A second customer of Bank of Scotland Ireland claims he has suffered financially as a result of his dealings with an employee at the bank who had links with a property developer.
The customer says he was introduced to the property developer by the bank employee. The customer bought property from the developer with a loan from the bank.
The customer discovered the property was worth €300,000 less than he paid for it within six months of the transaction. He now intends to take legal action.
Earlier it emerged that Bank of Scotland Ireland is facing High Court action from a customer accusing the financial institution of negligence. The claim relates to a manager in the bank's lending section who has since left the bank.
In 2003 a customer of Bank of Scotland Ireland contacted the bank to take out a loan to invest in property development. The bank agreed to lend him €400,000.
The customer alleges a manager in the bank then offered to set up a meeting with a property developer so the customer could be offered a project in which he could invest his money.
It has emerged that this bank employee had links to the property developer. In fact land registry documents show they jointly owned property .
In a side deal the developer agreed that if the customer invested €400,000 he could double his money within a year .
But the bank customer alleges that three years on he has only been repaid just over €70,000 and is left with a substantial debt to the bank.
The bank official involved has now left the bank. The customer is also taking legal action against the developer.
