Sunday 19 November 2017

AIB staff 'should get trackers restored'

(Stock photo)
(Stock photo)
Charlie Weston

Charlie Weston

Hundreds of AIB staff should have tracker mortgages returned to them, a leading expert in the area said.

It follows claims by unions at Bank of Ireland that the lender has conceded it now has to restore 2,000 staff to tracker rates and refund them.

AIB is denying many of its staff the low-cost rate, financial adviser Padraic Kissane said.

Mr Kissane, who specialises in tracker restoration cases, said large numbers of AIB staff members on trackers had opted for a fixed-rate mortgage when European Central Bank rates shot up.

When the fixed-rate period ended they should have been given the option to return to a tracker rate. This is usually set 1pc to 1.2 percentage points more than the ECB rate.

But they were denied the tracker rate. Other staff members were put back on what the bank claims is a tracker, but is set at 3.67pc more than the ECB rate. Mr Kissane said this could not be reasonably regarded as a tracker rate.

Some staff have been put on "staff mortgage rate" which is lower than variable rates, but not as low as a tracker rate, he said.

"There are hundreds of AIB staff who have been denied tracker rates. Maybe not as many as in the case of Bank of Ireland, but I have a large number of AIB cases," he said.

AIB said staff mortgages were part of the review it is carrying out in conjunction with the Central Bank on the loss of trackers.

"Staff customers form part of the ongoing review and if deemed impacted are redressed and compensated in line with the requirements of the framework," the bank said.

Irish Independent

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