Business Lending Interest Rate Review | Ulster Bank

Business Lending Interest Rate Review

Background to the Business Lending Interest Rate Review

In March 2012, Ulster Bank advised business customers (by letter and press announcement) that it was changing the definition of Cost of Funds, a variable component of the interest rate charged on their accounts, to better reflect the bank’s funding costs.

However, not all customers’ facility documentation allowed for this definition change and therefore should not have had this rate increase applied to their account. Approximately 18,000 customer accounts were impacted by this overcharge. The overcharge is on average less than one third of one per cent per annum and the average refund due is less than €2,000.

We sincerely apologise to our customers for this.  Customers that have been impacted include present and previous customers, as well as some whose accounts were sold to loan purchasers. The Business Lending Interest Rate Review has been established to identify the impacted customers and to remediate customers who have been overcharged.

 

Progress Update on the Business Lending Interest Rate Review

We have previously advised that we would commence remediating customers in September 2018 and expect to be complete by March 2019. We are on track to deliver that commitment to our customers, with the majority of impacted customers having received their remediation letter at the time of this update. We are confident that remaining customers will hear from us by March 2019.

We have now written to the majority of impacted customers informing them they are impacted. However, we have had a number of letters returned to us as the customer is no longer at the last known address we hold for them. 

We will continue to try to contact these customers by letter and telephone. However, if you think you may be impacted by the Review and have not received a letter from us, please contact our dedicated helpline, details are outlined in the Need more information section below. 

How do I know if I am impacted by the Business Lending Interest Rate Review?

You do not need to do anything now; all impacted customers will receive a letter informing them if they are impacted in due course.

Should you have any queries, please contact our dedicated helpline, details are outlined in the Need more information section below. 

What Cost of Funds rate applies to my account?

If you have been identified as impacted by this issue, or have received a letter informing you that your account is impacted and / or that your interest rate has been amended, the Cost of Funds (Pre 2012 calculation and definition) rate applies to your account. Please note that this rate is not offered to new accounts.

If you have not received such a letter, the rate applying to your account is the Cost of Funds rate.

To view the current and historic rates, click here.

Need more information?

Should you require any additional information or support, please contact the Business Lending Interest Rate Review helpline on 1800 719 874 Freephone/Lo-Call from mobiles, or +353 1 531 7180 if calling from abroad.

Lines are open 9am to 5pm Monday to Friday excluding public holidays. Calls are recorded for training and quality purposes.

If you are unable to get through to our helpline, you can request a call back here. Our team will do their best to call you back at a time that best suits you.

(Please select Business Lending Interest Rate Review as the query type.)

Alternatively, you can write to us at:

Ulster Bank Ireland DAC
Business Lending Interest Rate Review
PO Box 12951
Dublin 2

Please note that in any correspondence addressed to us we would ask you quote the reference number in your letter or your account number(s) to assist us in identifying your account(s) and responding in a timely manner.

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