KBC Bank avoids sanction over interest rate mix-up

KBC Bank Ireland will not be sanctioned by the Central Bank for erroneously printing an incorrect interest rate on customer statements.

It was reported yesterday that the wrong rate was printed on statements received by 7,000 of the bank’s customers.

An internal review, conducted in April, found that while the correct interest rate was being applied to accounts, 7,000 customer statements showed an incorrect rate printed, suggesting 1% more was being paid.

The bank said the error was immediately rectified and new statements were issued to relevant customers.

“While the correct interest rate was applied to the account and outlined in the statement, an incorrect rate was printed on the reverse of the statement... No customer was adversely impacted or lost out financially in any way,” a KBC spokesperson said yesterday, also noting that as required the Central Bank had been notified and the matter has since closed.

A spokesperson for the Central Bank yesterday confirmed that it had been informed by KBC of the error — “in relation to an incorrect interest rate summary table being included in statements for some KBC Regular Saver customers”.

“Where errors are identified, the Consumer Protection Code 2012 requires errors to be resolved speedily.

"The Central Bank engaged with KBC in relation to this matter and notes that KBC has issued corrected statements to all impacted customers,” they said.

They also said that the bank would face no sanctions as the issue had been brought to the regulator’s attention, and had been fully rectified, within 40 days of having been identified.

KBC Ireland last month cut its top deposit rate — on deposits of €100,000 or more — from 1.05% to 0.7%.


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