AIB’s redress bill likely to be small

AIB yesterday launched a redress scheme for 110,000 credit card customers who paid for insurance they didn’t need.

However, it is likely the Government-owned bank will pay less than half of the estimated bill of up to €7m owing to affected users.

The Central Bank said it had been working with AIB for the lender to pay back insurance to credit card customers who had bought credit card protection insurance from Pinnacle Insurance because the card holders were already covered for parts of any losses.