Banks accused of ripping off personal loan customers

The Consumers Association is reportedly accusing Irish banks of using a lack of competition to fleece customers seeking personal loans.

Reports this morning said the accusation followed a new survey showing that consumers could save up to €2,000 over the term of a five-year personal loan by shopping around for the cheapest interest rate.

This morning's Irish Independent says a survey it conducted found that some lenders were charging more than twice as much interest as others for such products.

The newspaper said two lenders were offered personal loans at rates of 7.5%, while rates as high as 34% were being charged on loans of smaller amounts.

Across the border in the North, consumers can reportedly avail of loans with rates as low as 6.3%, despite the fact that British wholesale interest rates are higher than those in Ireland.