You spot the prices, we ask the questions: One Dublin reader was dismayed to receive a letter from his bank last week telling him it intended to increase its overdraft fee from €15.20 to €25 a year.

The terse letter, from Bank of Ireland (which also advertised the increase in newspaper advertisements), contained no justification for the 65 per cent increase, writes Patrick Corley. He believes the bank is doing it "just because it can" and says this "poor value" is proof that it might be time to shop around for a new current account.

With profits topping €1 billion, how can Bank of Ireland justify such a huge jump increase in its overdraft fee?

It turns out that what looks to be a 65 per cent increase is, in fact, a slight decrease, according to the bank. It says that in 1998 it charged the equivalent of more than €25 but that, following a revision of its charges, the fee fell to €15.20.

Whether customers received the full benefit of this reduction following the "complex restructuring" is unclear. "Customers are getting good value," says a spokeswoman. "We are going back to pre-1998 levels in real terms. We would argue that it is good value within the market. We believe our charges are simple and transparent."

Bank of Ireland is also "in the business of making money for its shareholders", she says, before repeating that the institution offers "excellent value for money, and that is what our customers should be focused on".

Unfortunately, it may be harder than it should be for Patrick Corley to find a bank that he feels happy with. Only two weeks ago the Consumers' Association of Ireland said that the Irish banking industry had "sucked the juice" out of its customers because of its "restrictive" nature.

The association made its comments following the publication of a study that showed that AIB and Bank of Ireland were three times as profitable as other European banks in 2003, when AIB made pre-tax profits of €1.01 billion and Bank of Ireland made €1.13 billion.

What's more...

Hell's kitchen?
Maurice McCleary, a reader from Dublin, has been in touch to highlight what he says is the significant difference between the prices of flat-pack kitchens in B&Q stores in the Republic and Northern Ireland. He says that his local branch of the DIY chain tends to be 20 per cent more expensive for kitchen cabinets than B&Q in Newry, Co Down, even taking into the account the sterling-euro difference. If you notice a significant price increase or discrepancy, let us know by e-mailing pricewatch@irish-times.ie