Changes effective August 1st, 2016
Changes to Tax Relief at Source (TRS)
Q: Has there been a change to the way TRS has been applied to my account?
A: Yes. Up until August 2016 TRS has been applied in what is known as the ‘net payment approach’. This means that if, for example, your monthly repayment was €500 and you were entitled to a TRS credit of €50, €450 would be debited from your current account to meet your scheduled mortgage repayment. From August 2016 this has changed. In the above example, your current account will now be credited with the applicable TRS credit of €50 the day before your scheduled repayment date. On your scheduled repayment date €500 will be debited from your current account. The net amount you actually pay will remain unchanged. This change will only impact customers who pay by direct debit.
Current Account Changes
Q: Has there been a change to the way normal and surcharge interest has been applied to my current account?
A: Yes. Interest and surcharge interest on current accounts is calculated quarterly, on the 31st March, 30th June, 30th September and 31st December. This has not changed. However from 30th September 2016 this interest and surcharge interest, if applicable, will be applied to your account on the 30th September, 31st March, 30th June, 30th September and 31st December. Prior to this, the interest was applied to your account 21 days following the end of the quarter i.e. 21st April in respect of the period ended 31 March. We will continue to provide ten days advance notice of the expected normal and surcharge interest to be applied to your account.
The application of unpaid payments
Q: Has there been a change to the way an unpaid payment is applied to my account?
A: Yes. Up until August 2016, if a direct debit or cheque payment to your loan or other account is unpaid by your bank, your loan or account will be debited on the date that we are notified that the direct debit or cheque was not paid. For example, previously if your direct debit was presented on the 1st of October and subsequently returned unpaid on the 4th of October then we would debit your loan or account on the 4th of October. From August 2016, in the above example, your loan or account will be debited on the 1st of October.
Effective Arrears Date
Q: Is there a change to the date stated in correspondence advising when an account first went into arrears (should this arise)?
A: Prior to August 2016, if a borrower failed to make a scheduled repayment in a given month, let’s say January, for example, they would have received a communication advising them that their account was in arrears from the scheduled date of their January payment. If, in February, the borrower made their scheduled repayment, that payment would have been used to clear the arrears from January. This would then have resulted in the account being in arrears for February and they would have been issued a communication advising them that their account was in arrears from the date of their scheduled February payment. From August 2016, in the above scenario, the February payment will not result in a change to the date that the account first went into arrears. As a result, from August any arrears correspondence will state the date that the account first went into arrears (which would be January in the above example). This date will not change until the arrears are cleared in full.
Q: Is there a change to when I will receive my statements?
A: Yes, during August 2016 customers will receive a statement. For loan accounts that statement will be for the period 1 January 2016 to 31 July 2016 and for current accounts it will cover the period from last statement date to 31 July 2016. Capita will be issuing a statement in January 2017 covering the period August 1st to December 31st 2016. Thereafter statements will issue to you on an annual basis in the following January. The decision to issue statements in this manner is purely for operational purposes and has no impact on the ongoing operation of your account. Should you require more frequent statements for your account, please contact your case manager.
Certificates of Interest
Q: Is there a change to the availability of Certificates of Interest?
A: Certificates of Interest will still be available to issue to you should you request one. If requested, a certificate of interest for the year 2016 will be issued in two parts, one part for the period 1 January 2016 to 31 July 2016 and the second part for the period August 1st to December 31st 2016.