AIB failed to reimburse €8m to 70,000 customers over ATM glitch

AIB failed to reimburse more than €8 million to 70,000 people whose accounts were debited for ATM withdrawals though they did not take the cash.

The bank yesterday confirmed that a problem with its anti-fraud measures lead to the “unsuccessful ATM cash transactions”.

The money was left behind at the ATMs between 2003 and 2010. AIB said it was now having to refund €5.1m relating to 41,000 transactions by it customers and €3.2m relating to 30,000 non-AIB customer withdrawals in the Republic.

A further €400,000 will be refunded to 5,800 First Trust customers in the North. The amounts the bank is refunding also include what it describes as “compensatory interest”.

Refunds were due to be lodged into the accounts of its customers by midnight last night, while First Trust customers will receive their reimbursement next week.

Customers of other banks who withdrew money from AIB ATMs may have to wait longer for their refunds. AIB said it had put process and procedural changes in place to prevent a recurrence of the glitch.

“AIB apologises for this error and is in the process of refunding all impacted cardholders,” it said.

“AIB is writing to AIB cardholders who have been impacted by this problem to inform them of the amount of their refund. In relation to customers of other banks, these banks will arrange for the AIB refunds to be credited to their own customers’ accounts.”

The bank said there was no need for those affected to take any action. AIB has set up a customer support desk to deal with customer queries: 0818 300 157.

There were 57m transactions from AIB’s 783 ATM machines in 2010, totalling €7.7 billion.

It is estimated money is left behind in one in every 3,000 ATM transactions. At some machines three people a day leave their money behind them.

Last July, Bank of Ireland confirmed it was to pay back €3m to customers who failed to take their money from its ATMs in a four-year period ending in October 2009.