The Kerry-based charity which recently received €210,000 from Allied Irish Banks after being overcharged for seven years today said they are still doing business with the bank.
The charity denied, in a strongly-worded statement, a claim that the charges caused severe hardship for the charity, leading to the closure of one of its services.
News of the "settlement" emerged in a Sunday Independentreport yesterday which said AIB had been hiding charges on accounts held by the Kerry Parents & Friends Association (KPFA) over a period of seven years.
The report said that because of the overcharging, the Killarney-based charity for the mentally handicapped sold assets and closed a facility to meet its financial committments.
The charity, which numbers GAA legend Mick O'Connell and former Kerry Group chairman Mr Denis Brosnan among its patrons, today strongly refuted the claim.
"The Association wishes to state clearly that it was not forced to close any of its services as a result of any dealings with AIB and that it did not and has not at any time sold off any assets in order to meet its financial commitments," the KPFA statement said.
"AIB has been the association's bankers since 1973 and as such has always supported and facilitated the association in its development of services including its capital development programme.
AIB continue to act as the association's Bankers and enjoy the complete confidence of the association," the statement added.
The overcharging was discovered following a recent audit by a Northern Ireland firm and an agreement to repay the money was arrived at in the past two weeks, according to the newspaper.
The charity operates facilities at four locations in Killarney, including five-day and seven-day community residences and raises funds through community lottery and other activity; and receives a grant form the Southern Health Board.
The bank has declined to comment on the matter.