T313 – Personal Loan Outstanding Balance Questions & Answers (Q&A)
We recently wrote to some customers about their personal loans. The variable interest rate on a loan can increase or decrease over its term, but the repayment amount does not automatically change. During the term of the loan the interest rate increased. While the loan operated in line with the credit agreement, we did not remind customers of the potential for an outstanding balance. As a result, we are now providing them with a payment.
We have either sent them a cheque or paid them directly into an AIB account with the reference “AIB Payment T313”.
If you got this letter these Q&A’s may help.
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Why are you writing to me and giving me this payment?
When you applied for this Personal Loan with us, your credit agreement outlined 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.During the term of your loan, the interest rate on your loan increased. While your loan operated in line with your credit agreement, we did not remind you of the potential for an outstanding balance. Therefore, we are providing you with a payment for any confusion this may have caused.
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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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Did you make any changes to my open personal loan account?
No, we did not make any changes to your account.
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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 payment into that account which is outlined in your letter. The payment reference will appear on your account as “AIB Payment T313”.
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Has my credit record been affected by this?
No, your Central Credit Register record has not been affected by this.
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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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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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What can I do with my payment?
You can use your payment as you choose. This will not affect your right to complain.
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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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