Dublin, Ireland – Ulster Bank has announced that it will be writing off most of the remaining credit card balances for its customers in the Republic of Ireland. This decision comes as part of the bank’s ongoing exit from the Irish market.
In a statement, Ulster Bank confirmed that customers who have been making regular monthly repayments in accordance with their credit card terms will see their outstanding balances written off, with no adverse impact on their credit rating. This move is expected to benefit thousands of customers, providing significant financial relief as the bank winds down its operations in the country.
The bank also addressed the situation of “non-performing customers” who have been enrolled in a payment plan. These customers will also see their accounts refunded without any negative impact on their credit rating due to the refund. Additionally, Ulster Bank has reached out to those who have missed payments and have not engaged with the bank regarding their outstanding credit card balances. These customers have been given 60 days to engage with the bank to discuss repayment options or settle their debts.
For those who fail to engage with the bank within the stipulated 60-day period, Ulster Bank warned that their balances would be written off, but this would come with a significant downside. Customers with a credit limit of -€500 or more could see an adverse impact on their credit rating, which might affect their ability to borrow money or access credit facilities in the future.
Ulster Bank’s decision to write off these balances follows its earlier announcement in September 2022, when it provided six months’ notice to its remaining 75,000 credit card holders that their cards would no longer be usable from March 2023. At that time, the bank also warned that any recurring transactions would be canceled and returned unpaid, urging customers to continue making monthly payments on any outstanding balance.
While the bank has not disclosed the total cost of writing off these accounts, the move underscores the significant financial and operational implications of Ulster Bank’s exit from the Irish market. Details of this decision were first reported by the Irish Times, highlighting the far-reaching impact on both the bank and its customers.
Impact on Credit Ratings and Future Borrowing
Ulster Bank has reassured customers who have maintained their repayment schedules that there will be no negative impact on their credit ratings due to the write-off. However, the bank has also made it clear that those who fail to engage and whose balances are written off could face future difficulties in obtaining credit.
This development is a critical step in Ulster Bank’s withdrawal from the Republic of Ireland, marking the end of an era for the bank and its customers. The financial landscape in Ireland continues to evolve as other banks adjust their operations in response to Ulster Bank’s exit.
