Business

Friday 23 August 2019

AIB to repay €61m of interest to customers due to loan mistakes

AIB chief executive Colin Hunt. Photo: Collins
AIB chief executive Colin Hunt. Photo: Collins
Donal O'Donovan

Donal O'Donovan

AIB is to repay €61m of interest to customers who topped up personal and small business loans between 1999 and 2019.

The bank said customers affected were not overcharged, but that the bank’s paperwork should have been clearer in setting out interest terms.

The bank has begun contacting customers. All personal loan customers are expected to be written to in July and small businesses will be contacted in September.

AIB chief executive Colin Hunt said the issue had been “self identified” by the bank and customers were not overcharged.

“The money was owed to us on the facilities,” he said.

However, because the standard of documentation was not at the level it should have been the bank had decided to return the money involved to customers.

The Central Bank had been informed, he said.

The issue is not directly linked to the tracker mortgages issue, but the quality of information provided by banks to customers – including in the past – has come under scrutiny as a result of that €1bn scandal.

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