BoI criticised over charges discrepancy

The Bank of Ireland was under fire from the Consumer Council today for treating its customers in the North less well than in the Republic.

It was urged to act now to remove changes from personal account holders in the North following its announcement of free banking for some of its customers south of the border.

The Competition Commission is currently carrying out a legal investigation of the banking industry and the treatment of customers by the ‘Big Four’ banks in the province.

It was launched after the Consumer Council submitted the first ever super-complaint against the banks over the handling of the £1.9bn (€2.8bn) personal account market in the North.

Eleanor Gill, chief executive of the Consumer Council said there had been more change to the personal account market in the year since than in the previous 30 years. But she said more needed to be done.

“While the Ulster and Northern Banks have taken steps to offer their customers a better deal, Bank of Ireland and First Trust Bank continue to ignore customers demands for fee-free banking,” said Ms Gill.

“BOI’s move in the Republic of Ireland serves to further highlight its lack of movement on behalf of its Northern Ireland customers who want to see an end to excessive charges and poor interest payments.”

The Ulster Bank has removed direct debit, standing order and transaction charges from all accounts in credit or agreed overdraft, said the council.

The Northern Bank has removed direct debit and standing order charges from all personal current account holders and launched a fee-free account, it added.

At the same time all banks appeared to have increased their advertising and the Consumer Council estimates that some 25,000 consumers have switched banks in the province in the last year.

The Bank of Ireland responded saying that 80% of its customers in the North enjoyed fee-free banking.

“Bank of Ireland is fully committed to providing products that are competitive and meet the needs of our customers.”