Business Lending Interest Rate Review | Ulster Bank

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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 now remediated almost all affected customers.

However, as a number of letters have been returned undelivered to us there are a small number of customers left to be remediated. We will continue to try to reach these customers by letter and telephone, but if you think you may be affected 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?

We have attempted to contact all affected customers. However, a number of letters have been returned undelivered to us. If you think you may be affected 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. 

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.

Additional helpful information

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.

For a listing of the current and historic rates, please click here.

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