Niall McGovern bought an £8,000 bank draft from Permanent TSB in Carlow, assuming it would be the safest way of paying off his sterling Visa card issued by MBNA in the UK. Although the 12,100 cost of the payment left his account on 11 October, the money has hit his credit card account only in recent days. In the meantime, MBNA blocked his card and hired a debt collection agency to track down the money he owed.

McGovern says the Carlow branch ignored the problem until he went over their heads and complained to group chief executive David Went. The bank then offered him 1,000 in compensation and promised to pick up the cost of the considerable interest and late payment charges imposed by MBNA. But McGovern says the gesture is too little too late.

"I go away every year at Christmas, " he said, but couldn't this year because his credit card was deactivated.

"It's been a huge inconvenience that should never have happened. A cheque for 1,000 won't make up for what they've put me through."

Permanent TSB blames the bounced payment on Citibank, which operates its sterling bank account in the UK. "For some technical reason, Citibank refused to honour the draft and it was returned, " said a Permanent TSB spokesman. "We did not refuse to honour the customer's cheque; it was the bank's cheque that was not honoured by Citibank."

However, Permanent TSB does admit that it dawdled over the problem. According to the spokesman: "It does appear that the initial query from the customer was not acted upon as quickly as it should have been and we have acknowledged that and taken it up with the branch."

McGovern is still baffled by the bank's laid-back response to an urgent financial problem. "I couldn't believe the casual nature of the branch staff, " he says.

"They've treated the whole thing like a hot potato, passing it around to see who'd take it. Writing to David Went was the only way of sparking any reaction from them."