AIB has denied it operated a one-sided policy when converting pounds to sterling in its Northern-based First Trust Visa accounts. An AIB customer complained that when the currency rate favoured the bank, adjustments were made; but when it favoured the customer, no allowance was made.
The Irish Times was provided with statements by a customer detailing how, during the summer of 1996, when sterling was weaker than the pound, the bank never credited the customer's account with the difference. However, when sterling was stronger than the pound, the bank converted the currency, profiting from the difference.
The credit card statements show that instead of converting pounds to sterling and crediting the exchange surplus to the account, payments appeared as if they had been made directly in sterling.
The customer subsequently wrote to the bank detailing one instance of non-conversion. First Trust replied thanking the account-holder for "highlighting the fact that no conversion of your Irish pound payment took place" and crediting the account with £5.00 "in respect of the aforementioned transaction".
Yesterday, AIB's head of media relations, Mr Turlough Crowe, said no evidence existed to suggest non-conversion had occurred on a widespread scale. "Having discussed this with people in different departments, I am assured that there is nothing wrong with the integrity of the system."
He added he was unaware of similar problems with other accounts and said non-conversion might have happened because of a technical fault in the account-holder's credit card.
According to the Ombudsman with responsibility for banking, Mr Gerry Murphy, there have been no widespread complaints of non-conversion.