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KBC Bank extends its account closure notice to six months

The original timeframe was 90 days.

KBC BANK HAS said that it will extend the notice period for accounts being closed for another six months, as it withdraws from the Irish market. 

Both Ulster Bank and KBC are winding down their operations in Ireland, leaving Bank of Ireland, AIB and Permanent TSB to fill the gap in a landscape that has been described as the “biggest logistical change in the history of Irish banking”.

The Central Bank called a meeting of Ireland’s main banks to discuss how “more needs to be done” to support customers affected by KBC Bank and Ulster Bank’s planned departures from the market.

The banks have been told they must protect consumers, including assisting vulnerable customers, as many close their accounts and switch to a new bank.

KBC Bank said this morning that it understands that changing bank accounts involves “significant time and effort” from customers.

“We are also fully aware of the apprehension around the volume of customers that will be seeking to open new current accounts and the challenge to the market that presents,” the Belgian bank.

It is our determination to meet our responsibilities and to minimise to the greatest extent possible, the inconvenience caused to our customers. Accordingly, KBC Bank Ireland has decided to extend the notice period for the closure of current accounts from 90 days to six months.

KBC Bank said it would start issuing the first batch of account closure notification letters in June and customers communicated with will have six months to close their accounts.

These letters will issue on a rolling basis this year and into early 2023.

KBC will provide reminders to customers during this period through a combination of letters, emails and SMS messages. 

KBC Bank has around 130,000 current accounts that are either active or have a balance.

For more details, you can read KBC’s FAQ page on this issue here.

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11 Comments
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    Mute Michael Drennan
    Favourite Michael Drennan
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    Apr 29th 2022, 9:16 AM

    It’s simple really, banks can’t make money in Ireland therefore foreign based banks are leaving. As a nation we have made the choice that if you can’t pay your mortgage then there is very little the banks can do to recover their loan.This then affects new loans as they also have to factor in the difficulties of repossession going forward and we all suffer to protect delinquent debtors.It’s one of the reasons new mortgages are hard to get and new buyers suffer. For every action there is a consequence.

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    Mute Lee King Buckett
    Favourite Lee King Buckett
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    Apr 29th 2022, 9:32 AM

    @Michael Drennan: That’s not the reason that banking here is unattractive.

    The biggest issue is the capital reserve ratio that banks in Ireland have to operate. As a result of the financial crisis, its much higher here than other EU countries and, in a low interest environment, it amounts to a very high cost of capital.

    Add to that high levels of financial illiteracy when it comes to ancialliary products such as investments, pensions, assurance etc, high degrees of customer lethargy when it comes to switching banks, small population, an obsession with cash, and a deeply entrenched duopply in operation and you’ll see that the real issue is nothing to do with mortgage delinquency at all.

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    Mute Killian Collins
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    Apr 29th 2022, 9:53 AM

    @Lee King Buckett: bit of both I’d say?

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    Mute Donal McCarthy
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    Apr 29th 2022, 4:18 PM

    @Lee King Buckett: low levels of asset recovery in mortgage delinquency is one of the reasons why Irish banks still have to hold higher reserves. We are much further ahead of many other European countries when it comes to cashless transactions. Ulster is leaving mainly because the level of investment required to modernize their network was simply too big to justify. We need an open European banking market; however, this would inevitably lead to the disappearance of our domestic banks.

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    Mute Mark Kean
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    Apr 29th 2022, 8:25 AM

    We need more competition.. so frustrating we are in the EU but yet we don’t have European Banks competing for the Irish business however small it may be.

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    Mute Dave.
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    Apr 29th 2022, 8:42 AM

    @Mark Kean: Interestingly, they also operate in Brussels, like you mentioned, I do not see why they couldn’t just move to online only as an option for some consumers and all people that wish to keep there accounts open and operate them from Brussels even in a Current Account/Deposit only format via the app. I assume, our CCP/Central Bank has pushed them on this pressing matter. Seen as we have no problem bailing out finincal instiutes from other EU states, IE Sentanta Insurance -> https://www.independent.ie/business/personal-finance/policyholders-here-paying-for-claims-associated-with-collapsed-insurer-quinn-that-arose-in-britain-and-ni-37130130.html

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    Mute Lee King Buckett
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    Apr 29th 2022, 9:34 AM

    @Dave.: Why would they? Banking without a mortgage book is a loss making operation. Why would any business want to go out of their way to keep a loss making operation open for a cohort of people who can’t be bothered with the hassle of switching?

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    Mute Earth Traveller
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    Apr 29th 2022, 9:47 AM

    @Dave.: “our CCP/Central Bank” What? The Chinese Communist Party is involved???

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    Mute Dave.
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    Apr 29th 2022, 10:26 AM

    @Lee King Buckett: Not my reason Lee, I find them a very good bank, even if it’s loss making here moving the current accounts to Brussels and integrating with that system is easy from an IT perspective. Even if it wasn’t or they didn’t move accounts, if I as a EU citizen was allowed open my account with them in Brussels I would. The option should at least be given to customers. Revolut operates from Lithuania as an example.

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    Mute Michael Dowling
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    Apr 29th 2022, 10:00 AM

    Sad to see them go. Banking with them and found them very good. They don’t charge like the others do and good service.

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    Mute Niall Ó Cofaigh
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    Apr 29th 2022, 12:27 PM

    The article is incorrect when it says that only TSB, AIB and BOI can fill the gap. There are pure online banks too such as Revolut and N26 offering many banking services. An Post also offer some banking services. The days of large local bank branches may be coming to an end or indeed one stop shops for all financial services. Sadly bank and branch closures are necessary to compete with on line banking services. The question of where people get mortgages is also a major issue.

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