SEB to repay customers EUR 0.5 mln interests charged by mistake

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SEB Pank has detected a technical error in its system for calculating interest on overdue loans and will reimburse the interest paid in excess to the private and corporate clients concerned.

The total amount to be paid out is nearly half a million euros and the average size of payout per customer is five euros, the bank said on Thursday.

The reimbursements concern 101,797 loan agreements of 72,026 customers. On 99,546 of the agreements the payment will be executed on Thursday and the sum total to be paid out is 493,031 euros, making for an average payment of five euros.

As regards the remaining 2,251 loan agreements the bank still needs to further assess them and the excess payments will be returned to the clients in due course.

At the end of 2012, SEB Pank identified an error in the bank system due to which interest on overdue loan payments continued to accrue. In the case of overdue loans the system should have only calculated interest in arrears and the interest payments should have stopped for the overdue period. The bank immediately fixed the error and identified clients who had been subject to erroneous interest calculation.

The bank will reimburse all clients who had made excess interest payments on overdue loans and had paid both loan interest and interest in arrears on overdue loans. Additionally, SEB will pay an interest in arrears on the excess interest rate payments. For this purpose, the bank shall apply the statutory interest rate set out in the Law of Obligations Act in the amount of up to 11 percent annually applicable for the period prior to the adoption of the euro and in the amount of 8.25 and 7.75 percent thereafter.

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