asked the Minister for Finance if he is aware that Irish banks are charging customers interest on overdrafts held during the period of the recent bank strike; and if he condones this practice.
Ceisteanna—Questions. Oral Answers. - Bank Overdraft Interest.
25.
The Central Bank has informed me that it is satisfied that the associated banks are operating the arrangements which were to apply on cessation of the bank strike and which were published extensively in the national daily newspapers in August and September last. Those arrangements were made following detailed discussions between the Central Bank and the associated banks. In the case of loans and overdrafts the balances at end-June were used as a basis for calculating interest up to 22 September (the delayed value date).
The Central Bank and the associated banks were concerned to ensure that the arrangements would be such that not only would normal banking activity be resumed in the shortest possible time but also that they would have regard to equity as between different categories of customers and between customers and the banks. As the system adopted tended to favour the drawer of cheques rather than the recipient and to penalise those customers whose borrowings were abnormally high when the bank strike commenced, the banks undertook to consider the abatement or foregoing of interest in cases where the customer considered that the position at end-June did not reflect the normal operation of the account. Particular consideration was given to bridging loans, seasonal advances and term loans due for repayment during the strike where it was apparent that the customer had funds to effect such payment. I might add that interest on deposit accounts continued to accrue to the benefit of depositors during the banks closure and was calculated in the normal manner, and no fees were charged in respect of bank transactions from 29th June, 1976, the first day of closure, to 22nd September, the end of the delayed value dating system. It is apparent that in all the circumstances the most equitable and feasible arrangements were made to arrive at a balance between creditors and debtors.
If a customer is dissatisfied with the way his account has been treated, it is open to him to pursue the matter with his bank.