Alan Farrell (Dublin North, Fine Gael)
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8. To ask the Minister for Finance his views on the recent revelations that Anglo overcharged customers by €1.2bn; the amount overcharged to Irish customers between January 1990 and July 2004; and if he will make a statement on the matter. [43767/13]

Michael Noonan (Limerick City, Fine Gael)
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The Special Liquidators have confirmed that Irish Bank Resolution Corporation Limited (the “Bank”) identified in June 2010 that it had a customer overcharging issue (i.e. there had been a difference between the interest rate charged to customers and the interest rate documented in the corresponding loan facility agreements) on customer loan accounts in the Republic of Ireland, US, Isle of Man and UK jurisdictions. I have been advised by the Special Liquidators that in July 2010 the Bank established an internal steering committee to oversee a forensic investigation into the circumstances surrounding this overcharging issue and to ensure that affected customers were fully refunded the overcharge amount together with appropriate compensation.

The Steering Committee informed the appropriate Regulatory Authorities of the issue and these Authorities were updated on the progress of the internal investigation.

A report on the forensic investigation was delivered to the Board of the Bank, and the Regulatory Authorities in December 2010. It identified overcharging affecting the majority of variable rate customer loan accounts in ROI, the Isle of Man and the US in the period from 1st of January 1990 to 31st July 2004. It further identified that approximately 25% of variable rate customer loan accounts in the UK were overcharged in the period from 1st September 1991 to 30th June 2005.

Project teams within the Bank calculated the amount of interest overcharge and compensation for every affected customer. Refunds plus compensation cheques were made available to affected customers in ROI, the US, the Isle of Man and the UK by the end of Q1, 2012.

The Special Liquidators can confirm that the total amount overcharged to customers was €45m.