From Monday week bank customers who find themselves in difficulties over repayments face a rate that would make a loan shark like Tony Soprano weep with envy. AIB is to charge, amazingly with the approval of the Financial Regulator, up to 27.05% on “out of order” current and loan accounts from Monday week. This represents a 33% hike in AIB’s surcharge rates.
Last year AIB recorded pre-tax profits of €2.5 billion.
The 27.05% levy may not be the final rate as the European Central Bank yesterday hinted that it may increase rates next month.
It is not so long ago that you could hardly pass a bank without being offered extensive credit. The banks acted as if there was no tomorrow, recklessly giving loans to anyone with a pulse. Now things have changed and the banks are determined to get their pound of flesh.
It is hard to think of an example that more clearly shows how the powerful will walk all over the weak to ensure that their interests are protected.
What an appalling thing greed is. What an appalling example of social irresponsibility.
Is it any wonder that the leaders of the G7 at their recent summit in Washington called for new banking controls to protect societies from this kind of exploitation.