About 110,000 AIB credit card holders have waited in line for a pay out of up to £200 after a redress scheme had been addressed by Pinnacle Insurance PLC (Cardiff Pinnacle) through AIB between August 1 2006 to 2014.
The new scheme, according to the Central Bank is put in place because the insurance policy was unnecessary as customers have cover for amounts greater than £5 under the terms and conditions of their AIB credit card.
According to Central Bank’s Director of Consumer Protection Bernard Sheridan:
“We require all firms to make full disclosure to consumers of all relevant material information when selling any financial product. It is important that consumers can have confidence that firms are acting in their best interests and that they are not sold any cover which they do not need. Where this has occurred it is our priority to ensure that consumers receive full redress. We encourage all affected consumers to make a claim.”
A similar compensation scheme in Britain only reported a response rate of just 33 per cent.