Half a million Ulster and KBC bank accounts have yet to move

HUNDREDS of thousands of accounts remain active with the two banks exiting this market just weeks before the first deadline to close them down.

Figures from late September show around 854,000 accounts remained open at Ulster Bank and KBC Bank Ireland.

This is down 31 percent since the start of the year, the central bank said.

But it will worry exiting bank bosses and regulators that nearly 500,000 of those accounts were still active at the two exiting banks.

And around 300,000 of those active accounts are the customer’s primary bank account, the central bank said in a new account switching press release.

Figures include household and business accounts, but exclude credit union and An Post account openings.

Ulster Bank has been forced to delay its first closing date to ensure welfare recipients aren’t making budget-announced higher payments, such as pensions. B. a double child benefit payment.

The first batch of account holders were given a deadline last weekend to close their accounts and find a new provider.

But they now have until Friday 4 November to make new banking arrangements.

Ulster had planned to freeze the accounts of thousands of customers from this weekend.

The fact that so many have yet to close their accounts and continue to use the leaving banks’ current and deposit accounts suggests that the two banks will struggle to meet the deadlines set for exiting the country.

So far, Ulster Bank and KBC Bank customers have closed a total of 380,989 accounts in the nine months to September, the central bank said.

Account holders are reluctant to close accounts at the two banks because they fear that something could go wrong with the newly opened accounts, for example if a direct debit remains unpaid.

The rate of account closures has accelerated in recent weeks, the central bank said.

About 74,000 accounts were closed in the four weeks ended September, a 30 percent increase from the month of August.

So far this year 718,112 checking and deposit accounts have been opened with AIB, Bank of Ireland and Permanent TSB.

The central bank said: “The pace of account openings has also increased in recent weeks, although not to the same extent as account closures. In the four weeks to the end of September, 95,410 accounts were opened, a 7 percent increase compared to the corresponding period to the end of August.”

The Ulster Bank said last week that of those who received their first formal notification in April and May, almost two-thirds have already either closed or liquidated their checking accounts or left them dormant.

This means that about a third of people who have been asked to close their accounts have not yet done so.

Ulster Bank said it is continually reaching out to the remaining third of those customers and most report they have opened a new account elsewhere and are in the process of moving their payments to their new account.

The bank said 75 per cent of Ulster Bank’s personal current account customers who receive Social Security payments have already taken action against their accounts.

“In this regard, following the state budget announcements of additional Social Protection payments, we have consulted with key stakeholders to ensure that our current and deposit account withdrawal plans do not cause our customers undue worry or difficulty in receiving these important payments. out, back payments,” said the bank.

One of the key payments affecting the majority of customers is the double payment of child support, which is expected to be made by Tuesday 1st November.

The bank said it is ready to freeze accounts from this Saturday for those who have already been warned about it. Approximately 30 days later, these accounts should be closed.

Ulster Bank chief executive Jane Howard urged all customers who need more support to contact the bank on 0818 210 260 or 00353 1804 7475 from abroad or 1800 656 001 if they have vulnerabilities.

https://www.independent.ie/business/personal-finance/banking/half-a-million-ulster-and-kbc-bank-accounts-have-yet-to-move-42061209.html Half a million Ulster and KBC bank accounts have yet to move

Fry Electronics Team

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