'Churning' standard at bank, says ex-employee

A FORMER employee of Ulster Bank accused of “churning” has claimed his behaviour was standard practice at the bank.

Conor Bowman, counsel for Liam Doyle, told the Employment Appeals Tribunal his behaviour was carried on by other staff “with the assent” and “at the request” of the bank. He claimed his client was constructively dismissed.

Mr Doyle began working for Ulster Bank in February 2004 as a financial planning manager. He sold pensions, life cover and investment policies to clients in the College Green branch in Dublin. He earned bonuses of €50,000 in 2006, the court was told. He resigned his position in September 2008 following suspension.

In March 2008, Mr Doyle was told there was an accusation of forgery against him, Mr Bowman said. He was told a client claimed he had forged the client’s signature on an application form. He was suspended on pay pending a fact-finding meeting.

The forgery element of the accusations against him “disappeared into thin air”, Mr Bowman said, but Mr Doyle was then accused of churning – that is, selling policies to people who didn’t need them to generate commission.

“Mr Doyle’s response was this was standard practice at Ulster Bank,” Mr Bowman said. “He was not engaged in a maverick action.”

He said he and other members of staff engaged in the practice “with the assent” and “at the request” of the bank. He claimed up to 15 other staff members at the same level were carrying on the same activities.

Mr Bowman said Mr Doyle sought his files and the files of some of his colleagues, but was refused. He was also told not to contact clients or staff.

Following the fact-finding meeting, Mr Doyle was summoned to a disciplinary hearing. Mr Bowman claimed its chairman made prejudicial remarks which left Mr Doyle in no doubt that the bank had made a decision to get rid of him “come hell or high water”. On legal advice, he withdrew from the hearing.

After an offer of a fresh hearing, Mr Doyle resigned. Mr Bowman said Mr Doyle was “railroaded” into resignation by the bank.

Counsel for Ulster Bank Rosemary Mallon said Ulster Bank never had and did not support any practice of churning.

“Any allegation of it is immediately investigated,” she said. She said an allegation of forgery had been made by a customer against Mr Doyle, but the bank was unable to contact him subsequently.

Proper disciplinary procedures were followed and there was no breach at any stage that would give Mr Doyle cause to resign, she said. He was offered a new disciplinary hearing but refused to attend.

“Had the claimant been unhappy with the outcome of the disciplinary process, he could have appealed,” Ms Mallon said.

She said Mr Doyle had many options besides resignation, but had decided to “simply walk away” and could not satisfy the test for constructive dismissal.

The case will continue in July.