The Irish Permanent, which tried to evict a Dublin couple, admitted in court yesterday it had overcharged them for two years and blamed "a systems failure" for the error.
The presiding judge commended the couple for taking on the bank, which he said was a powerful financial institution.
When Judge Raymond Groarke of the Circuit Civil Court asked if it was possible that the systems breakdown applied to every Irish Permanent account, counsel for the company said he had no instructions in that regard.
But a spokesman for the bank said last night the "systems failure" was a human error in an individual case. The system had been changed to ensure that such a mistake did not recur. The firm regretted what had occurred.
Mr Philip and Mrs Marie Eustace, St Maelruan's Park, Tallaght, are understood to have been overcharged by between £1,000 and £1,500. The money has now been deducted from the amount owed by them to Irish Permanent.
Details of the overcharging emerged during an application by the bank to possess the home of Mr and Mrs Eustace. Mr Gary Lee, of Brian Morton and Co, solicitors, said his firm had investigated the matter on behalf of Mr and Mrs Eustace and in documents issued by Irish Permanent he had noticed overcharging from 1996 until May 1998.
He had brought this to the attention of Irish Permanent, and in a fax of May 1998 the company had said it was a systems error. He said it had been charging a fixed rate of 9.5 per cent when the rates should have varied from 6.75 per cent to 7.5 per cent.
Judge Groarke said Mr and Mrs Eustace were to be complimented for not accepting the figures. The company had "grossly miscalculated" interest charges and sums due.
"This has come to light solely as a consequence of efforts by or on behalf of the defendants," he said. "Demands were made and proceedings instituted for sums of money which were in doubt."
He said the proceedings against Mr and Mrs Eustace could not succeed and dismissed the application with costs against the company.
