Ulster Bank and KBC exit - what will happen to my account?
The mass switching of bank accounts has caused serious concerns due to the wider disruption that could be caused to the banking sector.
Ulster Bank and KBC are both in the process of writing to customers as the banks continue in their preparations to leave the Irish banking system.
The exit of both banks from the Irish market will mean that over 570,000 accounts will need to be switched to different financial institutions.
The mass switching of bank accounts has caused serious concerns due to the wider disruption that could be caused to the banking sector.
Both KBC and Ulster Bank are giving customers six months’ notice to switch their current account providers.
Ulster Bank began writing to its customers in April informing them that they have six months to change account provider before their account will be closed.
KBC started writing to its customers on 1 June, and they will have six months from the receipt of the letter to close their account. KBC says these letters will be rolled out throughout the year and into 2023.
If you haven't already received a letter from your bank, you should still start to think about various options for your new current account. Switching earlier can help you avoid the possible rush of customers who may be attempting to open an account at the last minute.
Bank of Ireland is set to confirm a deal to take over the deposits for KBC savings accounts. If this deal is approved by the Competition and Consumer Protection Centre (CCPC), customers with savings accounts with KBC will have their savings transferred to the Bank of Ireland.
However, Ulster Bank customers with savings accounts will be required to close their account within six months of receiving a letter from Ulster Bank.
The first step is choosing a new bank. You can use a number of comparison tools to find the account and provider that best suits your needs. Money tools from the CCPC offers a feature that allows you to compare various current accounts offered by banks.
When you decide to switch, you can either manage the switch yourself, or if your current and new provider supports it, you can use the Central Bank of Ireland switching code. The code is designed to make the process quicker and easier. However, not all current account providers use the code, it can't all be done online and a switch can fail if your account has too much activity on it.
With this in mind, it may be easier to open a current account online and then begin to transfer over your direct debits and standing orders yourself. Your bank can provide you with an outline of the payments on your account to help you to do this. Ensure you give yourself plenty of time for this to check that payments such as your mortgage and insurance payments are set up.
You will also need to update your employer, social welfare or anyone who pays money into your account yourself.
Many people will be able to set up a new current account online in 10 to 15 minutes. However, if you have a non-EU passport or you want to open a joint account you might be required to head into the bank branch.
Both Ulster Bank and KBC have stated that if you fail to switch your account by the end of the six months, your account along with your standing orders, direct debits and other payments will be frozen. The remaining funds in your account will be issued to you in a cheque sent via post.
Fraud warning Bank of Ireland has warned customers of the increased fraud risk due to the movement of hundreds of thousands of bank accounts. Consumers are likely to experience a greater level of scam calls, texts and emails.
“The current mass movement of customers between banks creates ideal conditions for criminals,” said Edel McDermott, Head of Group Fraud, Bank of Ireland.
Consumers are asked to independently verify any messages, calls or emails which request personal information or account details.
Customers who have outstanding mortgages with Ulster Bank or KBC will see their mortgages move to a new provider. Meanwhile, the CCPC cleared the acquisition of KBC loans by Bank of Ireland under a number of conditions.
The deal includes KBC’s performing loan assets including mortgages, commercial and consumer loans, along with a small number of non-performing mortgages.
If you have a personal loan with Ulster Bank, the bank will write to you in 2023 to confirm if it will be transferred to another provider.
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