AIB missed a major goodwill opportunity to restore trust by writing down huge chunks of mortgage debt for almost 6,000 customers, but not telling them it was doing so. That is according to financial advisor and consumer advocate Padraic Kissane, who said AIB had created even more confusion for 5,900 customers who suddenly found up to tens of thousands of euro wiped off their mortgage balance on Wednesday.
AIB announced in April an extra cohort of 5,900 tracker mortgage holders were to receive redress and compensation, after a ruling from the Financial Services and Pensions Ombudsman (FSPO) that they should have had the option to switch to a prevailing tracker rate after the end of their fixed rates.
The bank had said publicly in April the affected customers would be informed by letter in July and August as to what was to happen to their mortgage accounts.
However, most if not all customers did not receive any letters before yesterday, meaning calls to the bank’s helplines to ask just what was going on.
Mr Kissane, one of the major whistleblowers of the €1bn-plus tracker mortgage scandal, told the Irish Examiner that it was hard to fathom how AIB managed to create a farcical situation out of what should have been good news for 5,900 customers.
The Dublin-based Kerry native – credited for being one of the major advocates for blowing the lid off the original €1bn-plus tracker mortgage scandal when 40,000 customers of pillar banks and other lender were wrongly put on more expensive loans – said: “The bank adjusted the balances of 5,900 customers without actually telling anyone.
