AIB pays out €3.7m following overdraft error

AIB is to refund more than 6,000 customers a combined €3.7m after a review of its overdraft products found that it had incorrectly charged account holders.

The review found that the bank had overcharged 6,855 customers after it failed to inform them that their overdrafts had expired.

As a result, the customers incorrectly incurred fees and charges which has led to its announcement yesterday of the refund scheme.

A spokesperson for AIB said the average refund is about €543 including compensatory interest. Refunds were paid on September 25.

“Following a recent review by AIB of its overdraft product, it was highlighted that a number of issues may have resulted in an unintended error in the amount of surcharge interest and/or fees being charged to the accounts,” an AIB statement read.

The bank apologised for the error and any inconvenience it caused, adding that the appropriate changes to procedures had been implemented.

In a statement, the Central Bank said that it was aware of the issue and encouraged customers to contact the bank with any queries they may have.

“The Central Bank of Ireland is aware of the issue with an AIB overdraft product,” the statement read.

“The Consumer Protection Code 2012 requires error to be resolved speedily and for customers to be notified and refunded appropriately. Customers should contact AIB directly if they have any queries.”


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