The competition regulator has been urged to insist that Bank of Ireland services the mortgages it plans to acquire from KBC Bank Ireland through an independent subsidiary, as part of the conditions of any approved transaction.
KBC, earlier this year, followed Ulster Bank in announcing its intention to exit the banking market in the Republic.
Last month, Bank of Ireland entered into a binding agreement with KBC for the acquisition of €9.2bn worth of loans and €4.4bn worth of deposits.
In a submission to the Competition and Consumer Protection Commission (CCPC), consumer advocacy body Askaboutmoney.com has insisted the deal’s approval should rely on Bank of Ireland hiving off the KBC loans to a subsidiary and doing away with cash-back mortgage deals in a bid to boost competition in the mortgage market.
“Bank of Ireland has among the highest mortgage rates in Ireland and can only attract new mortgage customers by bribing them with cash back,” said Askaboutmoney.com founder Brendan Burgess.
“They also don’t allow existing customers to avail of all the rates on offer to new customers.
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