Process to repay €100m to Anglo clients approved

The special liquidators of Irish Bank Resolution Corporation have secured court orders approving a process to govern their planned repayment of an estimated €100m in overcharged interest by the former Anglo Irish Bank.

The orders were sought arising from a High Court finding of 2011 that the bank had overcharged a businessman, John Morrissey, of Palmerston Rd, Ranelagh, some €143,676 interest on an overall sum of some €31.6m allegedly owed to it.

The High Court found the overcharging arose from the bank’s misinterpretation of the terms and conditions of loan interest which were common to the vast majority of its commercial loans.

The liquidators took legal advice following that judgment, and were advised borrowers who were overcharged interest were entitled to have claims corresponding to the overcharged amount admitted in the bank’s special liquidation.

It set up a remediation team to deal with the matter and it has found 6,435 borrowers with 15,571 accounts were affected. Based on the team’s work to date, it is estimated the potential total refund could be about €100m, Kieran Wallace, joint special liquidator, said in court documents.

In those circumstances, Michael Collins, counsel for Mr Wallace, applied at the Commercial Court yesterday to Mr Justice Brian McGovern to approve directions for the remediation process.

Those directions included approval for various assumptions the court was told will have to be made given existing data limitations, including assumptions where the likely refund sums are sufficiently low such as not to merit time and money being spent on the individual examination of files.

© Irish Examiner Ltd. All rights reserved

Email Updates

Receive our lunchtime briefing straight to your inbox

More in this Section

‘Gentleman’ business leader James O’Sullivan dies of cancer, 58

Lenders slammed for tracker mortgage scandal

UK’s pre-Brexit ‘recovery’ is as illusory as the phoney war

S&P analyst says there's no financial reason to delay AIB sale


Breaking Stories

Lloyds Banking Group annual profits soar to £4.24bn

Study finds that a third of hotels in Ireland changed hands in past five years

Minister to announce reduction in fees paid by smalll radio stations

Lifestyle

Instagrammer says being snap happy has been extremely lucrative

Here's how to make money out of your social media following

GAMETECH: Dawning of a brand new experience

A real Catastrophe as hit show returns without Carrie Fisher

More From The Irish Examiner