Credit company Australian Guarantee Corporation (AGC) will refund $100,000 worth of interest wrongly charged to its customers.

The mistake relates to some Creditline accounts, which were promoted as having a guaranteed interest-free period.

AGC introduced a $2.50 monthly, account-keeping fee in October and some customers have complained they were charged interest on the fee.

After an investigation by the Competition and Consumer Commission, AGC has agreed to reduce the fee to compensate customers.

The company says a computer problem caused the mistake.

ABC

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