AIB wishes to advise of a process error that we have rectified for identified impacted customers who applied to top-up their personal loan over either telephone or Internet Banking.

 

For customers who had successfully applied to top-up their loan, we made additional funds available, where we credited accrued interest owed from the previous loan to the customer’s loan account. While the customer did receive this amount as new money, it was an error. As this was a mistake, any interest charged in relation to this will be repaid. The average interest to be repaid in relation to each top-up is €25.

 

AIB is also reducing customer loan balances relating to interest amounts for previous loan top-ups as a result of this matter. The average loan balance reduction per top-up is €75. Where accounts are closed, these amounts will be repaid to relevant customers.  

 

AIB apologises for this process error and any inconvenience it may have caused to our customers.  We will be writing to all impacted customers, and customers who are due a refund do not need to take any action. All account corrections and refunds will be complete by early August.

 

If any customer feels this error adversely impacted on credit decisions by AIB or other financial institutions, we will work with those customers to address the matter.

 

If customers wish to talk to us about this matter we have a dedicated number: 0818 300 072 (9am to 5pm Monday to Friday).

 

 

Frequently Asked Questions (FAQs)

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Top-up

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    What happened?

    When a loan is topped up, we calculate the new loan amount taking into account the old loan balance, the interest owing on that balance and the amount of new money requested. You should just receive the new money requested.

     

    However, a process error meant that when you topped up, we transferred an amount equal to the interest owing from your old loan, as well as the new loan requested to you. Interest was subsequently charged to the new loan and as a result the amount owed became higher than it should have been.

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    What is a Top-up?

    A Top-up is when you ask to borrow more money on your existing loan account and we agree to it. This new amount is added to the balance on your existing loan account. Alternatively a Top-up may have happened where your loan was restructured or re-contracted with us.

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    Why am I getting this letter?

    We're writing to you because we discovered a mistake on your loan account. We wanted to let you know that we have fixed it and have corrected your account.

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    How was the redress amount determined?

    This depends on the current status of your loan account.

     

    (1) If the impacted loan account is still open and you completed one top-up, to correct this we have reduced the amount owed on your loan account by the amount outlined in your letter. This amount is in relation to the interest amount owed from your previous loan. This will bring your loan balance back to what it should be, had the error not occurred. You will see this transaction on your account as ‘Interest Adjust’.

     

    (2) If the impacted loan account is still open and you completed more than one top-up, to correct this, we have reduced the amount owed on your loan by the amount outlined in your letter. You will see this as a transaction on your account called ‘Interest Adjust’. This amount is made up of:

     

    • A portion (the exact amount is quoted in your letter) relates to the interest amounts owed from previous loan top-ups. We have reduced your loan balance by this amount and you cannot access these funds. This is to bring your balance back to what it should be at, had the mistake not occurred.

    • The remaining amount is a refund of interest charged as a result of a higher balance on your account. You can withdraw this amount from your account in your local branch if you are up to date with your repayments.

     

    (3) If the impacted loan account is closed to correct this we are refunding you the amount quoted in your letter. This is a refund as you already paid back an amount higher than you should have.

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    Has the issue been resolved?

    Yes, we have corrected the necessary processes and systems to make sure it will not happen again.

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    Has the Central Bank been informed of this issue?

    Yes, we have told our Regulator, the Central Bank of Ireland. We told them as soon as we discovered the problem in early February and we have kept them up to date about everything we are doing to put this right for our customers.

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    Do I need to do anything?

    No you don’t need to do anything. We are confident that we have resolved the mistake for you.

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Irish Credit Bureau (ICB) and Central Credit Register (CCR)

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    If my letter mentions that my ICB/CCR record was impacted, do I have to do anything?

    The majority of customers have not had their ICB/CCR record impacted. Your letter will clearly state this if you are impacted.

     

    Where possible, we have corrected your record with the ICB and/or CCR and this is explained in your letter. However, if you think our mistake may have caused other lenders to refuse you credit, please let us know by calling 0818 300 072 and we will look into it for you. You will need to provide us with written confirmation from the lender that refused you credit as a result of ICB, if you were refused by AIB you will not need to provide this and we will investigate immediately.

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    How can I get a copy of my ICB Record?

    Your credit report can be requested by going online at www.icb.ie or alternatively you can phone (01) 260 0388 and request a copy be posted to you. There is no charge for this report (subject to fair usage).

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    How can I get a copy of my CCR Credit Report?

    Your report can be requested by going online at www.centralcreditregister.ie or alternatively you can phone 1890 100 050. You can request your credit report at any time free of charge (subject to fair usage).

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