Bank of Ireland increase differential on tracker rates

THE ADJUDICATORS RESPONSE - PLEASE NOTE THE FOS is not going to support us - does anyone know how to contact all affected consumers's in one go ??? standing alone is not the solution - what happens if BOI increase the rate again? they have profited from this rate increase and they are now laughing at us all the way too the bank - and I am a mortgage prisoner despite what the adjudicator says ! too old and not enough earnings to switch mortgage provider.

Dear Mrs

I am writing further in relation to your complaint.
To respond to the points raised –
• It has provided us (as an independent and impartial resolution service) in confidence the relevant balance sheets to show the increase is legitimate. And that it has applied it at a fair level i.e. has not gone too far. In certain circumstances business’ and indeed consumers’ can submit information to us in confidence. This information will contain sensitive information such as salaries etc – which would breach individuals data protection, so it is understandable why it would not want it divulged.
• I am satisfied that this information is contained in the mortgage offer itself and is clear and unambiguous. It is not open ended as there has to be legitimate commercial reasons for doing so and by how much.
• I do not agree that this product has been miss-sold, for reasons explained above. I have just looked at your individual mortgage and complaint.
• Often business’ offer preferential rates to attract new customers. But because we do not regulate or police the industry (The Financial Conduct Authority do) it is not something that we have any involvement or input into.
• Because they are no penalties (such as an Early Redemption Charge) I do not agree that you are trapped. As you have intimidated, and as with anything, if you are unhappy with a particular service or product then you are free to shop around and move your business elsewhere. But as I have referred to in my opinion, the rate is still a competitive one.
• In my opinion it is not an unfair term. The increase has to be applied fairly.
• It is not solely to increase the profit margin, it is because it was not profitable. And it cannot profiteer from the situation.
• I have attached the relevant Basel III paper for your information. As you will see it is a very complex matter of what business has to hold which capital reserves and by what date.
To conclude I am satisfied that the terms allowed the change and the reasons put forward by the bank are legitimate commercial reasons.
However, as a reminder you have the right to ask for your complaint to be referred to an ombudsman for a final review and decision of your complaint. If you would like this please let me know by 4 December 2014.

To all of you out there who have been waiting for the FOS to adjudicate before you commit to the "class action"....You have your answer. We are on our own. So ladies and gents it's time to either decide to fight and put your hands in your pockets or carry on paying...and paying...... Wait until the next "differential rate rise" ...now BOI know they are in the clear then it's open season on landlords as cash cows...Merry Xmas.....for BOI.

The Financial Ombudsman is quite clearly interested in only one thing, and that is ensuring the banking system survives, remains as corrupt as it is. It is not interested in doing what it was set up for, and that was looking after the common man. Fight it, fight the banks in every way you can, thus is a war, you are on your own. Fight, or die fighting, the only other option is a coward's way. Your choice... Do you stand up and fight with all your might or not?

Some people say apathy rules and the rest can't be bothered.....

As the court case for West Brom is just weeks away I for one will be waiting for that outcome, before I commit any more money here, at this stage it seems pointless to do so, If M Smith is successful then hopefully he will be able to offer us a similar deal where as we get some or all of our overpayments back.

First post - I was a residential mortgage holder with Bank of Ireland (originally Bristol & West), on a tracker mortgage that was increased from a differential of 1% to 3.99% as a result of BoI's changes. Fortunately, I was nearing the end of my mortgage and so, elected to pay it off shortly after the increase was applied. Consequently, as I only ended up paying about £150 extra, I did not sign up to the joint action.

Nevertheless, I put a complaint in to the FOS (after BoI rejected my complaint) and I have also just received the FOS's rejection of my complaint and I am just putting together my appeal.

There are a couple of points, in my complaint to the FOS, that do not seem to have been covered in much detail here or anywhere else I have looked:

1) The documentation I received in 2007, relating to BoI taking over my mortgage, from Bristol & West, stated that "Your interest rate will not be fixed or otherwise changed as a result of the transfer”. I am maintaining that the justification, provided by BOI, for changing the interest rates, is due to problems elsewhere within its business, particularly within its Irish mortgage market (using publicly available information, I provided evidence to support this) and, therefore, BoI has changed the interest rate as a direct result of the transfer of my mortgage, in breach of the terms of the transfer.

2) I also referred to the fact that the mortgage terms, that BoI state allow them to increase the tracker differential, come under the European Council Directive on unfair contract terms, which states that “A contractual term which has not been individually negotiated shall be regarded as unfair if, contrary to the requirement of good faith, it causes a significant imbalance in the parties' rights and obligations arising under the contract, to the detriment of the consumer”.

Interestingly, the FOS response, rejecting my complaint, failed to cover these two points, merely being made up of standard paragraphs saying that BoI had provided details of its funding costs and that the increase is "fair".

Anyway, I will be submitting an appeal, asking them to address all the points I made and not just the ones they have standard default responses prepared for.

Assuming, the appeal gets turned down, as the FoS seems to be more interested in supporting its paymasters than the public, then I also intend to petition the European Parliament on point 2 above. No doubt this could be overtaken by the court case(s).

It may only be £150, in my case (and I really do feel for those of you for whom the increases are life changing) but it is a point of principal and fairness and I intend to rattle BoI's cage as much as is reasonably possible before I let this one go.

Reply to the comment left by "Rob Dawbarn" at "21/11/2014 - 13:16":

Does anyone know the exact date that RMC1997 was replaced by RMC2001?
I have a similar situation to Rob where BOI seem to be a bit confused about which conditions apply.

Reply to the comment left by "P Doff" at "23/12/2014 - 07:25":

@ P Doff

My copy of RMC 2001 has 11/01 on the back so I guess that will be when they replaced RMC 1997. When did your mortgage start ?

In your first post, you say that your contract refers to condition 6(f) even though BOI have sent you RMC 2001 which they seem to think apply. Condition 6(f) is actually the number of the important clause in RMC 1997 !

In my case, my tracker contract also refers to 6(f) and I was sent RMC 2001 with it. At first, I thought Bristol and West must have sent me an out-of-date contract since the important clause in RMC 2001 is 6(t). However BOI are now saying I "would have been sent" RMC 1997 with the contract (which is not true). According to BOI, RMC 1997 apply to my tracker because those are the RMC mentioned in my mortgage deed from 1999 when my mortgage originally started.

What RMC are mentioned in your Mortgage Deed ?

It seems we're in a similar situation. Perhaps we could contact each other to compare notes ?

Just curious if anyone been threatened with a visit from BOI field collectors.

I have continued paying the original payment, but account shows in arrears as result of rate increase. BOI wrote to me this week to say my account details will be passed onto one of their field collectors in the next 7 days, and they will visit the property to make an assessment and verify occupancy.

Really worried now not sure how to respond and what their plans are.

Is it too late to join boi class action and what are costs please

thank you

We will have more news and instructions after the West Brom case hearing on the 21st of this month.