Repayment Mortgage Decision Reference 2024-0147

• Case Outcome: Partially upheld
• Year: 2024
• Date: 27 June 2024
• Reference: 2024-0147
• Finantial Sector: Banking
• Conducts Complained Of: Settlement amount (mortgage),Delayed or inadequate communication

Decision Ref:

2024-0147

Sector:

Banking

Product / Service:

Repayment Mortgage

Conduct(s) complained of:

Settlement amount (mortgage)

Delayed or inadequate communication

Outcome:

Partially Upheld

LEGALLY BINDING DECISION OF THE FINANCIAL SERVICES AND PENSIONS OMBUDSMAN

This complaint relates to a mortgage loan account (the “Loan”).

The Complainants’ Case

The Complainants submit that on 6 July 2022 they “made an offer" to the Provider to

settle the Loan “in full and final settlement” and that their settlement cheque for

€75,000.00 (seventy five thousand euro) “was cashed” by the Provider on 8 July 2022.

The Complainants further submit that on 25 July 2022 they received a letter from the

Provider “stating what our new repayment amount would be having deducted the

payment” and which said that this was “as requested” in the Complainants’ letter. The

Complainants contend that “it was never mentioned in [the Complainants’] letter that we

would like to reduce our repayment by providing a lump sum.” The Complainants further

contend that it “was clearly stated that this was an offer in full and final settlement.”

The Complainants submit that they subsequently contacted the Provider by telephone and

were informed that “they would call me back.” The Complainants assert that the Provider

did not call them back and, on the 4 August 2022, they received a letter from the Provider

stating that “an increase had occurred in the repayment rate.” The Complainants submit

that this “alerted [them] to the fact that this department did not know of the contracted

pay off of [their] mortgage” and that they subsequently emailed the Provider “to explain.”

The Complainants submit that they received a letter from the Provider on 17 August 2022

stating that the Provider “would not accept my payment in full and final settlement of the