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Couple to get €35,000 back after bank overcharged them on loan

 

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Mr Deering recently found against AIB in a disputed tracker mortgage case, which means that the bank will now likely have to pay out on an additional 6,000 tracker cases (stock photo)

Mr Deering recently found against AIB in a disputed tracker mortgage case, which means that the bank will now likely have to pay out on an additional 6,000 tracker cases (stock photo)

Mr Deering recently found against AIB in a disputed tracker mortgage case, which means that the bank will now likely have to pay out on an additional 6,000 tracker cases (stock photo)

A couple who were overcharged for a loan from a bank have been awarded compensation of €35,000.

The bank, which had failed to state the correct interest on the loan, was ordered to make the payout by the Financial Services Ombudsman, Ger Deering.

His latest digest of 33 rulings also includes one against an insurance company that cancelled a motor policy, claiming it had not received a key document from the consumer.

It turned out the document had been trapped in the insurer's email firewall.

Mr Deering ordered the unnamed insurer to pay compensation of €9,000.

The ombudsman found in favour of consumers and small firms in some 200 cases last year, but 238 cases were not upheld.

Mr Deering recently found against AIB in a disputed tracker mortgage case, which means the bank is likely to have to pay out on an additional 6,000 tracker cases.

However, the latest summary of cases he has published do not involve trackers.

Instead, tracker case updates are to be released in the coming weeks. He has received 1,800 tracker complaints in the last two years.

Mr Deering deals with a wide range of complaints relating to insurance, banking, investments and pensions. His decisions are legally binding.

The digest of decisions he published shows he forced an unnamed lender to pay compensation of €15,000.

This was because the lender failed to update an individual's Irish Credit Bureau rating to show their debt was clear. This failure meant the consumer's credit rating was negatively affected.

The ombudsman also ordered another bank to pay compensation of €15,000 to a company.

This was because the bank threatened to close its bank account due to "outstanding debt", which turned out to be an error.

Another insurer had to come up with €300 for a policyholder with pet insurance who had a claim rejected due to the pet's weight.

And compensation of €3,000 had to be paid to a woman who received less than she expected from a claim on a dental policy, because of the poor information given to her by the insurer.

Mr Deering said that by publishing the decisions, he aimed to enhance transparency and understanding of his powers and the services provided by the office.

He published 394 legally binding decisions throughout 2019.

"I believe it will be evident to anyone who reads these decisions that the work of my office can have a very profound impact on many of those who use our services," Mr Deering said.

Irish Independent