Dáil Éireann Debate, Tuesday - 20 November 2012
230. Deputy Michael McGrath asked the Minister for Finance the number of customers affected and the total value of bank fees and interest refunded to customers in respect of AIB's review of mortgage and loan repayments which fall due on non-calendar dates; and if he will make a statement on the matter. [51501/12]
View answerI am informed by AIB that as a result of its review of mortgage and loan repayments which fall due on non-calendar date’s 27,894 accounts were impacted with €117,502 of bank fees and interest refunded to customers. The issue related to loan repayments falling due on the 29th, 30th or 31st of a month which did not include those calendar days.
The Terms & Conditions on Personal Loans and Mortgages stated that if a customer’s repayment was due on a day the Bank was not open for business, then the customer must pay it on the next business day. If a customer’s repayment was due on the 29th, 30th, or 31st day of a calendar month which did not include these dates, the customer must pay it on the first business day of the next calendar month.
AIB has indicated that there was inconsistency between what was stated on the Banks Terms & Conditions in relation to payment dates for collection of such repayments and the payment dates on which the Bank Accounting system actually collected these repayments.
AIB has also informed me that this has since been rectified with changes to Terms and Conditions for new Personal Loans and Mortgages. All accounts impacted by the issues were refunded on 26th June 2012.
