Tag Archives | banks

Irish bank pulls fast one on client to try to lodge money to their current account

Do you have both a current account and a savings account (a demand or term deposit savings account) with one of the main Irish banks? If you do, read on. 

A ValueIreland reader write in earlier this week to share their experience of just how desperate the Irish banks (or one of them at least) are to get money locked away on long term deposit.

Our reader went into a branch recently to lodge a decent sized cheque to their current account in order to pay some bills.

They went in with their cash card and presented the cheque to be lodged as one would normally do. The reader thought it was strange that the receipt provided was manually made out rather than printed, but confirmed with the teller that the money was available immediately (both accounts were with the same bank).

Given assurances from the teller that the money was immediately available, further cheques were written and posted out.

And all of the cheques bounced.

When checked with AIB, the reader found that instead of lodging the money into their current account, the money was actually lodged into a term deposit account, locking the money away for months.

As the reader says:

I had a feeling something was up when they gave me a written receipt rather than a printed one, but  suppose I shouldn’t have been so trusting when they told me the money was definitely available in my current account immediately.

I had no inkling that they would even be able to lodge the money to another account since I provided them with my cash card linked to my current account.

It just shows the efforts they’d have gone to to use that information to track down if I had any other accounts and then lodge the money to an almost dormant term deposit account rather than to my current account.

When confronted, a different teller in the bank concerned denied any possibility of any wrong doing – insisting instead that the VI reader must have asked to lodge the money to the term deposit account rather than their current account.
However, in a damning indication that the bank knew their own wrong doing, they immediately took the money out of the term deposit account and put it back into the current account, refunded the bounced cheque fees, and tried to close off the matter.


For anyone familiar with term deposits nowadays, it’s nigh on impossible to get money out before the term ends, so in doing this immediately without any fuss, to me it just shows that the bank knew well they’d been caught out pulling a fast one on one of their clients.

Moral of the story – as usual, never trust your bank, particularly an Irish one. And secondly, when lodging money in the bank, make sure you check your receipt – printed or written – and make sure the money has ended up resting in the account that you expect.


Enterprise Ireland staff now working in the banks?

“OFFICIALS FROM Enterprise Ireland and other development agencies are to be sent into the commercial lending sections of the banks to ease and increase the flow of money to small and medium-sized businesses, Minister for Enterprise Mary Coughlan said at the British-Irish Parliamentary Assembly yesterday.”

Is anyone else out there even a little concerned about this proposal above? Surely there are data protection implications which should be governing third parties entering banks and working, even on a sort term basis.

What next? Will we have estate agents starting to work in the banks to help out with mortgage lending practices?

So far this story seems to have sneaked below the radar, as one might say, but I for one think it’s a ridiculous idea that’s too dangerous in its current guise, and in the precedent that it sets, to be allowed go ahead.


Sunday Independent Letter – Another day, another rip-off

An interesting development in how our financial institutions are treating their customers. This is a letter from todays Sunday Independent:

Sir — One of our financial institutions promotes itself with a nod towards the American gangster culture. But even the wise guys of this culture would balk at a shakedown scheme undertaken by Ireland’s banking community.

The shakedown is based on the financial institutions charging a documentation fee for any application for financial lending services.

As a recent victim of this shakedown I was charged €75.00 for the privilege of applying for/taking out a motor loan.

Even though I was the one that supplied all relevant documentation and the processing of same would be a standard procedure within any organisation taking on new business.

Despite their relentless campaign to entice customers with special offers the customer still is paying over the odds for using the Irish banking system.

Charging a person to make a loan application is nothing less than extortion. One more example of Ireland’s rip off culture.

I wonder who this bank is – anyone have any idea?


BOI Credit Interest account – too good to be true

Yet another bank proves the maxim that “if something sounds too good to be true, then it probably is”.

Bank Of Ireland today announced their “market leading” credit interest offer for current account holders. They’re offering a whopping 10.5% from October 15th. But, but, but, but:

  • If you’re a BOI account holder, you don’t get this automatically. You have to go ask for it.
  • You only get this interest rate until Feb 28th.
  • After that the rate goes down to 4%
  • The interest is only applied to the first €1500 in the current account

It all hardly seems worth it really, does it. If you are a BOI customer, you might as well apply for it to take some money back from them, but I can’t say that’d it’d be worth changing from your own bank.

Given that AIB and Halifax have offered this temporary high-interest current account previously, it’s likely that it won’t be long before the rest do as well.


1,372,200 Irish consumers overcharged by €111,743,000

In 3 years, that’s the sum total of the cost and scale of overcharging admitted by Irish business. You should check out the details on our website where we detail every overcharging confession.

Just to show the sort of companies involved, check out the table here. How many of these companies do you deal with on a regular basis? How often do you check the bills or invoices, or receipts they provide you.

Given what these companies have admitted doing, don’t you think you should keep an eye on what they’re charging you and how much money you’re actually giving them.


No interest in current accounts any more

I wonder is the step announced today by First Direct today a sign of things to come. As detailed here on the Motley Fool, they will no longer be paying any interest on their current accounts. Not that they paid much in the first place, 0.10% on one account, and 2.00% on the other.

As I wrote about previously, Halifax are making a big deal about their offer of 10% on current account in credit, though they have fairly ridiculous and restrictive provisions on the account. Though, not as ridiculous and restrictive as the AIB account highlighted by the anonymous poster in response.

The AIB account requires that you lodge €1500 monthly to earn the 11% interest, but you can only have a maximum balance of €1500 during the month. So, while trying to attract you by the 11% interest, they will hold you and then only pay you 4% from January 1st 2008, while all the time forcing you to spend all your lodged money by the end of each month – assuming the regular lodgement is your salary. Stay away from this product!


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