Bank of Ireland to give more time to clear overdrafts from IT glitch

DUBLIN (Reuters) – Bank of Ireland will give customers a further three months to clear unauthorised overdrafts built up overnight when they were able to withdraw funds above what was in their accounts due to a technical outage.

The glitch with the bank’s online app last month had allowed customers with low balances or no money in their account to transfer funds into a linked account with a digital banking app that could be withdrawn via an ATM.

Social media posts about the problem prompted late night queues at some ATMs before the bank, Ireland’s largest by assets, said the issue had been fixed the following morning.

Affected customers were offered temporary fee-free 90-day overdrafts and a senior executive at the bank said on Wednesday that it is looking to turn that into a further 90-day interest-free loan for those yet to clear the balances.

Bank of Ireland has contacted every impacted customer by letter and a significant number have spoken to the bank, Retail Ireland division head Susan Russell told an Irish parliamentary committee.

(Reporting by Padraic Halpin; Editing by Alexandra Hudson)