Repayment Mortgage Decision Reference 2022-0177

• Case Outcome: Partially upheld
• Subject Matter: Repayment Mortgage
• Reference: 2022-0177
• Date: 27 May 2022
• Finantial Sector: Banking
• Conducts Complained Of: Failure to process instructions

Decision Ref:

2022-0177

Sector:

Banking

Product / Service:

Repayment Mortgage

Conduct(s) complained of:

Failure to process instructions

Outcome:

Partially upheld

LEGALLY BINDING DECISION

OF THE FINANCIAL SERVICES AND PENSIONS OMBUDSMAN

This complaint arises from the Complainants’ allegation that the Provider misapplied their

funds, and failed to follow their instruction to reduce the term of their mortgage loan.

The Complainants’ Case

The Complainants hold a joint mortgage account with the Provider.

The Complainants submit that on 10 January 2007 the first Complainant attended at the

Provider’s branch and lodged €10,000 (ten thousand Euro) into the mortgage account. The

first Complainant states that he did not want this sum to reduce the balance of his mortgage,

and instead he requested for the term of his mortgage to be reduced.

The first Complainant submits that he discussed this instruction in the Provider’s branch.

Following this, he held the understanding that his mortgage would be reduced by a term of

two years.

In 2018, the Complainants enquired with the Provider as to the remining term on their

mortgage and learned that the term had not been reduced in 2007. Instead, the €10,000

(ten thousand Euro) had reduced their capital balance on the mortgage, and their monthly

repayments had consequently decreased.