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technical glitch

Ulster Bank compensation: the details

Many customers have already received a €25 payment as part of a wider restitution package.

ULSTER BANK CUSTOMERS who were forced to visit a branch more often to access their current accounts during the summer months because of technical problems within the group are to receive a one-off payment of €25.

The bank said the compensation was “in recognition of the inconvenience” caused by the so-called technical glitch which affected about 600,000 customers between 19 June and the start of August.

Ulster Bank said it will make the payment to those who visited the bank more frequently between 19 June and 18 July than in the previous corresponding period of 19 May to 18 June.

For customers with a savings account, an automatic but one-off payment, equating to an additional rate for 3 months of 0.06 per cent Gross, 0.25 per cent AER (fixed) on the average daily balance between 1 September and 30 November 2012, will be made.

The bank has also promised to reimburse customers who have incurred “reasonable out-of-pocket expenses” as a result of the incident. Claims will be processed from 3 September with the bank offering to pay an additional 20 per cent up to a maximum of €120. Original paperwork, such as phone bills, bus tickets, travel receipts, bills and invoices, will be required to back up claims.

As part of its package, Ulster Bank said it wants to recognise the inconvenience caused and as another measure of goodwill will waive certain fees, charges and surcharge interest over a three-month-period. It has also made a commitment not to introduce account maintenance fees for all current account customers until July next year.

Ulster Bank also added that it was working with credit reference agencies to ensure that no customer’s ratings have been permanently affected as a result of the technical issues. Credit reports will be issued by local branches on request and free of charge.

If a current account holder has not incurred any out-of-pocket expenses and does not qualify for the €25 payment but feels they have suffered as a result of the summer problems, they have been encouraged to speak to a member of staff at their local branch or call the helpline.

Ulster Bank has already started to refund all fees, charges and debit interest that may have been charged in error. It is also correcting any credit interest owed to personal, SME and corporate customers’ accounts. It expects the adjustments to be completed by the end of October.

Customers of other banks

For non-Ulster Bank customers, fees, charges or interest that were incurred as a result of the incident will either not be applied or will be refunded directly by their own bank, where identified.

Customers who want to seek reimbursement for expenses have been told to contact their own banks, which will use their usual complaint handling policies and procedures to investigate and respond.

CEO Jim Brown apologised to customers again and thanked people for their patience.

“We recognise that we have work to do to restore our customers’ trust in us and we believe that this is the first step in that direction,” he said.

A provision of €35.5 million has been made by Ulster Bank’s parent group RBS in its latest accounts but the company expects to incur further expenses because of the “scale of the impact” of the incident.

Were you affected by the Ulster Bank technical glitch? Are you happy with the compensation package? Let us know in the comments section.

Earlier: Ulster Bank compensation scheme expected today

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