MBNA fined for overcharging customers

Credit card firm MBNA has been fined €750,000 by the Central Bank for overcharging customers.

Over 370,000 customers were overcharged almost €17 million between July 1st and October 26th 2009 after the company wrongly applied interest rate charges to some credit card accounts from the transaction date.

In addition, the firm applied incorrect interest rates on some accounts used for cash advances.

"The systems and controls breaches arose because the firm failed to ensure that there was consistency between the firm's systems and the terms and conditions," the Central Bank said.

"It is noted that although controls existed in respect of the review process, these controls were not effective and resulted in the overcharging occurring."

The Central Bank acknowledged MBNA had reported the error and refunded customers at the earliest opportunity and had fully cooperated with the investigation into the matter.

It said the penalties imposed on MBNA reflected the importance the Central Bank placed on consumer protection and the requirement to have adequate systems and controls in place