Overcharging scandal - New type of bank robber

Two new whistle-blowers have informed the office of Financial Regulator Matthew Elderfield of fresh allegations of the systematic overcharging of customers by Allied Irish Banks and the Bank of Ireland, along with a number of state-backed financial institutions.

The whistle-blowers have reportedly given the regulator evidence of separate bank rip-off schemes that could have cost as much as €100m.

Over the past decade the banks have already had to repay some €180m to customers for overcharging. The whole thing has given a new meaning to the term “bank robbery”. This should be of even more concern to the public now, as it is currently funding the banks.

Mr Elderfield informed the Joint Oireachtas Committee for Economic Regulatory Affairs, chaired by Deputy Michael Moynihan, that overcharging is now a major concern of his office and an area for enforcement action. He is anxious to ensure that these issues are promptly addressed.

While customers were being overcharged, bank officials paid themselves handsome bonuses and retired with extravagant golden handshakes and generous pensions. The public is currently being saddled with the cost of the bungling and reckless profligacy. Suitable safeguards should be introduced to protect whistle-blowers and encourage others to come forward.