IRBC liquidators will repay €100m in over-charged interest
THE special liquidators of Irish Bank Resolution Corporation (IBRC) have secured court orders approving a process to govern their planned repayment of an estimated €100m in overcharged interest by the former Anglo Irish Bank.
The orders were sought arising from a High Court finding of 2011 that the bank had overcharged a businessman, John Morrissey, of Palmerston Road, Ranelagh, Dublin, €143,676 in interest on an overall sum of some €31.6m allegedly owed to it.
The High Court found the overcharging arose from the bank's mis-interpretation of the terms and conditions that were common to the vast majority of its commercial loans.
The liquidators took legal advice following that judgment and were advised that borrowers who were overcharged interest were entitled to have claims corresponding to the overcharged amount admitted in the special liquidation of the bank.
It has found 6,435 borrowers and 15,571 accounts were affected.
Based on the team's work to date, it is estimated the potential total refund could be about €100m, Kieran Wallace, joint special liquidator, said in court documents.
In those circumstances, Michael Collins SC, for Mr Wallace, applied at the Commercial Court on Monday to Mr Justice Brian McGovern to approve directions for the remediation process.
The directions will make it easier to pay out claims without the individual examination of files.