this as your argument or
C) applies to everybody THEY sent the letter to

I definitely received correspondence during last few years but following house move am unable to locate.
My complaint is currently with the ombudsman waiting for reply.
Cheers

JimmyTheWig

plimsolls_on wrote: »

Is this only if

a) you have received the 'magic letter' in 2010 and kept a copy and
b) are using this as your argument or
C) applies to everybody THEY sent the letter to

As far as I am aware it is (c) - everybody who was sent the "magic letter" (technically, I believe, one of two "magic letters") has now been restored to the original differential by BoI whether they still have the letter, whether they knew they had the letter, whether they told BoI they had the letter, or not.

plimsolls_on

Oh s����t this means I have not been included if have not already received notification??
Thx

rate_hike

Don't hold out much hope now the OFT have Passed it over to the FCA they gave the Bank the go ahead in the first place, probably wont bother answering our complaint.