DUBLIN, Ireland - Bank of Ireland is allowing its customers to immediately apply for overdraft protection of up to €700 ($799 U.S.) through its ATMs.
According to a report in the Irish Times, customers pre-approved by the bank will be offered the overdraft protection when there are insufficient funds to meet a withdrawal request -- and will be able to complete the process in less than a minute.
Bank of Ireland said the monies were being offered as a "cushion" for certain customers who need extra cash.
The bank has mailed details of pre-approved loans to 60 percent of its customers, based on an analysis of their bank accounts rather than on applications from the customer. Those contacted by mail will also receive the offer at ATMs.
Customers will be asked to accept the terms and conditions attached to the overdraft, including the 13.5 per cent rate of interest charged and the normal ATM transaction fee. They will also agree to pay an annual overdraft facility fee of €15.20 ($17.36 U.S.)
The service will be available on Bank of Ireland ATMs at bank branches but not at machines located at retail outlets.
Bank of Ireland piloted the service for seven weeks during the summer, according to the Irish Times.
Of the customers who accepted the overdraft offer, 63 percent took less than 30 seconds to complete the ATM transaction and 90 percent took less than one minute.
Since overdrafts are among the most expensive type of credit offered by financial institutions, consumer groups and the Irish Financial Services Regulatory Authority are likely to closely monitor acceptance of the ATM-based application.
