New figures suggest that remaining banks won’t be ready to take on new customers
Labour finance spokesperson Ged Nash TD, has said that thousands of Ulster Bank and KBC customers could be left without an account for weeks, with unknown knock-on effects on overdraft charges and credit ratings. He says that the Regulator must make sure that the banks put their customers first/
Responding to figures released from the Banking and Payments Federation of Ireland (BPFI) which indicate a huge backlog is building as customers scramble to find alternative banking options due to the exit of Ulster Bank and KBC respectively, Labour finance spokesperson Ged Nash TD said:
“There is now a real and serious risk of existing Ulster Bank and KBC customers, particularly the elderly and vulnerable, being caught in the crosshairs and being left without a bank account. This is a slap in the face for customers who are being forced to change banks through no fault of their own.
“For some time now, I have warned that thousands of Ulster Bank and KBC customers could be potentially exposed to weeks of personal and business banking chaos when the two banks leave the market this year. Today’s figures are just another red flag that justifies these fears.
“The banking sector’s representatives have today finally acknowledged that there will be “a significant task” that will continue “well into the latter half of this year”.
“This is something the Labour Party and stakeholders like the Financial Services Union have repeatedly raised. Banks have let go of thousands of staff so it is impossible to have any confidence that the so-called Big Switch will go well for customers. Banking staff are already facing enough stress due to understaffing and additional work as a result of a frenzy of bank branch closures.
“People have enough to worry about without being kept awake at night by the prospect of a bounced direct debit payment on mortgages or car loans. This ‘Big Switch’ has the potential to destroy people’s credit record through no fault of their own.
“It is simply not acceptable that we still don’t know how this all may affect a customer’s credit rating. For example, who takes responsibility if an overdraft is missed due to the switch? I fear the ordinary customer will once again be left to carry the can. The regulator must go in hard on the banks and make sure customer’s credit ratings are protected at all costs.
“Along with the regulator, the Minister for Finance must also step up and ensure a firm plan is in place to Ulster Bank and KBC protect customers, especially those who run the risk of falling through the cracks. The Central Bank must be clear that it will slam on the breaks in terms of the withdrawal of the two retail banks until we can be confident that ordinary customers won’t be negatively affected.”
