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Banking Operations

Dáil Éireann Debate, Tuesday - 11 December 2012

Tuesday, 11 December 2012

Questions (125, 128)

Pearse Doherty

Question:

125. Deputy Pearse Doherty asked the Minister for Finance the number of personal and or commercial loan accounts in Irish Bank Resolution Corporation, in which he is the shareholder of 100% of the shares, were found to have been charged interest rates in excess of those permitted by contractual arrangements between bank and customer and the amount of money and or credit that was refunded to such accounts in 2009, 2010 and 2011. [55094/12]

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Pearse Doherty

Question:

128. Deputy Pearse Doherty asked the Minister for Finance if the Irish Bank Resolution Corporation or its predecessor repossessed property and or appointed receivers to assets of any account holder who was charged interest rates in excess of those permitted by contractual arrangements between bank and customer. [55097/12]

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Written answers

I propose to take Questions Nos. 125 and 128 together.

I have been advised that it is not the practice of IBRC to disclose detailed information in relation to the dealings of any individual account holder with the Bank. However, the Bank has informed me that it previously disclosed that it had made a provision of €67m, following an internal review of historical interest rate setting procedures, as applied to certain loan accounts. This internal review, which was conducted in 2010, addressed the period from 1990 to 2005 to determine whether interest rates applied to customer loan accounts were consistent with the terms of the customer loan documentation. The Bank is nearing completion of this project and has made refunds to affected customers. The total cost of the refunds is now estimated at €45m to €50m.

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