John Dunne, Workers Party of Ireland spokesperson on consumer affairs, has labelled the decision of NIB to hike mortgage interest rates despite a reduction in ECB rates as downright insulting.

Mr Dunnes said:"This action shows the total arrogance of the banking sector and shows the remoteness of the banking elite from the lives of their customers.

"Mortgage holders all over the country are struggling with massive debt and negative equity arising out of a crisis largely fuelled by the excesses of the banking sector. Last weekend, arising from a decision of the ECB, they had looked forward to some relief in their monthly repayments. Now, not only has that hope not turned to reality, but NIB customers have had a knife stuck in their backs in the form of an interest rate hike effective in two days time.

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"What is the role of the regulator and the Irish Central Bank in this mess? Surely one of their objectives is to ensure that banks treat their customers fairly. Why are they not insisting on enforcing this – and if they have not the power to so do then we must ask what is the point of all this so-called regulation.

"For far too long the banks have ridden rough-shod over the rights of individuals and the rights of society. NIB was part of the gold-rush by banks during the so-called Celtic tiger era. The avarice and arrogance of that era cannot be allowed to continue and, if needs be, legislation should be immediately introduced in the Dáil to ensure that the regulator has the power to dictate interest rates in the interest of the customer."

(CD)