Meeting sought over AIB

The Irish Bank Officials Association has sought an urgent meeting with the Minister for Finance to discuss AIB's overcharging of some of its foreign exchange customers.

IBOA general secretary Mr Larry Broderick said its members are seriously concerned about the latest controversy to hit Irish banking and said the union had been inundated with calls from worried staff and customers.

"It is imperative that confidence in our banking system is restored as soon as possible and this can only be achieved by a quick, open and totally transparent investigation into what has occurred and why."

The union's executive committee has met to discuss this issue and has expressed alarm and disquiet over recent revelations. AIB is estimated to have overcharged some customers by as much as €20 million. The Irish Financial Services Regulatory Authority has ordered the bank to pay another €5 million in interest to those customers.

The Minister for Finance, Mr McCreevy, has amended new legislation, which is before the Dáil, to make it a crime for a financial institution to charge more for a service than what is approved by the Director of Consumer Affairs and IFSRA.

Mr Broderick said the IBOA welcomed the amendment but emphasised that any substantial fines or penalties must be targeted at the institution guilty of overcharging and not staff carrying out their duties as directed by management. "It is important to remember that those who profited from overcharging customers are not the ordinary staff working in the bank and under no circumstances should they be the people scapegoated from this process," he said.

Meanwhile, AIB executives have told investors that trading is very strong and that the trends for its Irish business have "never been so healthy". Addressing the Davy Irish Equity Conference in London, AIB said it would take the €25 million it will be forced to repay to customers "on the chin" and absorb it within its forecast profit growth.