KBC Bank Ireland would like to draw your attention to some important information

On the 16th April KBC announced that it was reviewing its options to divest or sell non-performing loans. On the 30th August KBC Bank Ireland announced it will sell substantially all of its non-performing mortgage loan portfolio and a small number of non-mortgage non-performing loans in a transaction financed by funds managed by CarVal Investors. Once this is completed, Pepper Finance Corporation (Ireland) DAC will be managing the loans. Pepper is regulated by the Central Bank of Ireland. Customers will continue to have the same legal and regulatory protections (for example under the Consumer Protection Code (CPC) and the Code of Conduct on Mortgage Arrears (CCMA)) after the sale. You can read a copy of the press release here.

Once this is completed, Pepper Finance Corporation (Ireland) DAC will be managing the loans. Pepper is regulated by the Central Bank of Ireland. Customers will continue to have the same legal and regulatory protections (for example under the Consumer Protection Code (CPC) and the Code of Conduct on Mortgage Arrears (CCMA)) after the sale.

We have put together a number of frequently asked questions to help you understand what this sale agreement means for customers.

Frequently Asked Questions

  • On the 30th August KBC Bank Ireland announced it will sell substantially all of its non-performing loan portfolio in a transaction financed by funds managed by CarVal Investors.

    Once this is completed, Pepper Finance Corporation (Ireland) DAC will be managing the loans. Pepper is regulated by the Central Bank of Ireland. Customers will continue to have the same legal and regulatory protections (for example under the Consumer Protection Code (CPC) and the Code of Conduct on Mortgage Arrears (CCMA)) after the sale.

    Customers do not need to take any action. We will get in touch with customers at least 60 days before the transfer if their account is included in the sale. Customers continue to be afforded all regulatory protections.
  • KBC classify a non-performing loan in line with regulatory guidelines. A loan is typically classified as non-performing as a result of built-up arrears (>90 days) or a requirement to have the loan restructured (reduced payments etc.) A loan can still be classified as non-performing for a period post the resolution of arrears or the conclusion of a restructure.
  • You will receive a letter notifying you if your loan account is included in the sale. This letter will be sent to you at least 60 days before the transfer of your account.
  • CarVal Investors is an established global alternative investment manager and the transaction is financed by funds managed by CarVal Investors.

    Pepper will be managing the loans as Legal Title Holder. Pepper is regulated by the Central Bank of Ireland.

    Customers will continue to have the same legal and regulatory protections (for example under the Consumer Protection Code (CPC) and the Code of Conduct on Mortgage Arrears (CCMA)) after the sale.
  • Yes, Pepper is a regulated entity and is regulated by the Central Bank Ireland. The Central Bank monitors and enforces consumer protection through its Consumer Protection Code (CPC) and Code of Conduct for Mortgage Arrears (CCMA). The same legal and regulatory protections that apply to your account today will continue to apply after the sale.
  • Discussions with Bank of Ireland are ongoing. Once these discussions have concluded we will update customers.
  • We will continue to work with all our customers in financial difficulty to find sustainable solutions, always being clear and fair in our communications and dealings and always mindful and respectful of your individual circumstances. We wish to stress the importance of active engagement in dealing with, or averting a financial difficulties situation

    It is important that you continue to meet your monthly repayments and that you contact our Arrears Support Unit on 1850 93 02 35 if your circumstances should change.
  • This letter is our 60 day notification to you that your account will be sold to CarVal at a later date. We will write to confirm separately once the transfer is complete.
  • On the 30th August KBC Bank Ireland announced it will sell substantially all of its non-performing mortgage loan portfolio and a small number of non-mortgage non-performing loans in a transaction financed by funds managed by CarVal Investors. Braunton is the registered company with which KBC Bank Ireland has contracted to sell the portfolio of loans. Braunton is controlled by CarVal Investors. 
  • How long certain personal information is stored depends on the nature of the information and the purposes for which they are processed. KBC follows statutory and legal obligations to determine how long information is to be retained. For example, we are required to retain some customer information for 6 years after the end of the customer relationship in accordance the Consumer Protection Code and also to meet our obligations under anti-money laundering legislation.

    If the purpose for which the information was obtained has ceased and the personal information is no longer required, the personal information will be deleted or anonymised which means that any identifying characteristics are removed from your personal information. KBC has put in place procedures to ensure that files are regularly reviewed and that personal information is not retained any longer than is necessary.
  • We only provide information that is necessary and therefore required to ensure these parties can manage your accounts. Such information may include your name and home address, date of birth and other contact details, as well as the history of repayments on your loan.

    When you signed your Loan Agreement with us, you agreed that we could share your personal data for the purpose of, or in connection with, a transfer of your loan. Separately, KBC as the owner of the loans and having a right to transfer the loans, has a legitimate interest in sharing this data to the extent necessary for the purpose of or in connection with such a transfer.  

    We ensure at all times that we comply with the terms of your loan agreement and with applicable data protection law. 
  • We note that you wish to withdraw your consent. When you signed your Loan Agreement with us, you agreed that we could share your personal data for the purpose of, or in connection with, a transfer of your loan.

    Separately, KBC as the owner of the loans and having a right to transfer the loans, has a legitimate interest in sharing this data to the extent necessary for the purpose of or in connection with such a transfer. KBC remain entitled to share the data to the extent necessary for the purposes of or in connection with the transfer.  

    Any sharing of your personal data in this respect will be conducted in accordance with applicable data protection law.
  • Pepper will assume the servicing of the account after the sale completes. Pepper is a regulated entity and is regulated by the Central Bank Ireland. The same legal and regulatory protections that apply to your account today will continue to apply after the sale.
  • No. The tenancy agreement that you have in place with your tenant(s) is not impacted by the sale of your account to CarVal.
  • Pepper will assume the servicing of the account after the sale completes. Any decision regarding a receiver being appointed or continuing to act will be made by Pepper. Pepper is a regulated entity and is regulated by the Central Bank Ireland. The same legal and regulatory protections that apply to your account today will continue to apply after the sale.
  • We would strongly encourage you to fully engage with KBCI while your loan account remains with us. You should also continue to engage with Pepper after completion of the sale.  

    After the sale, where the legal proceedings have not already concluded any decision regarding the commencement or continuing of legal proceedings will be made by Pepper.

    Until the completion of the sale, you can still contact us at KBC. Pepper will assume the servicing of the account after the sale.  
  • No costs will be incurred by you and the same legal and regulatory protections that apply to your account today will continue to apply after the sale.  

    The sale does not change the terms and conditions applicable to your loan account. 
  • Until the transfer date you should continue to contact KBC to manage your account. We will write to customers again once the transfer is complete Upon transfer, Pepper will also write to you with relevant details. 
  • KBC classify a non-performing loan in line with regulatory guidelines. A loan is typically classified as non-performing (a “NPL”) as a result of built-up arrears, however a loan could also be classified as a NPL for other reasons, for example where the customer has availed of an alternative repayment arrangement without ever having gone into arrears.  A loan can still be classified as a NPL for a period following the resolution of arrears or the successful completion of an alternative repayment arrangement. If you would like to speak to someone or require some support call you can call us on 0818 930 235 and our Arrears Support team will be happy to help. Phone lines are open from Monday to Friday 9.00am until 5.30pm.

    There is no right of appeal on the decision to include your loan in this sale however you can make a complaint in relation to the business services provided by KBC Bank Ireland by phone, in person or by writing. The complaint will be fully investigated by us and if it is not resolved to your satisfaction within five business days, a written response will be provided to you. While our investigation of any complaint is ongoing we will provide you with a regular written update. The Consumer Protection Code requires us to attempt to investigate and resolve a complaint within 40 business days of receipt. However we generally respond to all complaints within 20 business days.
  • Until the transfer date, you should continue to engage with KBCI’s Arrears Support Unit if you are experiencing financial difficulties or if you are concerned that you will soon experience financial difficulties.  Pepper will assume the servicing of the account after the sale completes.  

    If, after the transfer date, your circumstances are such that you feel you need (or may soon need) a further alternative repayment arrangement, you should immediately engage with Pepper and seek their assistance.  Pepper is a regulated entity and is regulated by the Central Bank Ireland. The same legal and regulatory protections that apply to your account today will continue to apply after the sale.
  • Until the transfer date, you should continue to engage with KBC’s Arrears Support Unit if you are experiencing financial difficulties or if you are concerned that you will soon experience financial difficulties.  Pepper will assume the servicing of the account after the sale.  If, after the transfer date, your circumstances are such that you need a further alternative repayment arrangement, you should immediately engage with Pepper and seek their assistance.  

    Pepper is a regulated entity and is regulated by the Central Bank Ireland. The same legal and regulatory protections that apply to your account today will continue to apply after the sale. We would like to assure you that we are fully committed to helping our customers who are experiencing financial difficulty to find a solution to manage their mortgage.

    If you would like to speak to someone or require some support call you can call us on 0818 930 235 and our Arrears Support team will be happy to help. Phone lines are open from Monday to Friday 9.00am until 5.30pm.
  • The Consumer Protection Code requires us to give you at least 60 days’ notice of the sale before it completes. The purpose of this notice is to allow you to make alternative arrangements if required, for example repaying your loan and discharging your debt to KBCI or arranging a re-finance with another financial institution.

    At all times, you remain entitled to repay your loan in full regardless of who owns the loan. Unless the loan is repaid in full before the sale completes, it will be included in the sale. The same legal and regulatory protections that apply to your account today will continue to apply after the sale.
  • There is no right of appeal as such however you can make a complaint in relation to the business services provided by KBC Bank Ireland by phone, in person or by writing. The complaint will be fully investigated by us and if it is not resolved to your satisfaction within five business days, a written response will be provided to you. While our investigation of any complaint is ongoing we will provide you with a regular written update. The Consumer Protection Code requires us to attempt to investigate and resolve a complaint within 40 business days of receipt. However we generally respond to all complaints within 20 business days.
  • The existing terms and conditions of your mortgage will be honoured as part of any transfer to Pepper. These terms and conditions are as set out in your loan agreement. Where your loan account is subject to a variable interest rate, the rate may vary from time to time.  

    Any changes to the interest rate applicable to your loan account will be notified to you by KBC (if prior to the completion of the sale) or Pepper (if after completion of the sale) in accordance with all regulatory requirements. 
  • On the 16th April KBC entered into a Memorandum of Understanding (MoU) with Bank of Ireland, expressing the parties’ intention to explore a route that could potentially lead to a transaction whereby Bank of Ireland commits to acquire substantially all of KBC Bank Ireland’s performing loan assets and liabilities. No immediate impact is foreseen for your KBC Current Account and you do not need to take any action. We are committed to keeping you updated; if circumstances change during the coming months we will keep you informed and outline the impacts (if any) for you.
  • Your interest rate type (e.g. LTV, fixed rate, Tracker) will not change as a result of the sale. 

    If any changes are made to the interest rate applicable to your loan account these must be made in accordance with the terms and conditions of your loan agreement and in adherence with our Regulatory requirements, which must continue to be honoured after the sale completes. These terms and conditions are as set out in your KBC loan agreement. 

    If there are any changes to the interest rate applicable to your loan account, these will be notified to you by KBC (if prior to the completion of the sale) or Pepper (if after completion of the sale) in accordance with all regulatory requirements.
  • KBC as the owner of the loans and having a right to transfer the loans, has a legitimate interest in sharing this data to the extent necessary for the purpose of or in connection with such a transfer.  

    We ensure at all times that we comply with the terms of your loan agreement and with applicable data protection law. 
  • Pepper will assume the servicing of the account after the sale completes. Pepper is a regulated entity and is regulated by the Central Bank Ireland. The same legal and regulatory protections that apply to your account today will continue to apply after the sale.
  • Yes you can. All details on how you can make payments will be provided to you closer to the transfer date.
  • The existing terms and conditions of your mortgage will not change as a result of the sale, and must continue to be honoured after the sale completes. These terms and conditions are as set out in your KBC loan agreement. 

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