Capital Markets

Mnuchin expected to be Trump’s Treasury secretary

Donald Trump has chosen Steven Mnuchin as his Treasury secretary, US media outlets reported on Tuesday, positioning the former Goldman Sachs banker to be the latest Wall Street veteran to receive a top administration post. Mr Mnuchin chairs both Dune Capital Management and Dune Entertainment Partners and has been a longtime business associate of Mr […]

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Financial system more vulnerable after Trump victory, says BoE

The US election outcome has “reinforced existing vulnerabilities” in the financial system, the Bank of England has warned, adding that the outlook for financial stability in the UK remains challenging. The BoE said on Wednesday that vulnerabilities that were already considered “elevated” have worsened since its last report on financial stability in July, in the […]

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Zoopla wins back customers from online property rival

Zoopla chief executive Alex Chesterman has branded rival OnTheMarket “a failed experiment”, and said that his property site was winning back customers at a record rate. OnTheMarket was set up last year, aiming to compete with Zoopla and Rightmove, the UK’s two biggest property portals. It allowed estate agents to list their properties more cheaply […]

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Hard-hit online lender CAN Capital makes executive changes

The biggest online lender to small businesses in the US has pulled down the shutters and put its top managers on a leave of absence, in the latest blow to an industry grappling with mounting fears over credit quality. Atlanta-based CAN Capital said on Tuesday that it had replaced a trio of senior executives, after […]

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BoE stress tests: all you need to know

The Bank of England has released the results of its latest round of its annual banking stress tests and its semi-annual financial stability report this morning. Used to measure the resilience of a bank’s balance sheet in adverse scenarios, the stress tests measured the impact of a severe slowdown in Chinese growth, a global recession […]

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Categorized | Banks

Ulster Bank to pay €35m over IT glitch

Posted on August 31, 2012

Ulster Bank customers affected by a month-long computer systems failure have been offered a compensation payment of €25, under package expected to cost the bank €35m in total.

The bank, which is owned by Royal Bank of Scotland, also said that it would waive certain fees and interest charges for three months – and, from Monday, will start reimbursing “reasonable” out of pocket expenses incurred by customers as a result of the IT glitch.

    Millions of the banks’ customers were plunged into chaos in June when an upgrade to the technology used to process day-to-day payments at RBS malfunctioned.

    The IT failure meant the balances of millions of customers were not updated, leaving them unable to meet payments or make purchases, with many incurring extra charges as a result. Within a few days, the banking group had a backlog of 100m unprocessed payments.

    But while processes were restored within days for the vast majority of the 3.5m RBS and 11.5m NatWest customers, hundreds of thousands of Ulster Bank’s 1.9m customers continued to experience problems for another month – and some customers are still complaining of delays today.

    This longer delay for Ulster Bank customers came as a result of the systems relying in part on functions at NatWest. As the NatWest systems had to be fixed first, a more severe backlog of transactions developed at the Irish bank.

    RBS has put aside £125m across the group to pay compensation to customers hit by the glitch, of which €35m has been designated to customers of Ulster Bank. However, analysts say the total compensation cost is likely to be millions more.

    “We recognise that we have work to do to restore our customers’ trust in us and we believe that this is the first step in that direction,” said Jim Brown, chief executive of Ulster Bank.

    Under the compensation package, the Irish bank said it would start processing claims from Monday for reasonable out of pocket expenses incurred by those who had to visit branches more frequently than usual between June 19 and July 18. It said it would also pay an additional 20 per cent on top of these expenses – up to a maximum of €120 – to personal and small business customers.

    It has asked customers to support their claims with paperwork such as phone bills, bus tickets, travel receipts, bills or invoices. The bank has already started to refund any fees, charges and interest that customers may have incurred as a result of the payment problems.

    However, Ulster Bank account holders have flocked to the social networking site Twitter to complain about the compensation offered. One customer said that she was experiencing more problems with her account on Friday and, despite three phone calls, had not received a response.