Ulster Bank Error - Interest Should Be Waived - Kelly

Local Minister Alan Kelly, has hit out at Ulster Bank following news that at least 1,300 of its customers will be demanded to pay back around €30,000 each, following another blunder by the bank, this time involving the under-charging of mortgage accounts. Minister Kelly believes the news is causing undue worry to many Tipperary customers.

Local Minister Alan Kelly, has hit out at Ulster Bank following news that at least 1,300 of its customers will be demanded to pay back around €30,000 each, following another blunder by the bank, this time involving the under-charging of mortgage accounts. Minister Kelly believes the news is causing undue worry to many Tipperary customers.

“I am most concerned but not surprised by the news that Ulster Bank, is yet again causing worry and concern to their customers, this time through their own mismanagement of mortgage accounts. The manner in which they have dealt so far with the issue demonstrates the clear disregard it has towards its customers,” stated Minister Kelly.

“Such customer mistreatment was also evident last June, when over 6,000 customers were affected due to its IT crisis. The lack of customer care was heightened by their subsequent inadequate compensation scheme, I fear local customers have lost faith in them,”

“It is worrying that the office of the Financial Services Ombudsman said this recent problem had not been brought to his attention, and that all those mortgage customers affected have yet to be notified.

“The question needs to be put to Ulster Bank as to how such an error could occur in the first instance and persist without detection for such a long period of time. Ulster Bank must provide a full explanation and ensure that those affected are treated in a fair manner.

“I believe that the onus always lies with a bank in calculating what money is due and to advise their customers of that amount on a monthly basis. Ulster Bank did not on this occasion, and now must take responsibility for this inherent failure. It is imperative that Ulster Bank does not gain any financial benefit by way of interest being accrued on the amounts due, following their mismanagement of the mortgage accounts.

“I am delighted the matter is being raised with the Central Bank and Financial services Ombudsman,” concluded Kelly.