Explainer: KBC extends account closure notice — how will this impact my banking?
KBC Ireland announced it will be extending the notice period for the closure of current accounts from 90 days to six months. But what does that mean for account holders? Picture: Sam Boal / RollingNews.ie
KBC Ireland has announced it will be extending the notice period for the closure of current accounts from 90 days to six months.
The Belgian financial giant said it will start sending out the first batch of account closure notification letters to customers in June, with the letters being issued on a rolling basis over the course of the remainder of this year and into early 2023.
This comes as Ulster Bank announced it is also giving customers six months to move their accounts and comes days after the Central Bank told banks that they need to do more to ensure switching customers are catered for.
KBC first entered the Irish market in 1978, and by the end of 2020 had accumulated 320,000 customers. It also has 12 hubs around the country with 1,260 employees. Early last year it announced KBC will be leaving the Irish market.
Here's what you need to know.
The announcement that KBC will be extending the time customers have to close their current account to six months, will allow additional time for people to switch their account or open a new account with a different provider.
KBC Bank has around 130,000 current accounts that are either active or have a balance, of which they estimate that 52,000 of these customers are expected to move providers.
Current accounts are not part of the transaction with Bank of Ireland and KBC will exit the Irish market irrespective of the outcome of the regulatory approvals process for the Bank of Ireland transaction.
Maintenance fees on current accounts will not be charged from the point at which we commence issuing notice to customers of their account closure and this means they will not incur any extra fees and charges for having two accounts open at once.
KBC has advised customers to continue banking as normal.
However, once you have been sent a letter by KBC Ireland notifying you of your account closure, you uhave six months from then to do so.
The bank has advised customers to start considering options for their new current account and reminded people they are free to close or switch their account at any time they wish to do so.
Customer overdrafts will also be closed as their current accounts close.
KBC previously announced these customers would be provided with 120 days' notice, however, this notice period is also extended to six months to reflect the fact that they may have to go through an application process with another provider.
Where a customer is not in a position to repay their overdraft KBC will work with customers on an individual solution appropriate to their circumstances. There are approximately 7,000 KBC customers with overdraft limits attached to their current accounts.
If you are a vulnerable customer, KBC is putting in place additional supports for more vulnerable customers and those who may need some extra assistance.
This comprises of additional outreach and communication, access to a dedicated phone line and dedicated vulnerable customer care team who are specifically trained to support customers who may be vulnerable. Vulnerable Customers can call 1800 804 472.
KBC says it is committed to keeping customers updated and will continue to communicate with customers well in advance of any changes to their current account.
KBC will provide reminders to customers during this period through a combination of letters, emails and SMS messages, saying "it is the bank’s intention that the closure of all accounts is managed in a careful and efficient manner keeping customers informed throughout."
