NI banks accused of overcharging customers

Northern Ireland’s Big Four banks were today accused of overcharging customers, with overdraft fees ten times more than would be levied in Britain.

The Bank of Ireland, Northern Bank, Ulster Bank and First Trust all came in for criticism in a report in the latest edition of Which? magazine.

It accused the banks of being “stuck in the last century” when it came to charges on current accounts.

They said one bank charged £224 (€341)a year for an overdraft facility which could be obtained for £22 (€33) elsewhere and of charging £186 (€283)for another which would cost just £1 (€1.52) a year with any of the Which? Best Buy accounts.

Which? also said customers who remained in credit all the time at any of the Big Four could get interest 30 times high than they were actually paid.

The magazine told dissatisfied customers to log on to its website to get details of where they could get better banking deals.

Ashleye Sharpe, head of money at Which? said: “The big Northern Irish banks are stuck in the last century when it comes to their current accounts.

“Because of outmoded fees and transaction charges on overdrafts some customers are being charged more than £200 a year when they could be paying less than £20 elsewhere.

“It’s time for these banks to stop ripping their customers off,” she said.

The Federation of Small Businesses in Northern Ireland demanded an answer from the banks over their charges.

John Friel, FSB vice chairman, said the organisation was “extremely concerned” at the report and would be asking for explanations from the Big Four.

“Small businesses are already being burdened with high tax and insurance without the banks creating further problems,” he said.

Mr Friel urged the banks to respond to the report and if necessary take “appropriate action to ensure that small businesses are treated the same as their UK counterparts in relation to banking charges”.