AIB WILL BE contacting some 110,000 customers who may be entitled to compensation following a review of the charges relating to card protection insurance.
The Central Bank confirms that it has been engaging with AIB regarding the establishment of a voluntary redress scheme for consumers who purchased card protection insurance from Pinnacle Insurance plc (Cardif Pinnacle) through AIB.
Optional insurance
The card protection insurance product was offered to customers as an optional insurance within the credit card application process.
The product insured customers for, among other things, liability to a card issuer as a direct result of unauthorised or fraudulent card transactions for up to €1,500 prior to reporting card loss or theft and for up to €75,000 after reporting the loss.
However the insurance was not required as customers were already covered for amounts greater than €75 under the terms and conditions of their credit card.
The Central Bank said the potential liability may have been “overstated in advertising and/or printed materials” which may have influenced customers to purchase the insurance when it was not perhaps needed.
All customers impacted will be given the opportunity to claim a refund of the premiums paid.
For more information visit the bank’s website here.
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