AIB to refund customers €3.1m

AIB will have to repay €3.1m to some 11,500 customers after overcharging them for a payment protection plan.

It follows an internal review at the now state-owned bank into the way it sold payment protection plans.

Affected customers will be refunded an average of €270 each after mistakes were found in the way AIB sold payment protection on credit cards, loans and travel insurance.

The bank has insisted that it did not missell the product, but rather made errors in setting up the policies and administering them.

It follows a fine of €2m in 2010 for failing to deal fairly with customers who were charged too much.

The Central Bank has been informed and AIB will be writing to the affected customers in the coming weeks