Bank of Ireland has said it will be reviewing its procedures for issuing credit references after a court ruled on Wednesday that it would have to pay part of the rent arrears of a customer for whom it vouched.

A spokesman said that, as was usual when a legal judgment went against the bank, it would look at the decision-making steps involved. Bank of Ireland was ordered by Judge Raymond Groarke to pay £1,300 of the £4,000 rent arrears of Ms Elaine Corrigan, a businesswoman, whom it described in 1992 as a respectable and trustworthy party who met her commitments.

The bank spokesman said that the rules for drawing up credit references had since changed and the whole process was considerably more formal and systematic than it might have been in the past.

Mr Fintan McNamara, of the Irish Property Owners Association, welcomed the court decision, saying that, on principle, it was good that referees were made accountable.

"It seems to me that it will be harder for people to get references in the future if the referees are taken to task in this way," he said.