Tesco bank to pay out £43million after statement blunder hit 175,000 customers Supermarket's banking arm accidentally breached Consumer Credit Act Thousands didn't receive loan statements while accruing owed interest The average customer is set to receive a £228 cheque in the post Tesco already in crisis after 'cooking books' - illegally overstating profits Eight executives have been suspended following £263 million black hole Tesco Bank is set to pay out £43million in compensation after a loan statement blunder left 175,000 customers out of pocket. The supermarket giant's banking arm has offered an apology to customers after a 'technical breach' meant they failed to send out personal loan and credit card statements. It is the latest in a string of errors to hit Britain's largest retailing group, currently under criminal investigating for 'cooking their books' - illegally overstating profits. Pay out: Tesco have made a £43million provision to reimburse customers illegally charged interest on loans Online Tesco Bank has admitted the breach of industry rules and those who accrued interest on loans during that time must now be refunded - with the average payout £228. Last week, one customer received a cheque for £100 in the post, becoming the first person to receive compensation for the mistake - which breached the 1974 Consumer Credit Act. Another customer, Stuart Gibson, wrote on Twitter: 'Apparently Tesco bank forgot to send me an annual statement for five months on a loan I had. So they've sent me £450 instead. That's nice.' Another, Steve Sharp, posted: 'Strange day as got a refund cheque from Tesco Bank for interest on a loan i had in 2011 cos they didnt send me an annual statement.' Under the Act, failure to provide prompt "post-contractual" information is viewed as a statutory breach. An offending bank or building society is then obliged to refund any interest or charges that were incurred in the period between when the information should have been sent and when it actually went out. By failing to send prompt "post-contractual" information to customers regarding their personal loan and credit card statements, Tesco bank breached the Consumer Credit Act. Customers accrued interest on loans without receiving any documentation on what they owed. Other banks and building societies are in the process of making similar refunds. In March, the Office of Fair Trading (now no more) confirmed that just short of 500,000 customers would be receiving £149 million from 17 unnamed financial institutions as a result of Consumer Credit Act violations. A Tesco spokesman said: 'As stated earlier in the year, we have put in place a redress programme to return interest and charges to customers who did not receive documentation in line with the requirements of the Consumer Credit Act. This redress programme has commenced and we are writing to all of those customers affected. Customers do not need to take any action however if they do have questions they can contact us as normal. 'It's not an incident of mis-selling. This is an industry-wide issue. In March, the Office of Fair Trading confirmed that just short of 500,000 customers would be receiving £149 million from 17 unnamed financial institutions as a result of Consumer Credit Act violations. But for Tesco, the blunder is a fresh blow after it was recently plunged into crisis for 'over-stating' its profits. The group has formally been placed under criminal investigation by the Serious Fraud Office (SFO) following its discovery of a £263 million black hole in profit expectations. Crisis: New Tesco boss Dave Lewis launched an inquiry into the bank's profit overstatement crisis last month Following the allegations, eight of Tesco's executives have been suspended and last month the supermarket revealed its half-year profits had slumped 91 per cent to £112m. The bank has already set aside £240million for customers who were miss-sold payment protection insurance. September 22: Four executives at Tesco suspended after the supermarket giant admitted it overstated its profits guidance to the City by £250million. Shares dived to their lowest level in 11 years as the revelation triggered its third profits warning in as many months. September 23: Firm plunged into further crisis as it emerged the chain's sales had fallen at their fastest rate in more than 20 years. Figures showed total spending by shoppers over the past 12 weeks was down 4.5 per cent year on year - the worst trading fall seen by the retailer in more than two decades. October 1: Britain's financial watchdog, the Financial Conduct Authority, started a full investigation into the company in the wake of the accounting scandal October 2: Billionaire investor Warren Buffett conceded that his investment in Tesco was a "huge mistake" October 7: Tesco asks a fifth senior executive, commercial director Kevin Grace, to step aside October 14: Firm suspends three more executives.