€61m of interest to customers who topped up personal and small business loans between 1999 and 2019 is to be paid out by AIB.
The bank said customers affected were not overcharged, but that the bank’s paperwork should have been clearer in setting out interest terms.
According to the Irish Independent, the bank has begun contacting customers.
All personal loan customers are expected to be written to in July and small businesses will be contacted in September.
AIB chief executive Colin Hunt said the issue had been “self identified” by the bank and customers were not overcharged.
“The money was owed to us on the facilities,” he said.
However, because the standard of documentation was not at the level it should have been the bank had decided to return the money involved to customers.
The Central Bank had been informed, he said.
