AIB’s Mistake: Cancellation of Direct Debits for Ulster Bank Tracker Mortgages

A recent incident involving AIB, the bank that acquired a number of Ulster Bank tracker mortgage accounts, has caused inconvenience to former Ulster Bank customers. A few customers had their direct debits, which were supposed to pay their mortgages, unexpectedly cancelled. This blunder follows a previous one where AIB mistakenly informed customers that their monthly repayments would significantly increase. One customer detailed their experience, stating that despite reassurances that direct debits would “seamlessly transfer” to AIB, her payment did not go through. Furthermore, AIB failed to seek payment, leaving the customer frustrated and annoyed.

The customer was forced to contact AIB multiple times, only to receive conflicting information. While AIB claimed her payment had gone through, Bank of Ireland, where the customer holds her current account, confirmed that AIB had not presented any payment. Eventually, AIB admitted the mistake and informed affected customers that alternative repayment methods were available. However, this incident has left a stain on AIB’s reputation, especially given the previous error.

AIB has acknowledged the cancellation of direct debits for a small number of former Ulster Bank customers and assured that steps are being taken to rectify the situation. The bank emphasized that no customer will experience financial repercussions or damage to their credit rating due to the temporary delay in mortgage repayments caused by their error. AIB apologized for any concern caused by this issue.

This incident follows AIB’s previous mistake of incorrectly informing Ulster Bank customers about increased repayments. However, in response to public backlash and the exposure of their error, AIB apologized to customers and confirmed that no payment increases would occur, contrary to the letters sent to some customers.