Pearse Doherty TD welcomes AIB climbdown on extortionate breakage fees
Sinn Féin Finance Spokesperson Pearse Doherty TD has welcomed AIB’s climbdown on how it calculated breakage fees for mortgage holders trying to break out of higher fixed rebates. Speaking today, Deputy Doherty urged customers who had been charged extortionate breakage fees to seek refunds by complaining to the Financial Services Ombudsman.
The Donegal TD said:
“I welcome the decision by AIB to change how it calculates breakage fees for customers who want to end fixed term rates on their mortgages. Despite what they claim, it is clear AIB were purposely misinterpreting the Mortgage Credit Directive in order to charge extortionate breakage fees that were often several times higher than they should have been.
“The Directive meant banks could only charge a fee based on earnings made had the mortgage been kept on deposit. AIB misinterpreted this to charge higher fees.
“For the past number of years I have brought this issue to the attention of the Minister for Finance and the Central Bank. While the Government have repeatedly stood in defence of AIB, I welcome their revised approach to this issue.
“However, it is clear that many customers have been ripped off in the last number of years as a result of AIB’s practices, and I would urge them to seek full redress by complaining to the Financial Services Ombudsman.”