Advertisement

We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

Eamonn Farrell/Photocall Ireland

Central Bank tells banks to scrap certain 'out-of-order' account charges

An inspection by the Central Bank leads to directions that certain ‘out-of-order’ charges are unfair and should be dropped.

THE CENTRAL BANK has ordered some Irish banks to drop certain charges levied on current account holders who exceed their spending or credit limits.

An inspection of over 300 current account options provided by five Irish banks showed a number of fees, although permitted under the terms and conditions of each bank’s offers, were being applied in unfair ways.

The inspection examined three ‘out-of-order’ charges, specifically surcharge interest, referral or overdraft fees and unpaid item fees – arguing that these charges were more likely to be incurred by customers who are already in financial difficulty.

As a result, one bank has been told to stop applying a minimum €2.54 surcharge interest charge, which had been levied even when the interest accrued was less than this amount.

Two other banks were told to stop charging both a referral fee and an unpaid fee in circumstances where an item, such as a direct debit payment of a bill, was unpaid.

One bank – which had charged a referral fee based on whether sufficient funds were available to pay for an item at the time of presentation and not by the close of business, as is the industry norm – was also direct to amend its practices.

The Central Bank said it had asked banks not to levy unpaid item fees on customers where those penalties were greater the value of the unpaid item.

In future, all banks have been asked to include details of unpaid fees in bank statements, after the Central Bank learned that only one of the five banks actually provided such details in the customer statement.

The Central Bank’s director of consumer protection, Bernard Sheridan, said consumers needed “to be aware that they will incur out-of-order charges when they do not have sufficient funds in their account to meet outgoing payments.

“It is important that consumers keep an eye on their bank accounts and take steps to avoid such charges where possible.”

Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.

Close
16 Comments
    Install the app to use these features.
    Mute Pat Lonergan
    Favourite Pat Lonergan
    Report
    Aug 1st 2018, 8:07 AM

    Day 1 and all ready I have made up my mind,what a poor selection.Really shows what a good President Micheal D is.

    91
    Install the app to use these features.
    Mute Gus Sheridan
    Favourite Gus Sheridan
    Report
    Aug 1st 2018, 8:32 AM

    @Pat Lonergan: shows how we are scraping the bottom of the barrel, all our best candidates have left, and we are left with the dross.

    32
    Install the app to use these features.
    Mute Gus Sheridan
    Favourite Gus Sheridan
    Report
    Aug 1st 2018, 8:33 AM

    @Pat Lonergan: he definitely is not.

    20
    See 2 more replies ▾
    Install the app to use these features.
    Mute Boris Farage
    Favourite Boris Farage
    Report
    Aug 1st 2018, 8:36 AM

    @Gus Sheridan: Best of that lot??? Without a shadow of a doubt.

    10
    Install the app to use these features.
    Mute Pat Lonergan
    Favourite Pat Lonergan
    Report
    Aug 1st 2018, 10:23 AM

    @Gus Sheridan: So which of the as of now declared candidates would you say comes with in as ass roar of Micheal D?

    6
    Install the app to use these features.
    Mute Senan Hogan O'Brien
    Favourite Senan Hogan O'Brien
    Report
    Aug 1st 2018, 7:58 AM

    How depressing

    44
    Install the app to use these features.
    Mute James O'Brien
    Favourite James O'Brien
    Report
    Aug 1st 2018, 8:03 AM

    A room full of headless chickens I’d say that was fun

    49
    Install the app to use these features.
    Mute Colonel Grant
    Favourite Colonel Grant
    Report
    Aug 1st 2018, 10:47 AM

    There has to be a collective noun for a group of complete eejits . This was a classic case.

    21
    Install the app to use these features.
    Mute Ray Hyland
    Favourite Ray Hyland
    Report
    Aug 1st 2018, 10:57 AM

    So it looks like we’re going to have a half dozen candidates again. All because it’s probably easier for the media to find stories if there’s more people involved. Pointless if you ask me.

    9
    Install the app to use these features.
    Mute Victor Brown
    Favourite Victor Brown
    Report
    Aug 1st 2018, 1:24 PM

    The Rás for The Áras…. Attention seekers

    4
    Install the app to use these features.
    Mute anthony byrne
    Favourite anthony byrne
    Report
    Aug 1st 2018, 2:57 PM

    Duffy who gets his kicks out of hunting innocent animals, not fit to represent Ireland, vile person.

    7
    Install the app to use these features.
    Mute Mickey Fennessy
    Favourite Mickey Fennessy
    Report
    Aug 1st 2018, 10:48 PM

    Gavin Duffy if u like people who torture animals for fun

    2
    Install the app to use these features.
    Mute Marie Setterfield
    Favourite Marie Setterfield
    Report
    Sep 11th 2018, 5:03 PM

    Not much there to get excited about

    1
Submit a report
Please help us understand how this comment violates our community guidelines.
Thank you for the feedback
Your feedback has been sent to our team for review.
JournalTv
News in 60 seconds