AIB take blame for tracker mortgage error

AIB has now taken the blame for the manual error to 500 discount tracker mortgage accounts, which were not increased after an ECB interest rate rise between the date March 2006 and March 2007.

The Allied Irish Bank has said that the account holders continued to pay their monthly repayments, but at the lower rate, when their payments should have been adjusted so that they would pay more each month.

This now means that the balances on these 500 discount tracker mortgage accounts are higher than they should be, had the customers been paying the rate if the rate had been corrected.

As a result AIB has written to those customers who are affected and has apologised to them, they have also asked how they would like to make up the shortfall.

AIB have given them the choice of making one single payment by July 31, rather than putting the difference on the remainder on the loan.

Source