The relaxation comes 2½ years after the regulator agreed that widespread temporary payment breaks offered at the start of the Covid-19 pandemic would not reported as payments past due date.Ulster Bank and KBC started writing earlier this year to holders of more than a million current and deposit accounts, giving six months’ notice to find alternative banking arrangements as they retreat from the market.
Even in cases where existing direct debit arrangements can, in theory, move under a Central Bank switching code, many direct debit originators and receivers will take instructions directly from their customers only, according to banking industry officials. Some 600,300 accounts were opened in the three main remaining banks in the first eight months of the year. Almost 434,200, were current accounts, with the number of openings up 46 per cent than the average of the three previous years.The CCR is not like credit agencies in many other countries, which produce a credit score or rating for consumers. Also, it does not cover payment histories regarding the likes of utility bills or rent.
“We would encourage all customers to closely monitor their loan repayments including mortgages, credit cards, overdraft, etc as they move accounts and to contact their lender immediately if a payment has been missed due to the account-moving process,” she said.