Brendan Burgess
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Disclosed in today's half-year results
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AIB revealed on Friday in its first-half report that it has taken a €61 million to cover personal and small business customer refunds and costs to itself after finding an issue in loan documents.
The 71 per cent State-owned bank sent a notification to tens of thousands of personal customers in recent weeks saying it had made a mistake in loan documents where borrowers topped up existing loans through AIB branches.
The bank incorrectly excluded interest outstanding on initial loans when drawing up new agreements to cover the top-up amount, but continued to charge the amount.
“While the customer did owe this amount from the previous loan, as it was incorrectly omitted from the credit agreement, this amount, and associated interest, does not have to be repaid,” it told customers in a letter that has also been posted on its website.
AIB to refund €61m to personal and business borrowers
Group’s pretax profit down to €436 million, 43 per cent down on same period last year
AIB revealed on Friday in its first-half report that it has taken a €61 million to cover personal and small business customer refunds and costs to itself after finding an issue in loan documents.
The 71 per cent State-owned bank sent a notification to tens of thousands of personal customers in recent weeks saying it had made a mistake in loan documents where borrowers topped up existing loans through AIB branches.
The bank incorrectly excluded interest outstanding on initial loans when drawing up new agreements to cover the top-up amount, but continued to charge the amount.
“While the customer did owe this amount from the previous loan, as it was incorrectly omitted from the credit agreement, this amount, and associated interest, does not have to be repaid,” it told customers in a letter that has also been posted on its website.
