The Government has issued a warning to thousands of social welfare recipients about the action they need to take to “avoid disruption” with their upcoming payments.
It comes as Ulster Bank and KBC Bank are leaving the Irish market, forcing customers to open accounts with other banks.
Social welfare recipients in Ireland have been urged by the Government to update their details as soon as possible.
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Those who receive the State Pension or Child Benefit payments into an Ulster Bank or KBC Bank account will need to make alternative arrangements for where their money goes. This can be into an account with a different bank, a post office account or a credit union account.
A statement on Gov.ie, the Government’s platform for information and services, said: “If you get a social welfare payment such as Child Benefit or State Pension into an Ulster Bank or KBC Bank account, you will need to make arrangements to have your payment paid into another bank, post office or credit union account.
To do this, the “easiest way”, according to the Government, is to use their online service through MyWelfare.ie.
“To avoid disruption to your social welfare payment, please update your details before closing your Ulster Bank or KBC Bank account,” the statement continued.
Despite the banks’ plan to move out of the Irish market, just 44% of their customers have opened new accounts with a different bank, according to research from the Competition and Consumer Protection Commission.
Their research shows that 81% of KBC and Ulster Bank customers have the intention to make the move, but less than half have done so yet.
Ulster Bank customers were also more likely to have switched banks in comparison to KBC customers.
Of those who had opened new accounts, the majority found that “moving direct debits and regular payments” was the biggest challenge.
As a result, the CCPC has put together a guide on moving direct debits, which includes the steps of listing your direct debits, creating a contact list, confirming the transfer process, plan your switching dates and trying to keep money in your account.
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