Ulster Bank has told most of its remaining credit card customers here who had outstanding balances that what they owe is being written off.
The move to close the accounts is happening as a consequence of the bank's exit from the Republic of Ireland market.
Those who had been making monthly repayments in line with the terms and conditions of their accounts will benefit from the decision and there will be no adverse impact on their credit rating, Ulster Bank said.
"Non-performing customers in a payment plan have also been informed their account has been refunded with no adverse impact to their credit rating in relation to the refund," the bank said in a statement.
"We have also written to credit card customers who have missed payments and not engaged with the Bank to date on repaying their outstanding credit card balances."
"These customers have been given 60 days' notice to engage with the Bank to repay their balance or discuss repayment options."
"Should the customer not engage following this communication, their balance will be written-off and there will be an adverse impact to their credit rating (if the credit limit is -€500 or over) which may negatively impact their ability to borrow money or avail of credit facilities in the future."
It is understood that the bank has no cap on the amount it is writing off in the accounts.
Thousands of customers will benefit from the decision, details of which were first reported by the Irish Times.
The bank would not say how much the decision to close the accounts would cost it.
In September of 2022 Ulster Bank gave six months’ notice to its remaining 75,000 credit card holders that it would end the use of their cards in March of last year as part of the wind down of its operations here.
At the time is said customers would not be able to use their credit cards and any recurring transactions set up on one would be cancelled and returned unpaid.
It said it would contact customer who may have difficulty repaying their full balance and offer support to them on a case by case basis.
At the time it also advised customers who had not paid their balance in full by the March 2023 deadline to continue to make repayments each month on any remaining balance in line with the terms and conditions of their credit card agreement to avoid missing a payment and going into arrears.
