Your questions
answered
Bank of Ireland explains its
planned changes to Post Office®
Savings, Credit Card, Travel Money
Card and Mortgage products
1. I’m a Post Office customer, so why have you written to me?
Because Bank of Ireland provides a range of Post Office financial products and you have at least one of these
products. You’ll still be a Post Office customer – we simply want to keep you up to date on changes to the
organisation that provides and administers your Post Office product(s), including any Post Office savings you
may have.
2. What is this all about?
Bank of Ireland is looking to transfer part of its UK banking business, which includes some of the products it
provides to Post Office customers, to a new UK subsidiary called Bank of Ireland (UK) plc.
3. How and when will the transfer happen?
Bank of Ireland is following the transfer procedure laid down in Part VII of the Financial Services and Markets
Act 2000. This means Bank of Ireland has to ask the High Court of Justice (High Court) to approve the transfer.
If the High Court approves the transfer at the hearing scheduled for 21st October 2010, the transfer is likely to
happen on 1st November 2010.
4. Why is there a delay between the court hearing and the transfer?
This is to give Bank of Ireland time to make various arrangements so that the service you receive isn’t affected by
the transfer.
5. Does this mean I should delay proceeding with anything you send me in
the meantime?
No, please continue to operate your product(s) and account(s) just as you normally would.
6. If I’m not happy about the transfer, what can I do?
If you think you will be adversely affected by the transfer, you have the right to have your say (either in person or
through a legal representative with advocacy rights) at the Court Hearing. This is scheduled for 21st October 2010
at The Royal Courts of Justice, The Strand, London WC2A 2LL.
Details of any customer objections lodged with Bank of Ireland will be provided to the High Court. Therefore if you
intend to have your say at the Court Hearing, please write to the Transfer Team explaining why as soon as possible
and preferably before 11th October 2010. You should send your letter to the Transfer Team, Bank of Ireland, PO
Box 27, One Temple Quay, Bristol, BS99 7AX.
If you don’t want to go to the Court Hearing but are concerned in any way about the transfer, please write
to the Transfer Team at the address above as soon as possible, and preferably before 11th October 2010,
explaining your views.
7. Why have I had more than one letter about this?
If you have more than one Post Office product that’s provided by Bank of Ireland, you may get more than one
letter about the transfer. If you have a Post Office Cash ISA, you’ll get another letter too. This is to ensure that all
Post Office customers are made aware of the transfer.
8. Will my terms and conditions change?
No, they won’t. Your Post Office product(s) will continue to be subject to your existing terms and conditions except
that, after the transfer, any references to ‘The Governor and Company of the Bank of Ireland’ in your terms and
conditions will be read as references to ‘Bank of Ireland UK’.
In future, any references in the product terms and conditions to ‘The Governor and Company of the Bank of
Ireland’ will change to ‘Bank of Ireland UK’ but this will only apply to new Post Office products taken out after
the transfer.
9. Will my product features change?
No, they won’t. The interest rates currently applicable to your Post Office product(s) will not change as a
result of the transfer. You’ll also be able to make payments or withdrawals as you do now and contact us in
the normal way.
However, if you have a Post Office savings product, there will be a change in your deposit protection
arrangements. Please see question 11.
10.After the transfer will I still be able to deposit and withdraw money as I
do now?
Of course – you’ll be able to use your account just as you do now. Your account details, including account numbers
and sort codes, will stay the same and you will not need to change any standing order arrangements that you
may have.
11.How does the transfer affect my deposit protection?
Currently, your savings and deposits with Bank of Ireland are protected by the Irish Deposit Guarantee Scheme,
which is a statutory scheme covering deposits up to a limit of €100,000 (£82,853 at current exchange rates on
11th August 2010). In addition, deposits in excess of €100,000 are further protected by an Irish Government topup guarantee scheme until that guarantee scheme expires, as explained on our website
www.postoffice.co.uk/depositprotection.
Following the transfer on 1st November 2010, the first £50,000 of any deposits you hold with Bank of Ireland
(UK) plc will be protected under the UK Financial Services Compensation Scheme (FSCS) in accordance with the
FSCS rules (please see question 12) and in line with other UK banks and building societies. This limit will apply
to the total of all balances you hold in Post Office savings products provided by Bank of Ireland (UK) plc, plus Post
Office Cash ISAs, plus any products provided directly by Bank of Ireland (UK) plc.
In addition to the FSCS the following guarantees will apply:
• any account balances over £50,000 held in an “on demand” deposit account will continue to be fully
guaranteed under the Irish Government scheme until 31st December 2010. This applies to the following
accounts: Instant Saver, Reward Saver, Easy Saver, Variable Rate Cash ISA.
• fixed term deposit accounts opened between 11th January 2010 and 31st December 2010 with a term of
up to five years, or if you had a fixed term deposit that was opened before 11th January 2010 that has since
then been ‘rolled over’ into a new fixed term product with Bank of Ireland after 11th January 2010 for a
term of up to five years, any amount above £50,000 held with Bank of Ireland (UK) plc after the transfer will
continue to be fully protected by the Irish Government top-up guarantee scheme until your deposit matures.
This applies to the following products opened after 11th January 2010: Growth Bond, Loyalty Bond, Fixed
Rate Cash ISA.
If you have deposits in Post Office account(s) or with Bank of Ireland that, in total, are in excess of £50,000
and you are concerned at all about your protection arrangements following the transfer, please call the
Transfer Information Line on 0845 1461513 and a member of the team will be happy to discuss your
circumstances with you.
12.What is the FSCS and what does it protect?
The FSCS is a statutory compensation scheme of last resort for customers of UK financial services firms which
are in default (e.g. if a firm is unable, or likely to be unable, to pay claims against it, has stopped trading and
has insufficient assets to meet claims, or is in insolvency). In such circumstances, the FSCS will afford protection
to eligible depositors to recover a proportion of their savings with defaulting firms. Broadly, the FSCS will pay
compensation equivalent to 100% of the first £50,000 held with the defaulting firm. This compensation limit
applies to the total value of deposits held with the defaulting firm, rather than to each individual deposit. In the
case of a joint account held by two people, the FSCS will afford £50,000 of protection to each account holder
meaning the joint account will be covered up to a limit of £100,000. Details of eligibility under the FSCS rules may
be obtained from the FSCS website at www.fscs.org.uk.
13.Who should I contact if I have any questions about the transfer?
More details about how these changes could affect you following the transfer can be found in the Explanatory
Statement that can be downloaded by going to our website www.postoffice.co.uk/boiuk or a member of the
Transfer Team can post it to you free of charge. Simply call the Transfer Information Line.
Transfer Information Line:
0845 1461513
9.00 am to 5.00 pm Monday to Friday (excluding Bank Holidays)