RBS slammed for offer of £20 compensation for IT meltdown

By DOMINIC JEFF
Published on 01/09/2012 00:00

Royal Bank of Scotland has been criticised for offering just £20 in compensation to some customers inconvenienced by the recent computer meltdown.

The bank said it will spend tens of millions more than the £28 million it has already set aside to compensate customers of its Irish subsidiary Ulster Bank.

It said yesterday that customers who had to travel to branches to get money or arrange payments would receive £20 each. It is also paying extra interest to savings account holders, offering three months free banking to paying customers and reimbursing charges incurred because of the problem with an extra 20 per cent on top, up to a maximum of £100.

The bank is inviting customers who suffered other inconvenience or expense to contact their local branch in order to seek redress.

It added: “Given the scale of the impact on our customers, we expect that there will be additional costs over the coming months as we continue putting things right.”

Ulster Bank boss Jim Brown said the measures would cost “tens of millions” more than previously thought. Brown and RBS chief executive Stephen Hester have already waived their bonuses for this year as a result of the fiasco.

But Mark Fielding, chief executive of small business group Isme, said it was not a victory for the consumer.

“It will cost small business owners more than the compensation to make a claim, to include bus tickets, phone bills and travel receipts,” he said.