The chief executive of a Kerry- based charity has denied his organisation was the victim of any systematic overcharging by AIB.

The charity, Kerry Parents and Friends Association, which provides support for those with intellectual disabilities and their families, has denied a newspaper report that it had to cut services because "loading" to its numerous accounts caused financial hardship.

Mr Tony Darmody, chief executive, said there was "no systematic" over-charging by AIB. Speaking to local media, he said: "None of our 12 centres had to close because of any issue between us and AIB," he said. Mr Darmody also denied his organisation had been €1.8 million in deficit.

The organisation which will be 30 years old next year has had a 20-year relationship with the bank. Its most recently opened centre is on Valentia Island, where Kerry footballer Mr Mick O'Connell, a long-term supporter of the organisation, and his wife Rosemary live.

A story in yesterday's Sunday Independent suggested that AIB made a €210,000 settlement to the charity after incorrectly charging various accounts over a seven-year period. The report claimed an AIB branch in Kerry had "loaded" numerous accounts without informing the client.

AIB yesterday rejected the allegations, although it declined to go into details. A spokeswoman said: "We enjoy good relations with our client. The allegations in the article are not true."