Bank still working on compensation

Wed, Jul 11, 2012, 01:00

ULSTER BANK has yet to finalise details of a comprehensive compensation package for customers denied access to funds after a major system failure at the bank.

The bank’s parent company, Royal Bank of Scotland, has, however, been able to announce details of the compensation package for UK account holders.

Ulster Bank’s chief executive Jim Brown told an Oireachtas hearing last week that details of compensation to be offered, in addition to covering any out-of-pocket costs incurred by customers, would be decided by the bank over the weekend and announced early this week.

However last night the bank said it remained “committed to finalising our plans for remediation in the coming days”. RBS has been able to outline its compensation plan and it does not seem likely significant compensation will automatically be offered.

Under the RBS scheme, affected customers of both that bank and NatWest as well as other customers of UK banks negatively impacted by the IT collapse will be only covered for unfair penalty charges, lost interest payments, credit file corrections and reinstatement of ISA allowances in addition to other measures.

They will not, however, be automatically compensated for inconvenience and distress. Customers left dissatisfied by the bank’s initial response can take complaints to the financial ombudsman.

One of the few elements RBS is offering on top of customers’ costs is a free credit check for people worried their credit rating may have been damaged due to their inability to pay bills. A credit check with the Irish Credit Bureau costs €6.