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AIB must pay out compensation to over 1,000 customers ‘as soon as possible’ says Central Bank Governor

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Gabriel Makhlouf

Gabriel Makhlouf

Gabriel Makhlouf

The Governor of the Central Bank Gabriel Makhlouf has said that compensation must be paid out by AIB to 1,100 overcharged customers “as soon as possible”.

The governor was speaking on the RTÉ Radio One This Week programme this afternoon following a story in yesterday’s Irish Independent that AIB had applied the wrong rate for more than 1,000 of its customers, who will now be compensated.

People who took out trackers at EBS and Haven were charged the wrong margin over the European Central Bank (ECB) rate.

It is believed that the refunds will average €6,000 per affected customer and the overcharging goes back to 2006.

“As soon as possible [is when] we want to see this compensation paid out,” said Mr Makhlouf.

He said that this was a “challenging and complex” investigation.

“This has been one of the most challenging and complex investigations which the Central Bank has been involved in.

“When we concluded our inquiries last year, we made clear that in some respects, they hadn’t finished. We are making sure that the banks do meet the responsibilities, there are some ongoing inquiries and the sooner, the better, is the answer,” he explained.

Following Tánaiste Leo Varadkar’s comments yesterday that he did not trust the banks, the Governor added that lessons “of the past” have been learned.

“From my perspective and from the perspective of the regulatory system throughout Europe, we’ve learned the lessons of the past and we’re in a much stronger position to make sure that they are implemented for the future,” he said.

Online Editors