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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.
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.
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.
Your Direct Debit has now been transferred to Pepper and any payments will automatically be collected by Pepper.
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.