Business Irish

Friday 9 December 2016

Blundering BoI does it again

Bank tells overdraft holders they owe more than they actually do

Published 28/07/2010 | 05:00

BLUNDERING Bank of Ireland was forced to admit yesterday that it has sent letters to customers with overdrafts saying they owe more money to the bank than they actually do.

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The bank wrote to customers telling them how much was outstanding on their overdrafts, but it left out the decimal point when it listed the amount owed. This meant someone who has a balance of €21.00 on their overdraft was told they owed €2100.

A spokeswoman for the bank said it apologised and was in the process of issuing the correct letters.

Under law, banks are required to notify customers who exceed their agreed overdraft amount.

The letters were sent to customers who exceeded their overdraft limits for 30 days or more.

Overdrafts are among the most expensive products offered by banks. Bank of Ireland charges €25 to set up an overdraft facility and charges interest of 14.8pc for an authorised overdraft, and a surcharge of 7.2pc for exceeding the overdraft limit.

This mistake is the latest in a list of blunders by Bank of Ireland. Last week it was forced to admit that it was refunding €3m to 43,000 bank customers who were owed money after withdrawing cash from ATMs but forgetting to take the money out of the machine.

Refunded

Some €1.3m will be refunded to 14,000 customers, while a total of €1.7m will be returned to 29,000 customers of other banks who used Bank of Ireland ATMs. The average refund is €93.

Last September the bank had to refund 120,000 customers after they were double charged when they used their Laser debit cards.

Customers who used their Laser debit cards to pay for goods and services found that their accounts had been mistakenly debited twice each time they used the card for a transaction.

Last night the bank would not reveal the number of customers impacted or put a value on this latest mistake.

Asked if it had a problem with overcharging, a spokeswoman said: "Yes, we went public last week with our refund of €3m and this error is very unfortunate in terms of timing for us but our primary concern right now is getting correct letters out to our customers with our sincere apologies.

"This is not evidence of a systemic problem."

Irish Independent

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