We recently wrote to some customers about their mortgage account, as we made a decision to no longer charge interest on legal or third party costs associated with the legal process to customers’ mortgage accounts. As these costs formed part of the customers’ mortgage balances, we are now giving customers back the interest charged on these costs. If you received this letter the following Q&A may help to answer some of your questions.
Why am I getting a letter?
We are writing to you because we charged you interest on legal costs and/or third party costs associated with the legal process that formed part of your mortgage balance. We are giving you a payment for the interest we charged on these costs.
Who does this affect?
This affects some customers who were charged interest on legal costs and/or third party costs associated with the legal process when we were trying to recover money owed on their mortgage account.
What are these costs?
Legal costs are expenses incurred by us when we start any legal action in order to recover money owed on a mortgage account. We only do this when we have tried all other options available to us. Legal costs also include third party costs that were incurred because your mortgage account was in the legal process, such as solicitor fees.
Why were legal and/or third party costs applied to my account?
We applied these costs to your mortgage account as we incurred costs and expenses when we were trying to recover money owed on your mortgage account. In line with the terms and conditions of your mortgage, all such costs and expenses are payable by you. We only start legal proceedings to recover money owed on your mortgage account when we have tried all other options available to us.
Why are you giving me back the interest charged on the legal and/or third party costs associated with the legal process?
While the terms and conditions relating to your mortgage account allow us to charge you interest on unpaid legal and/or third party costs, we have decided to change this practice and stop charging you interest on these costs and repay interest we have already charged on these costs.
Why are you giving me back the interest on these legal and/or third party costs until 31 December 2020?
We have calculated forward the amount of interest you would pay on these costs from now until 31 December 2020, by which time interest will no longer be charged on these costs.
How will I see the payment on my account?
The payment will appear on your annual statement as ‘Capital Adjustment’.
I am not sure I can afford my mortgage repayments. What should I do?
If you are worried about your mortgage repayments, the first step is to talk to us. Together we can work through what is happening and look at possible ways to help you. You can get in touch with us using the contact details contained in your letter. Alternatively, if you prefer, you can visit our website at www.ebs.ie/worried-about-payments.
Who can I speak to if I have a question or wish to make a complaint?
If you have a question or wish to make a complaint, please ring us on 01 7714487 or write to us using the details contained in your letter.