ING,a global financial institution of Dutch origin offering banking, investments, life insurance, and retirement services, announced that it will offer a compensation to Dutch retail customers with certain revolving consumer loans where the variable interest rate did not sufficiently follow market rates. With this step, ING reacts to a number of rulings by the Dutch Institute for Financial Disputes (Kifid) regarding similar products at other banks.
They have investigated the relevance of these rulings for their floating-rate credit products in the Netherlands. This is expected to concern approximately 10% of the contracts for these products. The Dutch Consumers’ Association (Consumentenbond) has reacted positively on ING’s intention and is prepared to further discuss the execution and details of the scheme, which is expected to be completed before the end of 2022.
ING will book a provision of 180 million euros in its third quarter 2021 results for the compensation and costs of executing the scheme.