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KBC Bank Ireland understands the crucial importance of a current account in the financial daily lives of our customers. We understand that changing banks involves significant time and effort on behalf of customers and it is our intention to support them throughout that process.
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. 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 Ireland will commence issuing the first batch of account closure notification letters in June and customers communicated with will have six months to close their accounts. Letters to customers will issue on a rolling basis over the course of the remainder of this year and into early 2023. KBC will provide reminders to customers during this period through a combination of letters, emails and SMS messages. It is the bank’s intention that the closure of all accounts is managed in a careful and efficient manner keeping customers informed throughout.
KBC Bank has approx. 130,000 current accounts that are either active or have a balance. We estimate that 52,000 of these customers are expected to need to open a new account or move to a new provider. Additionally, 97% of KBC’s active current account customers primarily bank digitally with KBC through its online banking or mobile app.
For Current Account Customers – Frequently Asked Questions
What is the update regarding current account closures?
KBC will begin contacting customers from June 1st, 2022, to give six months’ notice to close their current account. This has been extended from 90 days to six months to provide additional time to switch their account or open a new account with a different provider.
Current accounts are not part of the transaction with Bank of Ireland and KBC will exit the Irish market irrespective of the outcome of the regulatory approvals process for the Bank of Ireland transaction.
KBC will not charge maintenance fees on current accounts from the point at which we commence issuing notice to customers of their account closure and this means they will not incur any extra fees and charges for having two accounts open at once. Customers can visit the Competition and Consumer Protection Commission's website for more information on switching (Switching your bank account - CCPC).
Do customers need to take any action now?
Customers can continue to bank with KBC as normal, however, KBC will begin contacting customers from June 1st, 2022, to give six months’ notice to close their current account. This has been extended from 90 days to six months to provide additional time to switch their account or open a new account with a different provider
Customers may want to start considering options for their new Current Account and are of course free to close or switch their account at any time they wish to.
What will happen to overdrafts?
Customer overdrafts will also be closed as their current accounts close. Previously, we announced that these customers would be provided with 120 days notice. This notice period is now extended to 6 months also to reflect the fact that they may have to go through an application process with another provider. Where a customer is not in a position to repay their overdraft KBC will work with customers on an individual solution appropriate to their circumstances. KBC has c. 7,000 customers with overdraft limits attached to their current accounts.
A message for vulnerable customers
KBC is putting in place additional supports for more vulnerable customers and those who may need some extra assistance. This comprises of additional outreach and communication, access to a dedicated phone line and dedicated vulnerable customer care team who are specifically trained to support customers who may be vulnerable. Vulnerable Customers can call 1800 804 472.
How can customers find out more?
KBC is committed to keeping customers updated. KBC will continue to communicate with customers well in advance of any changes to their Current Account and will provide them with further details and support on any actions they may need to take.
For more details customers can visit our dedicated webpage here.
KBC will continue to keep www.kbc.ie up to date as new information becomes available.