Bank customers ‘not overcharged’
Speaking at the Oireachtas Joint Committee on Finance, the director of consumer protection, Bernard Sheridan said that despite hikes in fees of 165% and 250% by the two pillar banks, he didn’t believe that Irish consumers or business people were being unfairly treated by the banks.
“Our hands are tied to some extent in relation to some charges but not in relation to the majority of charges,” he said.
The chief executive of Isme, Mark Fielding said the banks had no credibility left and yet the Government was constantly giving in to their demands.
“How can our Government be continuously ‘hoodwinked’ by discredited bankers? More importantly, how can SMEs survive under this new crippling onslaught?” he said.
Mr Fielding said that the planned introduction of a price hike of 165% by AIB for handling fees and a 250% increase in foreign exchange were crippling businesses.
Mr Sheridan said that all charges by banks prior to Section 149 of the Consumer Credit Act 1995 coming into effect in May 1996 “stood notified” and that any increases up to a certain ceiling could be brought in without needing to notify the Central Bank.
Fine Gael’s Kieran O’Donnell said he was “stunned” by the admission and called on the Central Bank to inform the committee how many increases have been brought in since 1996 which took advantage of the previous regime.
“How in God’s name can we have charges that are now being brought in by banks who lodged them prior to that piece of legislation coming in. How were they allowed to do this when it would have such an impact 17 years later? I’d say there was a stampede and they were lodging these notifications in truckloads,” he said.
Independent TD Stephen Donnelly said studies had shown that Irish businesses and citizens were being overcharged by banks for decades.
“Various reports show that Irish banks make more money from Irish businesses and citizens than other comparable banks in other countries and it has been going on for a long time — at least two decades.”
