Tuesday 17 October 2017

Bank manager accused of applying higher interest rate to parents' €100k savings account

Clodagh Kinsella is accused of applying a higher rate of interest to her parents’ savings account. Photo: Collins
Clodagh Kinsella is accused of applying a higher rate of interest to her parents’ savings account. Photo: Collins

Tim Healy

A bank manager accused by her employer of applying a substantially higher than normal interest rate to a €100,000 savings account held by her parents has failed in a legal challenge to her suspension.

Ulster Bank claimed that at one point it was believed up to 10 times the correct rate was obtained by Clodagh Kinsella's parents on the deposit account with their life savings.

Ms Kinsella, of Collegewood Park, Clane, Co Kildare, was suspended on full pay from her position as a manager with Ulster Bank in May 2015 to allow an investigation be carried out, the High Court heard.

She was told the process would be done as quickly as possible and she would be kept updated, but says she never was.

It was a year later, in May 2016, before she was notified she would face disciplinary action alleging that between 2008 and 2014, she directly or indirectly instructed the bank's Capital Market Unit to apply a substantially higher interest rate to her parents' Ulster Bank account.

The bank claimed Ms Kinsella failed to adhere to instructions that staff should avoid financial conflicts of interests.

In seeking an injunction stopping her suspension and the disciplinary process, she claimed the investigation was taking too long and was suffering stress. She also claimed she was suffering reputational damage.

Rejecting her application, Mr Justice Paul Gilligan said Ms Kinsella had not met the necessary threshold for the strong case principle that the investigation process was sufficiently flawed.

Irish Independent

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