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Irish Banks Standing Committee,
Bank of Ireland,
Dublin 2.
2nd December 1968.
Eric A. Plunkett, Esq.
Secretary,
The Incorporated Law Society of Ireland,
Solicitors Buildings,
Four Courts,
Dublin 7.
Bank Giro
Dear Sir,
I have received your letter dated 22nd instant
in the above matter. With regard to the points
raised therein I should like to explain that the
Bank Giro promotion is an effort by the banks to
establish a simple and efficient money
transfer
service for the benefit of the community. It is
appreciated that Bank Giro may create certain
difficulties
initially for some accounting proce
dures, but it is hoped that through consultation
with the banks at local level such problems as do
arise can be avoided or overcome.
The particular service which is causing concern
to some members of your Society is not new, but
has been in operation since 1961 under the title
of the Credit Transfer System. Incorporating it
under the new name of "Bank Giro" has not
changed the old procedure.
I might point out that if a debtor is to make
direct payments to the account of his creditor,
the former must know the name of the latters
bank, and this information is normally not avail
able unless the creditor provides it on his invoices
or requests for payment. I would suggest that the
absence of this information together with an indi
cation
that Giro payments are not acceptable
should effectively discourage the use of the system
if this is the wish of the creditor.
It is obvious to us, however, that there is a large
percentage of debtors and creditors who are
anxious to avail of this system and our action in
promoting it is designed to meet this desire and
provide for Irish bank customers the same service
and facilities which are already available in prac
tically every other European country today.
I hope that your members will understand that
in trying to keep abreast of modern requirements
and up to date methods my committee are most
anxious to ensure that inconvenience to any sec
tion of the community is avoided. I believe, how
ever, that any difficulties which your members
may envisage or experience can be satisfactorily
resolved if they are brought to the notice of the
individual banks concerned.
Yours faithfully,
R. F. BRENNAN
Secretary.
Incorporated Law Society of Ireland,
4th December 1968.
To: The Secretary,
Irish Banks Standing Committee,
Bank of Ireland,
College Green,
Dublin 2.
Bank Giro
Dear Sir,
I refer to correspondence on this matter and to
my subsequent telephone conversation with your
Mr. Black. Apart from the matters already raised
in my correspondence with the Bank of Ireland
there appears to be a further difficulty.
Even assuming that a solicitor instructs his bank
not to accept payments into his personal or office
or client bank accounts through the Giro pay
ments might still be made by a debtor direct into
the account of a client of the solicitor who had
instructed the solicitor to institute proceedings for
a debt against that debtor. If a payment were
made by the debtor direct into the customer's
account and if the customer were not aware of it
proceedings might be instituted by the solicitor
quite innocently for a non-existent debt or for a
sum in excess of the amount due to the client.
It would seem that this is a matter which de
serves your consideration.
Yours faithfully,
ERIC A. PLUNKETT.
Secretary.
Irish Banks Standing Committee,
Bank of Ireland,
Dublin 2.
6th December 1968.
To: Secretary,
Incorporated Law Society of Ireland,
Four Courts, Dublin 7.
Bank Giro
Dear Sir,
I have your letter of the 4th December bringing
to my attention a possibility which,
in your
opinion, deserves the consideration of my com
mittee.
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