It has recently been reported in the media that Ulster Bank will be refunding approximately €36 million to almost 18,000 business accounts who were affected by overcharging as far back as 2012. On average, each customer who will be refunded will receive approximately €2,000.
As well as Ulster Bank, all other Irish banks were instructed to examine their business structures as part of the Central Bank’s tracker mortgage scandal investigation.
This overcharging by Ulster Bank was as a result of them changing their definition of its ‘cost of funds’ in 2012, which determined how their interest rates were calculated. However, the problem arose when it was determined that Ulster Bank’s loan documentation for these accounts did not allow for changing the definition of cost of funds. Subsequently, this resulted in overcharging.
If you are an Ulster Bank Customer affected by this then you should be receiving correspondence from them within the following few weeks. You will be entitled to both a refund and compensation which Ulster Bank aims to have the majority of this paid out by the end of the year.
The good news is that if your Ulster Bank business loan has already been sold on to a Private Equity Firm you will still be entitled to a refund. Therefore, it is imperative that you check your original loan paperwork to ensure that you get what you deserve.
We, at GDP Equity Experts, envisage that as a result of the Central Bank’s tracker mortgage scandal investigation, a large volume of customer refunds from all leading Irish banks will follow. Therefore, it is very important that you have a full understanding of what level of refund you may be entitled to.
What should I do?
It is imperative that you check your original loan paperwork to determine and understand all agreements that you have had with your bank. By having a clear understanding of this paperwork, this will help you determine if you have been overcharged in anyway. However, we do understand that this can be a meticulous task which may be time consuming. Therefore, it is very important to take advice in this regard from a regulated team of debt advisors who can assist you.
How can we help?
We are fully regulated by the FCA and since 2010, we have helped hundreds of families and property investors deal with property debt related issues. We have an incredible team who are here to help you today with any of the issues that might concern you with regards to this topic and any other matters related to your debt position.
If you have any queries in relation to anything in this piece or need some additional questions answered, our office would love to hear from you today.
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