Ulster Bank overcharged me by over 32,000euro in one mortgage.....

virgo65

Hi there,

I'm hoping to get some opinions on the issue that I was overcharged by over 32,000euro on an offset flexible mortgage. This was one of 3 mortgages I had with Ulster Bank, the other two were trackers, both have since been sold off to Promontorio Oyster. I am assuming both have severe overcharges on them and therefore Promontorio had incorrect figures to begin with.

The overcharging began in 2010 when I started accumulating arrears in my mortgages, so unknowingly I was paying interest on interest, a process termed "Automatic Arrears Capitalisation" here is a snapshot of some of the correspondence from UB

I am hoping to challenge the bank to get compensation for the stress and anxiety that it has put me through for the past decade. BTW I always kept the lines of communications open to them ....all advice would be greatly appreciated.

Q&A

Have they admitted to overcharging? Have they refunded the overcharged amount?

When you say the lines of communication remained open were you informed by the bank that you were in arrears? What action did you then take?

First establish the facts of how different events impacted you.

Based on the revised estimate would you have been able to pay off the arrears amount before your loans were sold?

If you can prove you could have kept the loan preforming under the more favourable terms you could argue you your loan would not have been sold and as such you could be entitled to the benefits (if any) of a scenario where you remained a UB customer. This video's include having your mortgage restored.

Jim2007

Claims for compensation for the stress and anxiety are very difficult to comment on because it comes down to the opinion of the courts. A figure of 32k with no context is meaningless. It may or may not be a significant figure in your claim. Talk to a solicitor.

silver2020

So all three were in arrears.

The arrears were not caused by the bank's error.

Did the bank actually overcharge by €32,000 and has your balance reduced by this amount or are they saying that the repayment under restructuring could have been lower and this wasn't offered.

You will find it very difficult to win a case.

What's the issue with the tracker mortgage?

virgo65

Thanks for all the advice given above, I have spent the weekend mulling over it and have decided to speak to a solicitor on the matter in the new year Stay safe

rameire

I think this issue was only in relation to those Offset mortgages and the way the repayments were calculated.

It did not affect any other mortgage on their systems.

what occurred was your repayments were calculated using your full mortgage balance, what should have occurred was the repayments should have been calculated with your mortgage balance minus your arrears balance.

thus every month your mortgage repayment would have been lower than stated.

so if you had an unpaid monthly repayment your arrears balance grew more than it should have.

this calculation would not have calculated interest on interest, your mortgage balance did not grow because of this, only the arrears balance grew.

Their adjustment has reduced the arrears balance not the mortgage balance.