Sunday 25 September 2016

Thousands of welfare payments delayed by BoI problem

Published 24/04/2015 | 02:30

The bank admitted there was a delay in processing payments, but insisted that everyone would get the money they were due by the close of business yesterday
The bank admitted there was a delay in processing payments, but insisted that everyone would get the money they were due by the close of business yesterday

Payments due to thousands of workers and people on social welfare have been delayed due to a Bank of Ireland problem.

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The bank admitted there was a delay in processing payments, but insisted that everyone would get the money they were due by the close of business yesterday.

Up to 65,000 people did not get money due from the Department of Social Protection on time, including 1,000 of their own staff.

Bank of Ireland confirmed that transactions were delayed.

"We acknowledge that some payments are being processed at a later time than customers anticipate," a spokesperson said.

But the bank insisted that any credits due would be processed on the same day.

Failure

It insisted there was no systems failure, and the slowdown in processing payments was due to the volume of transactions.

Despite the reassurances, the bank found itself on the receiving end of a Twitter storm from customers.

One customer tweeted: "Cheers for the lack of payment this morning... Kids had no lunch for school and I missed a job interview... Sound lads."

The Department of Education and Skills website explained to teachers that the delays in the payment of salaries were due to the bank.

"Personnel who are paid on the payroll operated by the Department of Education and Skills are experiencing delays with the lodgement of their salaries/pensions to their accounts with Bank of Ireland."

The department said it had been told by Bank of Ireland that it expected payments to be lodged into accounts later in the day.

The development comes after banks earlier warned that the May bank holiday on the Continent could case delays in processing wages.

Last May, thousands of people were left without wages after the May Day holiday on the Continent shut down interbank transactions in this country. May Day is not a bank holiday here.

The employees were left without wages, despite early warnings from banks that they would be unable to carry out banking transactions.

Banks have now warned employers and those who pay pensions that they need to submit payments by April 29 to ensure people are paid the next day.

The Irish Banking and Payments Federation said a failure to do this could mean people would not get their money until the first week in May.

"Because May 1 is a European bank holiday - although a normal banking day in Ireland - salaries and other payments due for payment on May 1 will need to be submitted by Wednesday, April 29, to ensure beneficiary accounts are credited on Thursday, April 30."

Irish Independent

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