Cash services to 89 Bank of Ireland ATMs and about 48 branches were disrupted yesterday following a dispute between cash-in-transit company Brinks Allied and the bank.
Bank of Ireland is expected to seek an injunction against Brinks Allied this morning after accusing the company of "reneging on its contractual obligations".
The dispute arose after Brinks Allied sought a significant change in its contract with Bank of Ireland. It is understood from sources that Brinks Allied has been seeking to substantially transfer liability for losses during robberies to the bank. The company is also thought to be seeking changes in its contracts with the banks to reflect the increased cost of security measures in transferring cash around the State.
Brinks Allied is responsible for cash deliveries to 48 of the bank's Dublin branches and about half its network of off-site ATMs.
Bank of Ireland claimed it received a letter seeking a change in the contract last Wednesday, and by Friday Brinks Allied said that unless the bank agreed to the changes service would be withdrawn.
The action began on Monday, said the bank, and was significantly stepped up yesterday.
A spokeswoman for the bank said around 20 of its ATMs situated at locations other than bank branches were already out of order as a result of the dispute.
"Bank of Ireland considers this ultimatum from a key service provider to be unacceptable and clearly in breach of the current contracts. At all stages the bank stated its willingness to meet and discuss operational issues, and the current withdrawal of service is disappointing."
A Brinks Allied statement last night said the company was "bitterly disappointed" with the response of the banks to the recent increased threat to the lives of its staff.
"Banks are viewing this entire issue in financial terms whereas the absolute priority for Brinks Allied is the safety of its staff and the protection of their livelihoods."
The company accused banks of "refusing to take any financial responsibility for the additional measures necessarily being introduced".
Bank of Ireland apologised to customers, and said it was working on "contingency arrangements" to reduce the disruption.
It is understood in some branches yesterday withdrawals were limited to €1,000 at a time and some ATMs were dispensing smaller denomination notes.