A local racehorse trainer is reported to be happy with a substantial six-figure sum in damages that he received from AIB in settlement of a High Court legal action he took against the bank for overcharging on his account from 1986 to 1998.
Carlow trainer Jim Bolger commenced the legal action against the bank six years ago, after he discovered overcharging on his AIB account in 1998. Both parties reached a settlement on Tuesday before a full hearing of the case at the High Court in Trim, Co Meath.
A spokesman for the Coolcullen-based trainer stated, “Mr Bolger is pleased to have received a substantial six-figure sum in damages from AIB in relation to the case.”
AIB didn’t comment on the case, however, it is believed that the bank has agreed to pay Mr Bolger over €320,000 in damages to compensate him for the losses which arose from the overcharging.
Following its discovery in 1998, Mr Bolger hired consultants to carry out an extensive audit of his account to establish the full extent of overcharging on his account.
During the audit, the consultants found that a limit on his loan account had lapsed, leading the bank to levy surcharge interest, at a rate of 6 per cent per annum, in addition to the normal interest rate on the loan, over several months between 1987 and 1993.
The audit also uncovered overcharging on the trainer's current account between 1986 and 1998. It is understood that Mr Bolger had not been informed by the bank, that surcharge interest was applied on the overdraft on his current account over the 12-year period.
AIB had intended to defend itself against the claims, believing that Mr Bolger had been informed about the surcharge interest on his account. Various filings had also been made in the case over the last six years. However, the bank decided to settle the case before Tuesday’s full hearing.
