The Central Bank has directed a number of financial institutions to cease “unfair” practices relating to out-of- order charges on current accounts.

During an examination of 300 current accounts across five banks, the Central Bank identified a number of “concerns” with the way in which certain out-of-order charges were applied.

These charges arise when a customer uses their account outside of approval limits.

The Bank’s examination focused on unpaid item fees, and surcharge interest, which applies to balances in excess of agreed overdraft limits.

It also looked at referral fees, which apply to transactions that cause an account to become overdrawn, or to breach an overdraft limit.

Such charges are more likely to arise for customers in financial difficulty, who may struggle to keep a positive balance in their current accounts.