From June 16 Pepper will handle all day-to-day management of the loans from customer service through to specialised case management.
Danske Bank’s Peter Hughes, said that they had written to their customers to inform them that none of their terms or conditions would change as a result.
Mr Hughes, head of the bank’s non core unit, said: “In line with our earlier announcement to withdraw from personal banking in Ireland, we sought to identify a suitable partner to provide ongoing day-to-day servicing for our mortgage and personal loan customers.
“The team at Pepper have a strong track record in the provision of this type of servicing and we believe they can best match the needs of the bank and its customers at this time.
“In writing to customers we have reassured them that all terms and conditions applicable to their loan with Danske Bank are unchanged,” he said.
Pepper Asset Servicing has grown strongly since entering the Irish market in 2012. The company has announced that it will increase its head-count to 270 over the next year. It already has €8bn in assets under management.
Pepper’s chief executive in Ireland, Paul Doddrell, said that the appointment by Danske was a recognition of the company’s track record.
“This appointment is acknowledgement of Pepper’s expertise and experience in servicing third party portfolios and, in particular, our strong track record of excellent service delivery for both borrowers and lender,” he said.