T302 Questions and Answers
We recently wrote to some customers about their personal loans. When these customers applied for a loan with us, there was another loan type available to them that had a lower interest rate at times during the term of the loan. These customers received the Standard Personal Loan, but we should have offered them the option of the Personal Base Lending Rate Loan.
As we may not have offered them the option of the Personal Base Lending Rate Loan at the time, 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 T302”.
Some customers with open accounts now have the option to apply within 60 days from the date of their letter, to move the balance on their personal loan to a Base Lending Rate Loan.
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 a personal loan with us, there was another loan type available to you based on the amount of the loan you were applying for. This loan type, the Personal Base Lending Rate Loan, had a lower interest rate than your loan type, the Standard Personal Loan at times during the term of the loan.We agreed the Standard Personal Loan with you at the time and the rate on your account operated in line with your Credit Agreement and Terms & Conditions. However, as we may not have offered you the option of the Personal Base Lending Rate Loan, we are now providing you with a payment.
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What is a Personal Standard Loan?
The Personal Standard Loan is available for all personal loan types and amounts. The interest rate on this loan is a variable interest rate, which is set by us and means the rate can change.
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What is a Personal Base Lending Rate Loan?
The Personal Base Lending Rate Loan is primarily available for personal loans over €50,000.The interest rate on this loan is made up of an agreed interest margin and a base rate. The agreed interest margin is outlined in the Credit Agreement. The base rate is influenced by the market and we review it each week. It is determined by the daily average of the EURIBOR rate over a three-month period.In line with our Terms and Conditions, we may change the composition of the Base Lending Rate, as we do with all our variable interest rates.
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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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What steps have you taken to make sure that all suitable options will be offered to customers?
We have updated our internal procedures so they are clear about what options should be offered to customers.
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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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Has this affected my Central Credit Register (CCR) record?
No, this has not affected your CCR record as the rate on your loan operated as agreed.
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What does my payment include?
We have calculated the payment based on the difference between the interest we charged on your loan and the interest that we would have charged if your loan was on the Base Lending Rate, whenever this rate was lower. Your payment also includes compensatory interest.
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What is compensatory interest?
Compensatory interest is interest paid by us, to you for not having access to the money that you paid while your loan was on the Standard Personal Loan compared to what you would have paid had you been on the Personal Base Lending Rate Loan.
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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 T302”.
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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.You do not have to apply any of your payment to your loan however, if you do, this will reduce the balance on the loan.
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Did you make any changes to my personal loan account?
No, we did not make any changes to your personal loan account. Your balance, repayments and term remain the same.
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In my letter, I was given the option to apply for a Personal Base Lending Rate Loan. What do I need to do?
If you want to move the current balance on your affected loan for the existing term remaining to a Personal Base Lending Rate Loan, you can apply by contacting us within 60 days from the date of your letter. You can ring us on 0818 726 726 between 9:00 and 17:00, Monday to Friday, excluding Bank Holidays, and we will talk you through the next steps.
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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.
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