T306 – Personal Loan Outstanding Balance Questions & Answers (Q&A)
We recently wrote to some customers about their personal loans. During the term of the loan, the interest rate on their loan increased. This resulted, or may result, in them having an outstanding balance when the term on their loan expired or is due to expire.
As we did not remind them of this, we are now providing them with a goodwill gesture payment.
We have either sent them a cheque or paid them directly into an AIB account with the reference “AIB Payment T306”.
If you got this letter these Q&A’s may help.
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Why have I received this letter?
When you applied for this Personal Loan with us, we told you in your credit agreement that there may be a balance outstanding at the end of your loan term if interest rates increased. We also told you that we would not automatically change your repayments if this happened.As the interest rate on your loan increased this meant that you had or will have an outstanding balance when the term on your loan expired or is due to expire.As we did not remind you of this, we are providing you with a goodwill gesture payment.
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When did my interest rate increase and what did it increase to?
Each customer’s loan is different, if you want to know more about the interest rate increase, you can ring us on 0818 726 726.
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I have more than one personal loan, how do I know which one is affected?
We have sent you a letter for each affected loan. The account number will appear on each letter.
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Has the Central Bank of Ireland (CBI) been told?
Yes, we have told the CBI. We have kept them up to date on everything we are doing for our customers.
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How will I know if my credit record has been affected?
If we are amending your Central Credit Register (CCR) record we have included this information in your letter.The Irish Credit Bureau (ICB) closed in 2021, however if your record was affected, we have included this in your letter.
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What steps have you taken to make sure that this won’t happen again?
We have updated our internal procedures and put additional measures in place to ensure that this does not happen again.
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Why does my letter not include a cheque?
If you have a current or appropriate deposit account with us, we have put your goodwill payment into that account which is outlined in your letter. The payment reference will appear on your account as “AIB Payment T306”.
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What can I do with my payment?
You can use your goodwill gesture payment as you choose. This will not affect your right to complain.
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Did you make any changes to my open personal loan account?
No, we did not make any changes to your account. However, if you want to change your repayment amount or discuss other options so that your Personal Loan will be cleared by the expiry date, you can ring us on 0818 726 726.If you do not do anything, we may continue to take repayments until the outstanding balance is cleared. The outstanding balance may be reported as arrears when the term on your loan expires. This may affect your credit rating, which may limit your ability to get credit in the future.
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Who can I speak to if I have a question or want to complain?
If you have a question about the information included in our letter or want to complain, you can ring us on 0818 726 726 between 9am and 5pm, Monday to Friday, excluding Bank Holidays.
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