Payment Protection Insurance (PPI)

Questions & Answers

We recently wrote to affected customers regarding their mortgage account and a mistake we made on the associated PPI policy. In some cases, a mistake occurred where one customer on the PPI policy asked us to cancel their portion of the cover. As we did not action this for the customer, their policy remained open and we continued to charge them the monthly premium. We are now refunding these premiums to the customer and if their policy is open, giving them the opportunity to continue with their PPI cover.

If you got this letter the following Q&A may help to answer any questions you might have.

Why have I received this letter?

You asked us to cancel your PPI cover on the joint policy set up on your mortgage account. Unfortunately, we did not cancel your PPI cover, which meant that we continued to charge you for PPI.
What is PPI?

PPI is an optional insurance product which can help you make your mortgage repayments in the event of a successful claim if you suffer an accident, illness or involuntary unemployment (business failure if you’re self-employed). The policy covers your mortgage payments up to a maximum of €2,000, for a maximum of 12 months. It also provides lump sum cover for specified critical illness of up to €24,000. The level and conditions of cover are set out in the terms and conditions.

This product is underwritten by AXA France IARD S.A., trading as AXA Partners – Credit & Lifestyle Protection.
When did you find out about this issue?

We discovered this mistake in October 2020. Since then we have identified all affected accounts.
How are you correcting this mistake?

We are writing to each affected customer and refunding the premium we continued to charge by mistake. This includes an interest payment for not having access to the money overpaid. For accounts with open policies, this includes the premiums due to be paid over the next 60 days.

Where you continue to have an active policy with the insurance provider, AXA Partners, instead of cancelling your policy now, we are giving you the option to continue your PPI cover, as PPI is no longer available in the Republic of Ireland. To continue with this cover you must meet the eligibility criteria outlined in your letter.

If you believe you could have made a successful claim after your PPI policy should have been cancelled, please contact us so we can review this for you.
How are you making sure this mistake doesn’t happen again?

We have updated the internal process which resulted in this mistake.
Has the Central Bank of Ireland (CBI) been informed of this mistake?

Yes, the CBI has been informed in line with our regulatory reporting obligations.
I have the opportunity to keep my PPI cover now. What do I need to do?

If your account is open, and your policy remains active you now have the opportunity to keep your PPI cover. You first need to check that you meet the eligibility criteria set out in the letter we sent to you.

Please contact us within 60 days of the date of your letter to confirm whether or not you want to keep the PPI cover. You can call us on 0818 300 157 between 9.00 and 17.00, Monday to Friday, and we will take you through the next steps.

If we do not hear from you within the 60 days, we will cancel your PPI cover for you, as you originally requested.
I want to keep my PPI cover. Can I change my monthly PPI benefit?

Your monthly PPI benefit is the amount paid towards your monthly mortgage repayment in the event of a successful claim. This amount depends on the type and level of PPI cover you have. If you would like further information please ring us on 0818 300 157 between 9.00 and 17.00, Monday to Friday and we will take you through the next steps.
My PPI policy is closed/I do not want keep PPI on my mortgage account. Do I need to do anything now?

If you do not want to keep PPI cover, please ring us on 0818 300 157 between 9.00 and 17.00, Monday to Friday to let us know your decision. If we do not hear from you within the 60 days as noted in your letter, we will cancel your PPI cover for you as you originally requested. PPI is no longer sold in the Republic of Ireland.

If you believe you could have made a successful claim after your PPI policy should have been cancelled, please contact us so we can review this for you.
If I choose to keep PPI cover now, can I cancel my PPI policy at any time?

Yes, PPI is optional. You can cancel it at any time by writing to AIB Mortgage Bank u.c., Home Mortgages, 1 Adelaide Road, Dublin 2, DX183.

A cancellation instruction must be signed by all policyholders.

PPI is no longer sold in the Republic of Ireland, so if you decide to cancel your cover, you may not be able to get this cover again in the future.
If I cancel my policy what alternative protection can I get?

If you cancel your PPI policy and want to get alternative protection, you may benefit from a review of your protection needs with either an independent financial advisor, or one of our AIB Financial Advisors to help you make any decisions. If you would like to talk to an AIB Financial Advisor, please contact us or visit www.aib.ie/our-products/investments/plan-for-financialneedsandgoals.

Mortgage PPI is no longer sold in the Republic of Ireland. You can however take out other protection policies, such as income protection or critical illness cover which may cover your financial outgoings if you were unable to work.
What happens to my PPI when my mortgage term is finished?

We will cancel your policy for you once your mortgage term comes to an end and your account is closed.
Who can I talk to if I have a question or want to complain?

If you have a question or want to complain please ring us on 0818 300 157 or you can write to us at:

AIB Insurance Services, AIB Bank, Block H, Central Park, Leopardstown, D18 CK74.

You can also complain to the Financial Services & Pensions Ombudsman (FSPO). The FSPO seeks to resolve complaints through mediation, or through investigation and adjudication. Information about the services of the FSPO is available from www.fspo.ie.