Business Lending Interest Rate Review
What is Cost of Funds?
Cost of Funds is a variable component of the interest rate charged on certain business lending facilities provided by Ulster Bank. It is based on how much it costs Ulster Bank to source the money that it lends to customers. The interest rate is made up of the Cost of Funds rate, which can vary from week to week, and the margin. The Cost of Funds component is updated each week on the Ulster Bank website.
How will I know if I’m impacted?
You will receive a letter from us if you are impacted.
I have received a letter notifying me that my account is impacted, when will my account be remediated?
The calculation of the overcharged interest is a complex exercise, but we expect to commence remediating customers who have been overcharged as a result of this issue in September 2018, and the more complex cases to be finished by the end of March 2019.
I have received a letter notifying me that my account is impacted, how much of a remediation payment will I receive?
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.
My loans were sold, could these loans have been impacted?
Yes, some customers whose account(s) were sold are impacted. Ulster Bank will remediate those customers whose accounts were impacted by this issue for the period it overcharged them, i.e. up to the point that they were sold.
If you have any concerns in relation to the interest rate charged to your account(s) since the date of transfer of your account(s) you should contact the credit servicer appointed by the Loan Purchaser of your account(s).
What should I do if I want more information?
If you have any queries or would like more information, you can:
- Call our dedicated Business Lending Interest Rate Review helpline on 1800 719 874 Freephone/Lo-Call from mobiles, or +353 1 531 7180. Lines are open 9am to 5pm Monday to Friday excluding public holidays. Calls are recorded for training and quality purposes;
- Request a call back from our dedicated Business Lending Interest Rate Review team 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 when requesting a call back); or
- Write to us at Ulster Bank Ireland DAC, Business Lending Interest Rate Review, PO Box 12951, Dublin 2;
What Cost of Funds rate applied to my account during the period it was overcharged?
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, you were charged the Cost of Funds rate during the period of overcharge.
You should have been charged the Cost of Funds (Pre 2012 calculation and definition) rate from 26 April 2012 until the earliest of the date your account closed, was sold or when we corrected the interest rate.