Saturday 23 November 2019

AIB will nominate new Credit Bureau director

Donal O'Donovan

Donal O'Donovan

AIB is to nominate a new director to the board of the Irish Credit Bureau, the agency that banks and other lenders rely on to decide whether or not to loan money to consumers.

Papers filed with the Companies Office revealed AIB's previous nominee, Robin Bradley, resigned as a director of the Irish Credit Bureau on May 17 this year.

The new appointee will come in at a time of heightened tensions as AIB remains under pressure to reassure the public and regulators that it has addressed filings that led the bank to supply more than 12,000 false credit histories to the bureau over six years. It's understood the error was caused by incorrectly collected computer data.

The Data Protection Commissioner has launched an investigation into the way banks provide information to the bureau as a result of the case.

Sensitive data about missed loan payments, held by the bureau, is used by lenders to decide whether or not to lend to customers. Incorrect data can lead to a lender to rejecting an application.

The Irish Credit Bureau is owned by its members, including AIB and Bank of Ireland.

It's understood Mr Bradley's departure from the bureau's board isn't linked to the data error, but was prompted by a change in his main role within AIB.

The errors at the centre of the controversy happened when customers whose loan repayments were made weekly or fortnightly missed a payment.

AIB reported the resulting customer arrears as being months behind instead of weeks.

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