AIB faced fine of only two days’ profit

AIB could only have been fined a maximum of two days’ profits for its customer charging failures, even if current legislation to penalise banks for overcharging had been in place at the time.

The regulatory body responsible for monitoring AIB’s customer charges knew as far back as 1998 that its staff did not have the expertise required to adequately police the banks.

New legislation that came into effect in August provides for fines of up to €5 million for companies found guilty of breaches of the 1995 Consumer Credit Act and other laws governing financial institutions. AIB reported pre-tax profits of over €1 billion last year.