What should I do if my bank disappears?
When a financial institution merges or it is absorbed by another one, the consequences also affect its clients. If you are one of those clients, you should know that:
- Account numbers will change. The new bank must inform you about this change and manage any direct debit payments or mandates you may have.
- If your usual office closes, the new bank must inform you about which one you should now go to, and also take care of all the necessary procedures for the change.
- If you have indefinite duration product contracts (an account, for instance), the new financial institution may change the conditions. If the new conditions are more favourable for you, they may be immediately applied. However, if new conditions are unfavourable, the new bank should inform you with a minimum two month notice, allowing you to cancel the contract at no cost, should these new conditions not satisfy you.
- If you hold an account or deposit with each of the banks implied in the merger, the 100.000 euros guarantee per holder and per bank would be reduced, since one of the banks will disappear and therefore the Deposit Guarantee Fund would not apply. Therefore, you should always consider if your total available balance exceeds this limit.
- For products with a specific expiry date, conditions are usually kept unchanged during the product term. Upon maturity, the new bank may change renewal conditions. However, for loan and mortgage contracts you will continue paying the debt to the new bank, as usual.