AIB to repay thousands of customers after admitting overcharging them interest

The bank owned up to a ‘process error linked to top-up loans for personal customers’

AIB has pledged to repay its customers more than €2.1m after admitting it overcharged them interest on personal loans.

Some 85,000 customers are in line for an average repayment of €25 after the bank owned up to a ‘process error linked to top-up loans for personal customers.’

The error relates to customers who had taken out a personal loan – and then looked to top it up at a later date.

Newstalk Business Correspondent Vincent Wall said it is still not clear when the bank made the error.

“It relates to people with mainly smaller personal loans who went to look for a top-up of those loans,” he said.

“When the bank approved those top-up loans, it also transferred the interest accumulated on the previous loan into the new top-up loan account.”

“So the new interest charge was higher than it should have been.”

The bank informed customers of the error this morning and confirmed it will repay everyone affected.