AIB staff cover-up report unveiled

THE final report of the financial services regulator, IFSRA, will today disclose if any individuals within AIB were aware of overcharging at the bank.

The regulator’s investigation has been focussing on how the overcharging of foreign exchange customers went unnoticed by the bank’s management for more than eight years.

Asked at the publication of the interim report in July if there were reasons to believe in a potential cover-up, IFSRA chief executive Liam O’Reilly said: “That is why we are doing this investigation.

“We have grounds to believe that something was going on but we need to find out the extent, the degree and who [was involved].”

The investigation of the overcharging was completed some weeks ago.

It looked at whether AIB staff knew that customers were being charged twice published fees for foreign currency deals.

The gaffe only became public after an AIB employee contacted RTÉ’s Charlie Bird.

That set off a chain of inquiries by IFSRA and the bank’s own troubleshooter, the former Comptroller and Auditor General Laurie McDonnell.

The initial inquiry attempted to discover how many customers were affected and how much they were owed.

AIB has set aside €50 million to cover what is the latest scandal to hit the bank in recent years.

A sum in the region of €25m will be refunded to customers.

The interim report found that a systems breakdown led to the problem in the first instance, but the final review will find out if any staff were responsible.

The investigation of the foreign exchange gaffe also uncovered a series of other blunders, including:

34,000 student account holders who were owed €1.4m.

24,000 people who had fees for overdraft limits incorrectly applied, costing €600,000.

950 consumer lease agreements terminated early, costing €230,000.

2,436 customers who were not given personal savings loan discounts worth €196,000.

AIB said that although customers were technically overcharged, its foreign exchange customers were not ripped off and that its rates were amongst the most competitive in Ireland.

It said it was compensating those affected even though there was no legal obligation.