ABN Amro has become the second Dutch bank to reach agreement on compensating clients who paid too much variable interest on consumer loans.

Details still have to be finalised but the first compensation packages will be paid out before the end of the year, ABN Amro said on Monday. The scheme covers the period from January 2008 and will cost the bank around €250.

Clients will receive between €50 and €1,750.

The Dutch financial services complaints authority Kifid ruled earlier this year that a number of banks, including ABN Amro, did not follow market rates sufficiently when calculating interest rates on variable consumer loans.

Rabobank said last month that it would compensate some 150,000 clients who paid a variable interest rate that ‘did not always closely follow the market interest rate’.