Irish banks are ‘ripping off’ consumers

IRISH consumers are being ripped-off by Irish banks who are charging a third more interest on overdrafts and credit cards than the average rate imposed by banks across Europe.

In a historic move the Central Bank and Financial Services Authority of Ireland yesterday with the European Central Bank published a new series of retail interest rate statistics for the eurozone area for the period January to September, 2003. The figures reveal pluses and minuses for customers of Irish financial institutions with mortgage payers faring better than the eurozone average, but deposit account holders, credit card users and the holders of overdrafts all faring far worse that their European counterparts.

Every month since January the Central Bank surveyed 17 banks representing the largest institutions within the relevant loan and deposit categories in Ireland. This information forms the basis for the Irish segment of the pan-Eurozone survey and takes into account hidden and extra charges also. The most glaring anomaly came in the overdraft and credit card interest rates charged to ordinary non-business borrowers on the 2 billion they owe Irish banks.