Ulster Bank announces compensation for IT errors

| August 31, 2012 | 0 Comments
Ulster Bank announces compensation for IT errors

Ulster Bank has revealed details of a scheme to compensate customers who were left out-of-pocket following a major IT failure earlier this summer.

The problem started on 19 June following a software update by parent company Royal Bank of Scotland which left thousands of customers without access to their accounts.

Transactions were disrupted for NatWest and Ulster Bank customer, with the problems lasting well into July.

Ulster Bank was still experiencing problems ten weeks after the problem started and almost half of its 1.1 million customers were affected.

It has now promised to reimburse all “reasonable out-of-pocket expenses” resulting from the error.

Any charges placed on customers’ accounts in error will be refunded, and customers who visited the bank between 19 June and 18 July to make a transaction will receive £20 in compensation for the inconvenience caused.

Customers who were inconvenienced by the online banking failure, but did not visit the bank between these two dates, should contact their local branch to discuss the issue.

Commenting on the compensations scheme, Jim Brown, the chief executive of Ulster Bank, said: “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.

“We have worked with our key stakeholders to ensure the additional measures which we are taking provide a comprehensive response to customer concerns and demonstrate our commitment to making amends.”

In response to criticism that the compensation is too little, too late, Mr Brown said: “I’m happy with it. I think it goes far enough.”

The bank initially set aside 35 million euro for compensation, but the bill is now expected to be double this amount.

Meanwhile Barclays’ new chief executive has promised to change the culture at the bank, following recent mis-selling and Libor-rigging scandals.

Antony Jenkins, who replaces Bob Diamond who resigned over the Libor-rigging scandal, said his first job was to stabilise the organisation.

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