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KBC account closure deadline branded ‘irresponsible’

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THE announcement by KBC Bank current account customers that they were only giving customers 90 days to close their accounts has been called “irresponsible”.

People who have current accounts with KBC Bank have been told that the accounts will be closed from June 1st.

The bank said its customers will soon receive notification that they must start closing their current accounts before the lender pulls out of the Irish market.

A statement from the bank said that once customers receive the notification, they have 90 days to close their accounts.

However, the Financial Services Union (FSU) said KBC’s decision to give customers 90 days to close their current accounts was “irresponsible and shows total disregard for their customers”.

FSU General Secretary John O’Connell said: “It is clear from all reports that the banking sector is not ready to cope with the additional workload that will result from the exit of Ulster Bank and KBC.

“All major retail banks have failed to recruit staff and allocate the necessary resources to ensure staff and customers are not adversely affected by the exit of Ulster Bank and KBC.”

The Governor of the Central Bank of Ireland and the Director of Consumer Protection at the Central Bank both say banks are ready for the massive shift.

The closure of the two banks will result in the largest movement of checking and deposit accounts in the state’s history.

KBC is believed to have around 130,000 active current account customers.

Bank customers who want to switch to a new provider report that the receiving banks take months to open an account.

KBC said its customers are under no obligation to take any action until they have been contacted by the bank.

Formal closure notices will be issued to customers in stages beginning June 1, a process that will continue until all customers have been contacted.

After receiving the closure notices, customers have 90 days to close their account.

KBC is selling part of its business to Bank of Ireland, but the daily current accounts are not part of the deal.

It is expected that with the two banks’ upcoming closures this year, customers of KBC and Ulster Bank will be looking for new options for their day-to-day banking.

Some commentators have said the shutdown process could be “disastrous” for those delaying the establishment of new banking regulations.

KBC said its customers do not need to take any action until they have been contacted by the bank and can continue to bank as usual until then.

The notification process will be phased, he added.

After receiving the closure notices, customers have 90 days to close their account.
Ales Blazek, CEO of KBC Bank Ireland, said: “Current accounts are not part of the proposed transaction with Bank of Ireland and in order to transact this business in a responsible manner we would like to let customers know as soon as possible so that they can do so to make the necessary plans as we prepare for our full exit from Ireland.”

He said the bank will invite industry participants to an information session where we will present our detailed plans for closing current accounts to minimize the impact on customers.

“We will be communicating with all checking account customers to notify them and assist them with this process. We are setting up a number of additional supports across our mobile app, contact center and website to ensure this is the smoothest possible process for customers.”

https://www.independent.ie/business/personal-finance/banking/kbc-account-closure-deadline-branded-irresponsible-41546509.html KBC account closure deadline branded ‘irresponsible’

Fry Electronics Team

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