Existing Customer Hub
KBC Bank Ireland would like to draw your attention to some important information
On the 16th April 2021 KBC announced that it was reviewing its options to divest or sell non-performing loans. On the 30th August 2021 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 (‘CarVal’).
The agreement to sell the portfolio of loans was made between KBC and Braunton Property Finance DAC (“Braunton”), an entity established by CarVal. On the 4th February 2022 this loan sale was completed. If your loan was included in the sale you will now have received a letter of confirmation that your loan has been transferred. You will also have received a welcome letter from Pepper.
As part of the sale, Braunton nominated Pepper Finance Corporation (Ireland) DAC (‘Pepper’) to be the legal title holder of the loans. As a result, Pepper is now the legal owner of the loans and will also act as servicer in managing the loans. This means that Pepper will collect all loan payments and undertake the day to day servicing of 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.
Separately, on 22nd October 2021 KBC Bank Ireland entered into a legally binding agreement with Bank of Ireland. This means that an agreement has been reached where Bank Of Ireland would acquire a small number of non-performing loans. If your Non-Performing Loan is included in this sale and should this binding agreement receive all the relevant regulatory approvals we will communicate to you well in advance of any actual steps or changes that may be taken in respect of your loans.
On the 12th of April 2022 KBC Bank Ireland announced that it will commence the process of engaging with customers regarding the closure of their current accounts from June 1st. Customers are not required to take any actions until they have been contacted by the bank. Formal closure notices will issue to customers from 1st June on a phased basis, a process that will continue until all customers have been contacted. Upon receipt of the closure notices, customers will have 6 months to close their account. This follows the decision made by the KBC Bank Ireland Board to formally wind down the operations of the bank and exit the Irish market irrespective of the outcome of the regulatory approvals process for the Bank of Ireland transaction. For more information click here.
We have put together a number of frequently asked questions to help you.
Frequently Asked Questions
Pepper Loan Transfer Queries
Payment Queries
Here you will find information about making payments if your loan has transferred to Pepper.
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General Queries
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KBC and Bank of Ireland entered into a binding agreement on 22 October 2021. The parties are awaiting full regulatory approval to allow the transaction proceed. Once all approvals have been obtained, further communications will issue to affected customers to provide additional information.
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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 0818 930 235 if your circumstances should change.
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Please be aware that KBC will commence a process of engaging with customers regarding the closure of current accounts from June 1st. You are not required to take any actions until you have been contacted by us. Formal closure notices will issue to customers from 1st June on a phased basis, a process that will continue until all customers have been contacted. Upon receipt of the closure notices, you will have 6 months to switch or close your account.
Please note that you are not required to take any actions until you have been contacted by us. We apologise in advance for any inconvenience this may cause and we are ready to help you should you have any queries right now, please get in touch with us.
When there are further updates we will write to you with any additional information and support you may require. We will ensure you are provided with plenty of notice of any impact and/or changes to your account in line with all legal and regulatory protections.
Customers can switch banking provider should they wish to do so. You can visit the Competition and Consumer Protection Commission's website for more information on switching (Switching your bank account - CCPC). Please refer to our FAQ below for more information on switching or closing your account.
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Your current account discount will still apply to your mortgage on the existing terms and conditions attaching to it. When the sale completes and your mortgage transfers, any current account discount that applies at that time will continue to apply to your mortgage.
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 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 after the sale completes, these will be notified to you in accordance with all regulatory requirements.
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You can contact our tracker mortgage examination team at trackermortgageexamination@kbc.ie or by phone on 01 664 6983.
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While no immediate impact is foreseen for your Personal Loan, should a Binding Agreement with Bank Of Ireland receive regulatory approval, your Personal Loan may be transferred to Bank of Ireland as a small number of non-performing loans were included in the Binding Agreement.
When there are further updates we will write to you with any additional information and support you may require. We will ensure you are provided with plenty of notice of any impact and/or changes to your account in line with all legal and regulatory protections.
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While no immediate impact is foreseen for your Credit Card, should a Binding Agreement with Bank Of Ireland receive regulatory approval, your Credit Card may be transferred to Bank of Ireland as a small number of non-performing loans were included in the Binding Agreement.
When there are further updates we will write to you with any additional information and support you may require. We will ensure you are provided with plenty of notice of any impact and/or changes to your account in line with all legal and regulatory protections.
Pepper Loan Transfer Queries
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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.
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CarVal Investors is an established global alternative investment manager and the transaction is financed by funds managed by CarVal Investors. Pepper hold Legal Title to the loans and are now servicer of the loans. This means that Pepper will collect all loan payments and undertake the day to day servicing of the loans.
Pepper is regulated by the Central Bank of Ireland. Customers 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.
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On the 4th February 2022 this loan sale was completed. If your loan was included in the sale you will have now received a letter of confirmation that your loan has been transferred. You will also have received a welcome letter from Pepper.
Pepper are now the new servicer of the loan and will provide you with the support you need to manage your loan.
If you have an immediate query you can contact Pepper on 0818 818 181 within Ireland or from overseas on +353 61 236 928.
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The transfer of your loan not have a negative impact on your credit profile. Every month lenders submit information on your loan to the Central Credit Register. Pepper have now commenced reporting on your credit profile.
Now that your loan has transferred we recommend that you maintain your scheduled repayments on your loan. By not maintaining your scheduled repayments, this may impact on your credit rating records for up to 5 years and may impact on your ability to access credit in the future.
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Braunton is the registered company with which KBC Bank Ireland contracted to sell the portfolio of loans. Braunton is controlled by CarVal Investors.
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Where KBC holds your title deeds, the title deeds will be transferred to and held securely by Pepper, your new loan servicer, until the loan is paid off in full.
Should you require the title deeds you will need to instruct your solicitor to request the title deeds from Pepper in the normal way.
Should you have further queries regarding your title deeds please contact Pepper on 0818 818 181 within Ireland or from overseas on +353 61 236 928.
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The transfer of your loan will not have a negative impact on your credit profile. Every month lenders submit information on your loan to the Central Credit Register. Pepper will commence reporting your credit profile from the transfer date.
We would strongly recommend that you maintain your scheduled repayments on your loan. By not maintaining your scheduled repayments, this may impact on your credit rating records for up to 5 years and may impact on your ability to access credit in the future.
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The sale did not change the existing terms and conditions of your loan. Your current arrangement will remain in place however Pepper have now assumed all aspects of the servicing of the account. So, if you have any questions about your current repayment arrangement or if you feel you may need a new repayment arrangement, you can contact Pepper to discuss your account.
Pepper is a regulated entity and is regulated by the Central Bank of Ireland. The same legal and regulatory protections that applied to your account before the sale continue to apply.
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Yes, Pepper is a regulated entity and is regulated by the Central Bank of Ireland. The Central Bank of Ireland 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 applied to your account before the sale will continue to apply after the sale.
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If your circumstances are such that you need a further alternative repayment arrangement, you should immediately engage with Pepper and seek their assistance.
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Pepper have now assumed the servicing of the account. Pepper is a regulated entity and is regulated by the Central Bank of Ireland. The same legal and regulatory protections that applied to your account before the sale will continue to apply after the sale.
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No. The tenancy agreement that you have in place with your tenant(s) is not impacted by the sale of your loan.
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As Pepper are now servicing your loan account a 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 of Ireland. The same legal and regulatory protections that applied to your account before the sale will continue to apply after the sale.
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Yes. You will need to set up the authorised third party directly with Pepper.
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As Pepper are now servicing your loan account a decision regarding commencement or continuing legal proceedings will be made by Pepper. Pepper is a regulated entity and is regulated by the Central Bank of Ireland. The same legal and regulatory protections that applied to your account before the sale will continue to apply after the sale.
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No additional costs will be incurred by you as a result of the sale and the same legal and regulatory protections that applied to your account before the sale will continue to apply after the sale.
The sale does not change the terms and conditions applicable to your loan account.
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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.
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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.
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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.
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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. You can find out more on how to make a complaint here.
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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 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 Pepper in accordance with all regulatory requirements.
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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 (and, where applicable, in your PIA agreement).
Payment Queries
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Your Direct Debit has now been transferred to Pepper and any payments will automatically be collected by Pepper.
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If you pay by Debit Card you can contact the new loan servicer Pepper on 0818 818 181 within Ireland or from overseas on +353 61 236 928 to make your loan repayment.
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If you are making your repayments by Standing order or Credit Transfer please change your beneficiary details to the details confirmed on the letter you have received from Pepper or alternatively contact your new loan servicer Pepper on 0818 818 181 within Ireland or from overseas on +353 61 236 928 to confirm the details you should use for your loan repayments.
Please make all your payments to Pepper.
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Pepper do not offer an An Post card payment facility. If you pay by An Post payment card you can contact Pepper on 0818 818 181 within Ireland or from overseas on +353 61 236 928 to discuss your loan repayment options.
Note: where your loan has transferred and you continue to make payments to KBC these may not be applied to your loan account. Please forward all payments to your new loan servicer Pepper.