Bank takes Brinks to court

BANK OF IRELAND has decided to take legal action against security firm Brinks Allied after the company ceased its cash-in-transit deliveries for the bank in a bitter row over who should compensate for stolen cash.

Last night, the bank claimed that cash supplies at 89 of its ATMs in Cork, Dublin and Waterford had been disrupted because of the row.

The bank said that last week Brinks Allied had written to it seeking to alter the terms of its contract to transport cash on behalf of the bank. It is understood that the changes would have transferred liability for losses of cash in robberies from the security firm to the bank.

Negotiations between Brinks Allied and Bank of Ireland broke down and the security firm ceased transporting cash in some areas. It has also disrupted some services for Irish Life and Permanent, which relied on the same cash delivery service. In some of its branches yesterday afternoon, withdrawals were limited to €1,000, and some ATMs were only dispensing €10 at a time.

AIB has also confirmed that Brinks Allied has withdrawn from cash-in-transit business. AIB said that disruption was minimal.

The Bank of Ireland said in response to the Brinks Allied action that it considered “this ultimatum from a key service provider to be unacceptable and clearly in breach of the current contracts”.

It said: “At all stages the Bank stated its willingness to meet and discuss operational issues and the current withdrawal of service is disappointing. As a result of this action, the Bank has no option but to seek an injunction restraining Brinks Allied from reneging on its contractual obligations during any negotiation.”