Charlie Weston: Second bank admits dipping into savings of its customers
Published 03/07/2010 | 05:00
Bank of Ireland has become the second bank to admit that it dips into consumers' savings accounts in certain circumstances if payments are missed on loans or hire-purchase repayments.
AIB admitted to this newspaper recently that it engages in offsetting, or taking money from consumers' savings accounts when the consumer does not pay a loan. Other banks are known to do it, but haven't admitted the practice.
Bank of Ireland had initially denied to the Irish Independent that it engaged in offsetting.