Joan Burton (Dublin West, Labour)
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Question 140: To ask the Minister for Finance if his attention has been drawn to the financial difficulty and inconvenience caused for Irish based customers of a bank (details supplied) in the wake of the decision of the latter to cease its retail banking operations here; his views on whether undue pressure may be placed on these customers to pay off bank loans and credit card bills in full in the coming months rather than switching them to another bank; if the Financial Regulator is taking steps to ensure that such undue pressure is not created and that switching banks is facilitated; and if he will make a statement on the matter. [11732/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Bank of Scotland (Ireland) has informed the Financial Regulator of its commercial intention to close the Halifax retail banking business and the Bank of Scotland (Ireland) intermediary business in the Republic of Ireland, commencing at the end of May 2010. The Financial Regulator is working with Bank of Scotland (Ireland) to ensure that customers' interests are protected in accordance with the Financial Regulator's Consumer Protection Code. As required by the Code all customers will be given three months notice of branch closures.

I am advised by the Financial Regulator that mortgages, personal loans and fixed rate savings with the Bank will operate to maturity. Bank of Scotland (Ireland) has advised that customers do not need to do anything at this stage. The Bank's Commercial Banking and Corporate Banking operations are unaffected by this development. Bank of Scotland (Ireland) began writing to all customers by the end of February 2010 to set out how the changes will affect them and to explain the next steps that they may need to take. The implications will vary depending on the type of account or product consumers may hold and the Financial Regulator would recommend that consumers read the details very carefully.

As regards customers wishing to switch bank accounts, the Irish Bankers Federation has in place a "Personal Account Switching Code". The purpose of the Code is to make the process of switching personal accounts from one institution to another easier for consumers. The Code is monitored for compliance by the Financial Regulator. Where consumers are switching their current account, they should contact the bank they wish to switch to (the new bank), and that bank will have all the documentation required and will make the switch on behalf of the consumer.

In relation to credit card bills and bank loans, customers may switch to alternative providers where such options are available. I understand that if a customer is not in a position to clear or switch a credit card balance by the closure date, the customer can call into their local branch or phone the Customer Service Centre to discuss and agree alternative repayment options. Bank loans will continue in accordance with the agreed term of the loan except in cases where the customer decides to repay such facilities early.