Customer Notice on Personal Loans
We want to let you know about a recently corrected mistake we made when certain personal and business customers restructured their loan in the past.
For these customers we made a mistake on the customer credit agreement. We did not include interest that was outstanding on the old loan in the new credit agreement. In some cases, we placed some customers into an overdrawn position. This resulted in additional interest being charged.
Any customer who was affected by this error will receive a refund. Customers who have an open AIB account will receive their refund as a lodgement to that account. This will appear in customers’ statements with the reference ‘AIB refund (276)’. All other customers will receive a cheque.
We will be writing to all to customers affected by this issue, so customers do not need to take any action. All corrections will be complete by the end of May.
We are sorry about this error and for any inconvenience it may have caused to our customers.
If any customer feels this error affected credit decisions by AIB or other financial institutions, we will work with those customers to address this issue.
We have added some Frequently Asked Questions (FAQ’s) which can provide you with further information.
If you would like to talk to us about this, you can contact our dedicated number: 0818 300 094 (9am to 5pm Monday to Friday).
Click here to print these FAQs
Frequently Asked Questions (FAQs)
Why am I getting this letter?
We're writing to you because we made a mistake when we restructured your loan account with you. We have fixed our mistake and refunded you.
Why didn’t I receive my letter before you refunded me?
Before we send letters to customers, we make sure all refunds have processed correctly. Once we have processed the refund, we send your letter. We send all letters within three to five working days after the refund is processed.
What was the mistake?
We made a mistake with your loan paperwork. When we restructured your loan account with you, we did not include the accrued interest amount you owed on your previous loan in the details outlined in your new loan paperwork.
As a result, your loan repayments were lower than they should have been. This means that we charged you slightly more interest than we should have.
For a smaller group of customers, we may have also placed your account into an overdrawn position, which resulted in us charging additional interest to your loan account.
Who does this affect?
The issue affects certain customers who requested to restructure/refinance the terms of their loan account.
What is a top-up?
A top-up is when you ask to borrow more money on your existing loan account. This new amount is added to the balance of your existing loan account. Alternatively a top-up may have happened where your loan was restructured or re-contracted with us.
How are we putting this right for you?
We are putting this right by giving back the amount you would have had available to you if we had not made this mistake. We’ll make this payment either to an alternative open AIB account; or where you don’t have one, we’ll send you a cheque. Details are outlined in your letter. If your loan account is still open, we recommend that you lodge this money into your loan account as we will continue to collect repayments on this loan until the interest owed has been repaid.
For a smaller group of customers, we are also giving back the additional interest we mistakenly charged when we made their account overdrawn.
Has the issue been resolved?
Yes, we have corrected the processes and systems to make sure it will not happen again.
What if I am a business customer, what happens?
If the original interest expense did or will give rise to a tax deduction for you (for example, as a business expense), then the receipt of this payment may be taxable. This will depend on your particular circumstances. You should consult your tax advisor for guidance on the matter.
My loan was a joint loan, what happens?
In that case, we will make this payment to an alternative joint AIB account. Where there is no alternative joint AIB account shared by all parties on the loan, all parties will receive a cheque.
What is a Referral Item Charge and why am I getting it repaid?
A Referral Item Charge is applied when a loan repayment is presented for payment on a current account, which does not have enough money in it to cover the loan repayment amount, however the loan repayment is still paid.
If we repaid a Referral Item Charge to you it is because we took additional repayment(s) at the end of your loan from your current account, which resulted is us charging you for a Referral Item Charge by mistake.
What is an Unpaid Fee?
We apply an Unpaid Fee when a loan repayment is presented on a current account which does not have enough money in it to cover the loan repayment amount and the amount is returned unpaid.
If we repaid an Unpaid Fee to you it is because we took additional repayment(s) at the end of your loan not included in your loan paperwork. When we tried to take this additional loan repayment from your current account and there wasn’t enough money in it, we charged you this Unpaid Fee, by mistake.
I am currently taking a payment break as a result of COVID-19, will this impact my arrangement?
This error and refund do not have any impact on your COVID-19 payment break arrangement.
If my letter mentions my Irish Credit Bureau (ICB) or Central Credit Register (CCR) record was affected, do I have to do anything?
ICB/CCR records have not been affected for the majority of customers. If you have been affected, your letter says so.
Where possible, we have corrected your ICB/CCR record in relation to the time period of this mistake only and this is explained in your letter. However, if you think our mistake may have caused other lenders to refuse you credit during this time period, please let us know by calling 0808 300 094 and we will look into it for you.
You will need to give us written confirmation from the lender that refused you credit as a result of ICB/CCR. If we refused you, call us and we’ll look into it immediately for you.
How can I get a copy of my CCR Credit Report?