More than 13,000 Bank of Ireland customers with a tracker mortgage will today find they’re paying a higher interest rate due to a loop-hole in the bank’s terms and conditions.
Some customers who were sold a ‘lifetime’ tracker could also be among the affected, despite a static base rate of 0.5% from the Bank of England.
Which? believes it’s unfair for the bank to hike its rates using clauses buried in the small print.
If you’re an affected Bank of Ireland customer, we’re advising you complain using our free online complaint tool.
Which? executive director Richard Lloyd said: ‘Burying such important changes in the small print is wholly unfair. Bank of Ireland is taking advantage of its customers by hiking rates at a time when the basic rate is static.
‘Customers should complain if they were led to believe they had bought a ‘lifetime’ mortgage and Bank of Ireland must deal with these complaints quickly and fairly. ’
BOI rate increase unfair
The Bank of Ireland has raised the repayment rate on many of its tracker mortgages taken out before October 2004.
Reports from Which? members suggest this represents an interest rate rise of up to 3.99% in some cases. Which? has received, and continues to receive, numerous complaints on the issue.
We’re sending a clear message to the Bank of Ireland criticising its decision to increase its rates.
We believe the forthcoming Consumer Rights Bill should include provisions to offer consumers greater protection from unfair terms and conditions.
Richard Lloyd added: ‘The Financial Conduct Authority must make sure all banks communicate important clauses to mortgage customers, and the government must ensure that the Consumer Rights Bill offers greater protection from unfair terms and conditions.’
BOI rate complaints
Have you been affected by the Bank of Ireland’s decision to increase the repayment rate on its tracker mortgages?
Our free online tool allows you to complain directly to the Bank of Ireland if you were led to believe that your differential would apply for the life of your mortgage.
Simply fill in your details to send a complaint directly to the customer complaints team.
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