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Does overcharging on mortgage interest rates by a bank warrant a breach of contract

  • 28-01-2015 4:34pm
    #1
    Piggybank
    Registered Users, Registered Users 2 Posts: 2 ✭


    I was wondering that if you can prove that a bank changed your mortgage interest rates to a higher mortgage rate than what you were contracted into, can you seek damages against the bank for breach of contract ?


Comments

  • #2
    ytpe2r5bxkn0c1
    Closed Accounts Posts: 32,688 ✭✭✭✭ytpe2r5bxkn0c1


    You might need to be more specific as interest rates change quite often. What do the T&C on the mortgage say about interest rate changes?


  • #3
    Piggybank
    Registered Users, Registered Users 2 Posts: 2 ✭Piggybank


    I believe Danske bank changed my mortgage interest in february 2009 from a home loan rate to an investor rate. There was a subsequent increase of .75% in the interest rate charged to my account, that was not charged to anyone with the home loan rate. When I took out my mortgage the Loan Agreement says the interest I pay is the Home loan rate.


  • #4
    dudara
    Registered Users, Registered Users 2 Posts: 33,518 ✭✭✭✭dudara


    Moved to Banking & Insurance & Pensions

    dudara


  • #5
    Toots
    Administrators, Business & Finance Moderators, Society & Culture Moderators Posts: 16,957 Admin ✭✭✭✭✭Toots


    Were you still living in the property or was it rented out?


  • #6
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,611 Mod ✭✭✭✭Jim2007


    Piggybank wrote: »
    I believe Danske bank changed my mortgage interest in february 2009 from a home loan rate to an investor rate. There was a subsequent increase of .75% in the interest rate charged to my account, that was not charged to anyone with the home loan rate. When I took out my mortgage the Loan Agreement says the interest I pay is the Home loan rate.

    Have you contacted the bank, pointed out their error and what was their response? If you look at most bank statements and fee notes you will usually find the letters E&OE some where this is an indication by them that there may be mistakes and a warning to you that you should check your statements and bring any errors you find to their attention.


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  • #7
    Quorom
    Registered Users, Registered Users 2 Posts: 28 ✭Quorom


    This very matter was adjudicated upon by the Financial Services Ombudsman on a number of occasions in favour of the borrower. The complainant got the overcharge back and some small compensation. However, in my opinion, by Danske bank altering the variable home loan rate in the loan agreement that you contracted into, to the new variable investor rate, as they did in February 2009, Danske bank fundamentally altered the terms and conditions of the loan agreement without your permission and can thus be sued for breach of contract


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