American Express customers who received statements this week telling them their accounts were cancelled and they should return their cards should ignore the statements, according to a spokeswoman.

The American Express operation in the Republic has been bought by the Bank of Ireland and is now to be run by a Blackrock, Co Dublin-based subsidiary of the bank, Centurion Card Services Ltd. However, difficulties with the transfer of the business led to a number of customers receiving charge statements which should not have been issued. They were also informed their accounts had been cancelled.

These statements were issued from the American Express centre in Brighton, England, which up to May 30th administered the accounts of customers in the Republic. The customers affected are now being contacted by phone by the British centre. Centurion is also writing to the customers telling them to ignore the statements and enclosing correct, alternative statements. Customers are being advised that, if they have already paid money as a result of the Brighton statements, the amount will be credited to their account with Centurion. Customers who have returned their cards are being requested to get in contact with Centurion.

A spokeswoman for Bank of Ireland said it was concerned that it might lose customers as a result of the mistake. She said "a couple of hundred" out of the approximately 30,000 customers in the Republic had been sent the incorrect statements.

She would not disclose how much Bank of Ireland had paid for the business, which is likely to result in about 30 new jobs. New cards are to be issued shortly to American Express customers by Centurion, but in the meantime the old cards are valid.