Ulster Bank will write to c.75,000 personal credit card holders in September giving them a six months deadline to pay down the outstanding balance.
The bank said that its credit cards will no longer work from the end of March 2023.
According to the bank, across customers who have UB credit cards:
• 46% clear their balances on a monthly basis
• 29% have balances under €500, averaging €90
• 19% have balances between €500-3K, with average balance of €1.5K
• 6% (c.5,400 customers) have monthly balances over €3K, with the average credit card debt for this cohort around €5,000.
The bank said it “recognises that some customers may not be able to clear their balance within six months and will work with customers on a case-by-case basis for individual plans”.
In Association with
In a statement the bank said: ”Before closing their Ulster Bank credit card, customers should ensure all recurring transactions have moved successfully to their new card and ensure they have sufficient funds to cover the Government Stamp Duty (€30), which will be applied upon closure of the account.
“Customers who have closed their credit card accounts and are moving to a new credit card provider will receive a 'Stamp Duty Letter of Closure’, which they can share with their new credit card provider to avoid being charged stamp on 01 April 2023 for 2022.”
Ulster Bank chief executive Jane Howard said: “While six months will be enough time for the majority of our customers to find a new provider, I recognise that some customers may have difficulty repaying their balance within six months, and we will continue to work with these customers on an individual basis to assist them.
“If any customer needs additional support, I’d strongly encourage them to contact us as soon as they can either in branch, or on the phone.
“Our colleagues are working hard to support customers through all channels and we have changed branch services to allow branch colleagues to focus on supporting customers who are moving their current and deposit accounts.”
Closing journey
Ulster Bank also disclosed what it calls its Top-level Credit Card Account customer journey and contact points
First Letter / email – September 2022
• Day 1: initial letter/ email
• Day 6: Follow-up SMS
• Mobile App & Anytime Banking prompts – ongoing closure prompt
• Oct/Nov – Customer Care Call campaign
• Notice message/ prompt to be included in monthly statements from October.
Second letter / email – January 2023
• Day 1 – letter 2
• Day 6 - Follow-up SMS for letter 2
• Mobile App & Anytime Banking prompts– ongoing closure prompt
• Notice message/ prompt included in monthly statements.
Third letter / email – March 2023
• Day 1 – Letter 3
• Day 6 - Follow-up SMS for letter 3
• Mobile App & Anytime Banking prompts – ongoing closure prompt
• Notice message/ prompt included in monthly statements Credit card is no longer operational (exact date will be communicated to the customer in their letters/ emails).
