Banks to come under renewed scrutiny

Banks to come under renewed scrutiny

Irish banks are to come under renewed scrutiny from the Office of the Data Protection Commissioner after it found AIB had committed a serious breach of the data protection laws.

It emerged earlier this week that AIB had misreported missed loan repayments relating to about 12,000 its customers to the Irish Credit Bureau.

AIB’s error had the effect of making the customers’ credit histories appear worse or not as good as they should have been.

The bank reported the number of missed repayments, instead of the number equivalent months overdue as required by The Credit Bureau.

The Office of the Data Protection Commissioner has expressed disappointment that it took AIB six weeks to resolve the error once it came to light.

The Commissioner now plans to check other financial institutions for the same problem.

AIB is investigating the impact of the error on a case by case basis, to see if affected customers had been put at a disadvantage when applying for new loans. It has also promised to cover the €6 cost of a credit history report for each affected customer.

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