Bank of Ireland

[49scream]

Hi - just sent a S.A.R - (Subject Access Request) to the above for ERC amount from 2003. I'll keep you posted. A donation if I win - this site has been a minor revelation!

 

Does anyone have any info on BOI - can't seem to find any threads?

 

Many thanks.

[paddym]

welcome 49 go to search click on it and type in bank of ireland and the posts will come up !

[49scream]

Thanks PaddyM - found a few BOI but my raw deal is with BOI Home Mortgages Ltd who operate in England. Basically I was charged an ERC (six months penalty interest) after receiving a Cashback at the start of the mortgage term. Now there is a clause that states:

 

'In the event of a whole or partial redemption before XX/XX/XX (I did by about 12-months) the borrower will in addition repay 6-months interest on the amount of the redemption calculated at the Interest Rate. This interest charged for early redemption of the mortgage reflects the inducement which the borrower received to enter into this mortgage and is to recompense Bank of Ireland Mortgages for the loss which will be suffered if the mortgage is redeemed early.'

 

Seems a ERC to me but I'm just starting on the road and would value an opinion re: the cashback element.

 

Thanks 49scream

[paulpb123]

Hi 49scream,

I don't think the cashback is an issue here. Also, ERCs usually take the form of a percentage (commonly 5 or 6%) or 6 months interest. Yours is clearly an ERC which you can claim along with any other penalty charges BOI have charged. If you know the amount of the ERC and there are no other penalties then just send off the prelim which is at the top of the mortgages forum.

All the best,

Paul

[49scream]

Update - letter from BOIHM confirming receipt of SAR dated 15/01/07 - just crossing the days off now!

 

SAR's to Nat West & Barclaycard also sent....

[Shelty]

Have a look at mine & Lickthewallfatboy's threads, were both up against the same BOI that you are, and we're both at the court/defence stage. fyi though The wording that you've qouted is exactly the same as on my mortgage offer from them.....Good luck & keep us posted.

 

Shelty.

[49scream]

Hi All - in light of recent advice from Zoot I will put my claim on hold. However, I would be interested on other opinions here. This is with specific regard to BOI's ERC clause listed above. The jist of this is that BOI charged the 6-months penalty interest to off-set their losses. Now I presume this to be a) admin (maybe - but not £4k!!) and/or b) the cash-back not being recouped by the stipulated term being seen out (the tie-in).

 

Now there is no argument from me that I entered into and agreed to this clause. The point being I expected it to be reasonable and do exactly what it said - to recompense Bank of Ireland Mortgages for the loss which will be suffered if the mortgage is redeemed early. Clearly this is a penalty?

 

BTW I have no claim for late payent penalties against BOI.

 

Cheers - 49scream

[zootscoot]

Hi 49,

 

Wise move on discontinuing.

 

The courts are not concerned with whether or not the fee is a penalty. If there is no breach of contract the penalty provisions do not come into play. Unfortunately the mortgages contain a contractual term stating you can end early and the courts will say you exercised that right rather than breaching the express term of the contract even if you were unable to continue paying the mortgage. Without a breach of contract they are allowed to charge what they like. The courts are unwilling to look into the fairness of contractual terms which allow them to sidestep the law on penalties.

 

All the best

 

Zoot