Storm over bank's 'dirty tricks' on tracker loans - Independent.ie
BOI instructed RedC to do some research into the tracker mortages held by their customers, essentially looking for their level of understanding of and attachment to their tracker mortgage. BOI's got about 80k of these and they are quite frankly a milestone around their neck (As they would be for any bank anywhere). Of course it's BOI's own fault, they offered the product, people took up the product and now they have to provide the product. Tough quite frankly.
On the flip side, I've no issue with what BOI state as their aim:
Which is fair. If they're upfront and honest and say "You've a 300k mortgage, we'll give you a 20k lump sum if you move to a mortgage that will cost you 30k extra in the long term" then again, they're offering a product that people will take up. The problem they have though is that according to their own research, 85% of people on the Luas during that ad DO know what a tracker mortgage is and aren't likely to move from it.The objective of the research is to produce findings that would "encourage tracker mortgage holders to move off their product".
This would "ultimately improve the overall profitability of the Bank of Ireland mortgage book", the study states.
Labour have blown their stack (Because if there's anyone that needs to be desperately populist right now, it's Labour):
Which isn't true, some people may well like a lump sum rather than a larger saving over time. But my favourite bit is the BOI excuse which is utter utter bollox.Labour TD Kevin Humphreys said he was concerned that the bank was engaged in "dirty tricks". He had requested the research from the bank after Mr Boucher referred to it when he appeared before the Oireachtas Finance Committee last November.
Mr Humphreys said the research showed the bank was only interested in its own profitability and was not acting in the best interests of its customers
Pull the other one dear. I hope she said it deadpan, that's a line straight out of "Thank you for smoking".A spokeswoman for the bank admitted the document used blunt language and showed the bank up in a bad light. But she insisted this was because the research was only for internal use.
There was no attempt to trick people out of their good-value trackers, the bank said. Bank of Ireland was merely trying to find ways to ensure that having a tracker would not be an impediment for those who wanted to move house.
I can see banks offering deals to get people out of their trackers. I can also see compensation for misselling of those deals in years to come.