Madam, – The decision of the Bank of Ireland to levy new bank charges on less well-off account holders is indefensible (“Consumer groups criticise decision to overhaul BoI free-banking scheme,” December 23rd). The Credit Institutions Financial Support Act of 2008, on the face of it, does not allow it. The Statutory Instrument (No 411 of 2008) which implements the Act states: “A covered institution shall not pass on the costs of the guarantee to its customers in an unwarranted manner.” Yet, this is what the bank proposes to do on February 21st next when those customers with less than €3,000 in their accounts at all times will face new charges.
Bank of Ireland, like other publicly guaranteed banks, is obliged under the terms of the 2008 Statutory Instrument to engage “in the promotion of financial inclusion”. It is far from clear how these new transaction charges serve to encourage the unbanked population to use a publicly supported banking group which flagrantly propels its customers into two classes: the haves and the have-nots.
– Yours, etc,