Bank of Ireland is to pay back close to €1m to 1,514 credit card customers who were mis-sold payment protection insurance products by the bank.
Last night, Bank of Ireland Insurance Services confirmed it is to make the refunds to customers “who self-selected PPI cover when applying for a credit card [but] were not working at the time and ineligible for cover”.
The mis-selling of PPI products is the subject of an investigation across the sector by the Central Bank’s director of consumer protection, Bernard Sheridan.
Bank of Ireland said its internal review, which uncovered the issue, was conducted in parallel with the Central Bank’s PPI review.
“It is our policy to constantly check and to issue refunds with fair value interest and we continue to do so when appropriate,” the bank said.
Bank of Ireland said it has fully co-operated with the Central Bank in respect of its themed inspection of PPI, which is ongoing, and awaits the publication of their findings.
The refunds by Bank of Ireland come one month after AIB refunded €3.1 million in payment protection insurance premiums to 11,500 customers — an average of €270 each — after the bank uncovered a “breakdown in its verification systems”.
It is expected that thousands of customers that were mis-sold payment protection insurance will win millions of euro in compensation as a result of a Central Bank investigation which has found the problem was systemic.
The Central Bank investigation concentrates on the mis-selling of payment protection insurance to the self-employed, those close to retirement, and those on contract — the bulk of whom were ineligible to be insured under such policies.
The Central Bank told the Irish Examiner in March: “We intend to complete this assessment in the first half of 2012 to determine if regulatory action is necessary and will follow up with each firm directly. A summary of the main findings will also be published.”
British banks have set aside over £5.5bn (€6.6bn) to compensate British customers who were wrongly sold payment protection insurance.
In Britain, it was found that the vast majority of PPI policies were mis-sold.
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