Danske hands over loans management to Pepper
Published 17/05/2014 | 02:30
DANSKE Bank has hired loan specialist Pepper to take over day-to-day management of its Irish mortgage and personal loans.
Around 14,000 customers are affected. From June 16, the Australian-owned company, which has an Irish unit based in Shannon Co Clare, will handle all of the loans.
Danske Bank announced last year that it was closing its main retail and business bank in the Republic of Ireland. Current account customers have already been forced to find new banks,
Terms of customers' mortgage and loan contracts are not affected by the deal with Pepper, which will fully take over customer service in relation to the affected loans and mortgages, including specialised case management, it said. Yesterday, a number of its mortgage customers told the Irish Independent that they had yet to receive notification from the bank of the change.
A spokesman for the bank said letters had been sent, however, and any that had yet to arrive to people's homes will do so over the coming days.
Unlike the controversial sale of Irish Nationwide Building Society (INBS) home loans by the liquidators of IBRC, the Danske Bank mortgages are not being sold. Pepper is being hired by the bank to manage the loans and there is no change to customers in terms of consumer protection.
Danske said it awarded the contract to take over the consumer loans and mortgages following a tendering process won by Pepper.
It's the second large contract awarded by Danske to Pepper. Last year, the firm was hired to take over asset management of around €600m worth of business and property loans for the bank, in a deal seen by many as an early sign the Danish lender was looking to exit the market here.
While it is pulling out of most banking activities here, Danske will retain a banking business in the IFSC in Dublin serving large corporate clients.
Pepper manages a growing number of Irish mortgages as both an agent for other banks and other funds and in its own right following a 2012 acquisition of GE Capital's Irish subprime mortgage book.
It was appointed by Lone Star to manage INBS mortgages bought by the US private equity house from the IBRC liquidators earlier this year.
In total, the Pepper manages over €8bn of Irish assets.