The compensation will be around £25 each year for the products of AIB Group to about 2 million people after they were sold with a credit card cover which they did not need. This is revealed by the Financial Conduct Authority this week. One of the major features of the AIB Group products was an insurance that covers fraudulent use if the card was stolen or lost. However, this feature was unnecessary because the issuers of the card are responsible for any transactions when the cards are reported as stolen or lost.
From the recent news, compensation is estimated at £25 each year; they trade in Northern Ireland as First Trust Bank and in Britain as Allied Irish Bank, Capital One, Barclays, HSBC, Northern Bank which is trading as Danske Bank, Lloyds, Tesco Personal Finance, Santander, Royal Bank of Scotland and Co-operative Bank. Eligible customers will be able to get a letter in the succeeding weeks from the Al Scheme Limited and they are allowed to vote on what scheme will be used in April or May.
The City watchdog has warned the consumers to avoid companies of claims-management when they seek compensation. This news is a proof that there are so many individuals getting into too much debt or unnecessary debts because of the credit cards they own. An individual owns more than two credit cards, if the owner cannot control his spending, then he will be left with so much debt in the future. This is one of the major reasons why people are getting loans from lenders to pay high credit card bills, what is more frustrating is that they get a secured loan. One of the lending companies that provide such loan is the Homeowner loans.
A borrower can secure a loan amounting from 5,000 euros to 250,000 euros and what is more beneficial for those who badly needs money is that they have low APR. Also, the loans are tailored depending on the personal situation of the borrower and they cater to both good and bad credit applicants. Every loan application is evaluated thoroughly, so this is a clear indication that they accept applicants from various backgrounds. However, before you apply for a secured loan, you must comply with the requirements such as the capability to repay within the agreement – more than 18 years old residing in the UK and must be employed.
This news involving about 2 million people is a milestone in helping credit card owners who are coping with the skyrocketing interest rates and hidden fees charged like the products of AIB Group.