KBC / Ulster Bank Withdrawal from Ireland – Consumer FAQ

Bank Switching

In 2021 KBC Bank and Ulster Bank announced their intentions to withdraw from the Irish market. This FAQ is designed to support KBC Bank and Ulster Bank customers seeking a new current account provider and also, in the case of Ulster Bank customers, a new deposit account provider.

Page last updated: 6 September 2022

What does the exit of KBC Bank and Ulster Bank mean for its customers?

Both KBC Bank and Ulster Bank are winding down and withdrawing their banking activities from Ireland. They have entered into transactions to transfer much of their business (e.g. mortgages and loans and in the case of KBC Bank, deposit accounts) directly to other providers without the need for customers to take any action.

However, if you have a current account with KBC Bank or a current or deposit account with Ulster Bank, the bank will close these accounts as part of its wind down.

If you need access to a bank account, you will need to take action to move your banking arrangements to another provider:

If you have an existing account with another provider you can opt to transfer your banking arrangements (including your funds, direct debits etc.) to that account; or

If you do not have an existing account with another provider or you do not wish to use any other account you have, you will need to open an account elsewhere and transfer your banking arrangements (including your funds) to that new account.

For example, you may need continued access to a bank account if you currently use your KBC Bank or Ulster Bank account to receive your salary, social welfare payment or other income, to save in, to hold or transfer your money into or out of, or to withdraw cash and make payments from.

If you don’t need continued access to a bank account – for example you do not use your account in KBC Bank or Ulster Bank and/or you have no funds in it and don’t plan to put any funds in – then you do not need to take any action. The withdrawing banks will close your account for you after they have provided notice.

I am a customer of KBC Bank or Ulster Bank. What do I have to do?

If you are an account holder with KBC Bank or Ulster Bank whose account will close, they will contact you at least six months before they propose closing the account to let you know when your account will be closed. They will also tell you what you will need to do to if you are moving your banking arrangements to another provider.

You do not have to wait for your bank to contact you. You can open a new account with any provider at any stage and give yourself more time to complete the process. Even if you choose to wait until you get a notification from Ulster Bank or KBC Bank, you may want to begin thinking about where you might move to.

When you receive a notification from KBC Bank or Ulster Bank, you are encouraged to start the process of moving banking arrangements as early as you can during the notice period to give plenty of time to make the necessary arrangements.

If you think you will have any difficulties in switching, or have any concerns, you should contact KBC Bank or Ulster Bank who have a duty to support you in making alternative banking arrangements.

I want to move my current account to another provider – how do I choose where to move?

You should consider what your needs are and which provider and product would be most suitable for you.

The Competition and Consumer Protection Commission (CCPC) website has an online comparison tool which will help you decide which provider suits you best for the product you require.

You can also visit each provider’s website to get more information on the types of accounts they offer, whether they are available online and/or in-branch (and the locations of any branches), availability of ATMs and any other services you may need.

My mortgage is with KBC Bank or Ulster Bank. Do I need to switch my mortgage?

No. Both KBC Bank and Ulster Bank plan to transfer their loans, including mortgages, to other providers. In that case, your mortgage or loan will transfer on your existing rate and with all of your existing consumer protections attached. You do not need to switch your mortgage unless you want to.

I have an overdraft or credit card with KBC Bank or Ulster Bank. What happens to this?

KBCI Bank credit cards will be transferred to Bank of Ireland Your credit card limit will remain the same.

If you currently have an overdraft with KBC Bank, or a credit card and overdraft with Ulster Bank, these will not transfer to your new provider when you move your banking arrangements.

Overdrafts
You will have to check that an overdraft facility is available on the account you chose and then apply for an overdraft separately to opening your account. Banks who are opening accounts for new customers will accept overdraft applications at the same time. To apply for an overdraft you will need to provide details for a credit assessment to your new provider. This may include recent payslips and bank statements from your KBC Bank or Ulster Bank current account.

There may be a waiting period while your application is assessed and your overdraft facility is set up. You may want to consider this to ensure you start the process with enough time to move to a new provider and ensure any overdraft you need can be put in place in time.

Credit card
If you require a credit card you will have to apply for this from a new provider (be that your new banking provider or another credit card provider). Similar to an overdraft, you will have to provide information for a credit assessment as part of your application. You may not be approved for the same credit card limit that you had with your old provider. There may also be a waiting period while your application is assessed, you may want to consider this to ensure you give yourself enough time to arrange a new credit card before you close your existing account.

Can I move my account using the Central Bank of Ireland’s Code of Conduct on the Switching of Payment Accounts?

The Code of Conduct on the Switching of Payment Accounts (Switching Code) is a set of rules that most providers, including the main retail banks, must follow when customers are moving their payment account (such as your current account) to another provider. When using the Switching Code, you must first have an account with another provider.

Using the Switching Code means that your existing provider will help you by notifying your new provider about active standing orders and direct debits (these are things like electricity, gas and oil suppliers, insurance companies, telephone and television providers etc.).

However, you will still need to take some actions yourself, for example:

If you have any recurring card transactions on your debit card such as payments for music streaming or gym membership. You will have to notify these companies of your new card details.

Notifying your employer and anyone else who pays money into your account, such as social welfare, of your new account details to make sure any future payments will go to your new bank account.

Your new provider will be able to help you with information about this and what you need to do based on your needs.

Do I have to use the Switching Code or can I move my services to a new provider myself?

You do not have to use the Switching Code process. You can open an account with a new provider at any stage and set up new standing orders and direct debits yourself (e.g. by contacting your electricity, gas and oil suppliers, insurance companies, telephone and television providers etc.). You can usually do this online. You will also need to contact anyone who makes payments into your account, for example your employer or social welfare, to advise them of your new account details to make sure any future payments go to your new bank account. You will also need to provide your new card details to any other companies where you have previously set up recurring card transactions on your debit card.

Your new provider will be able to help you with information about this and what you need to do based on your needs. Whether you choose to use the Switching Code process or not, providers must act in the best interests of both existing and potential customers.

Under the rules supervised by the Central Bank, both the exiting banks and remaining banks (and other financial institutions) are required to support customers in making arrangements to move their account. This is the case whether or not a customer chooses to use the specific switching process in the Switching Code or moves their account themselves.

Where can I go for help or support with moving my account?

KBC Bank customers can telephone 1800 93 92 44. KBC Bank customers who may need additional help or who need information in a different format due to a disability, health condition, or because their circumstances have changed can telephone 1800 804 472. KBC Bank branches remain open and you can visit them for assistance.

Ulster Bank customers can telephone 0818 210 260. Ulster Bank customers who may need additional help or who need information in a different format due to a disability, health condition, or because their circumstances have changed can telephone 1800 656 001. Ulster Bank branches remain open and you can visit them for assistance.

Both the CCPC and the Citizens Information Board are independent bodies who provide information to Irish citizens and consumers on their rights and entitlements. They have helpful and practical information on their websites about switching and practical advice about what to do.

What can I do if I am not happy with the service I have received from my new or existing provider?

You have a right to complain to your provider if you are not happy with your experience. Your complaint must be dealt with in line with the requirements set out in the Consumer Protection Code. If you are not satisfied with the outcome of your provider’s complaints process, you may wish to bring a complaint to the Financial Services and Pensions Ombudsman (FSPO). You will find more information about making a complaint to the FSPO on www.fspo.ie.

I am switching my current account to a provider based outside Ireland but inside the Single European Payments Area. However, my employer – or a company I deal with – says it only accepts Irish accounts for payments or direct debits. What can I do?

This is called IBAN discrimination, and it is illegal.

IBAN stands for International Bank Account Number and is the unique combination of numbers and letters that identifies your account in the Single European Payments Area (SEPA).

Your IBAN is used to make and receive domestic and international euro payments across SEPA countries.

These payments were harmonised in 2014 when IBANs were made the standard identifier for all SEPA bank accounts.

IBAN discrimination is where an employer or company, such as a utility company, refuses to accept your SEPA IBAN for euro payments or direct debits.

However an Irish employer or utility company cannot insist you open or maintain an Irish bank account for euro transfers.

We are currently engaging with a range of stakeholders, including business representative bodies, regulated financial service providers, and major users of direct debits and credit transfers to remind them of their obligations.

To find out more, including what steps you can take to have your IBAN accepted, see our explainer:
“What is ‘IBAN discrimination’ and what can I do about it?”

I pay for my insurance policy/loan repayment/mortgage protection by direct debit. What measures are in place to support customers during this period?

The Central Bank has engaged with financial services firms that also provide direct debit services to set out our expectations of how customers must be treated. We expect these firms to have put in place measures that ensure your service will continue if you are affected by a rejected direct debit because you have had to move your current account.

Payments have been missed on my loan, credit card or mortgage because of an operational issue during the switch of bank accounts from Ulster Bank or KBC (e.g. a direct debit not being processed on time). Will this affect my credit report?

The Central Bank’s primary focus in its supervision of the bank account transfers is on ensuring that these operational issues do not arise in the first place. Nevertheless, given the scale of the transfers, the Central Bank is also putting additional safeguards in place to protect consumers.

The Central Credit Register already includes a month's grace period. This means that, if a single monthly payment is missed, this is not recorded in your credit report.

Given the scale of the account migration exercise from Ulster Bank and KBC, we have issued instructions to lenders to amend the Central Credit Register in the event that more than 1 monthly payment is missed because of operational issues. This means that, if you miss loan repayments through no fault of your own as a result of switching bank accounts, and once the payments are again up to date, this will not show up on your credit report. The amendment will be made to the Central Credit Register by your lender after you have engaged with them.

Where possible, we would encourage you to monitor your loan repayments during the account switching process. If you notice that payments have been missed on your account, you should contact your bank immediately. Once you have told your lender that the issue was due to account switching, and your payments are up to date, they are expected to amend the CCR so that your payment history is unaffected.

This applies even if you yourself are not switching bank accounts. For example, it also covers cases where your employer might be switching accounts, raising the risk of a delay in your salary being deposited, and resulting in your loan or credit card payment being late.