The Financial Ombudsman Service has received more than 300 complaints about the Bank of Ireland’s tracker mortgage rate increase.
On 1 May, the bank increased its tracker mortgage rate for 13,500 borrowers. The rate rose from Bank of England base rate plus 1.75 per cent to base rate plus 4.49 per cent for buy-to-let deals and base plus 2.49 per cent for residential.
From 1 October, it will rise again for residential borrowers to base plus 3.99 per cent. The bank blames the rise on higher capital requirements.
Following borrower anger, the bank reversed its hike for 1,000 flexible account customers and 200 more who had switched to a tracker mortgage.
More than 300 borrowers are now planning a class action against the bank, claiming the increase is based on an unfair contract term.
The FCA is considering a request to take on the case and consumers have been encouraged to complain to the FOS by the Financial Services Consumer Panel and Which?.
Speaking to Money Marketing, FOS chief executive Natalie Ceeney says: “We’ve had around 300 complaints. We have our best ombudsman on it and are working hard to find out what the answer is as we’re still at the inquiry stage.
“We need to give Bank of Ireland time to answer questions and consumers time to answer questions. We have requested an awful lot of information from both parties and still waiting for some information before reaching some conclusions.”