Glossary of General Terms

This glossary is to help you understand information you may have received in correspondence from us. We will try to explain things clearly and simply.

What this glossary does not do:

• We do not attempt to give legally accurate definitions of words and phrases.
• This glossary is not legal or financial advice. If you need legal or financial advice, you need to ask your solicitor or financial adviser.
• This glossary does not have any effect on any terms and conditions.
• It does not change any information we give you about our products.

Affordability

Affordability means how much you can afford to repay on a loan, like a mortgage, credit card, or personal loan. When you apply for a loan, we check your income, savings and spending to understand if you can afford to make the repayments.

Annual Percentage Rate (APR)

APR (Annual Percentage Rate) is the yearly cost of borrowing money, shown as a percentage. It includes the interest you pay plus extra fees and charges.

It helps you understand the real cost of a loan or credit card because it combines interest and fees into one number. This makes it easier to compare different offers. If you only look at the interest rate, you might think a loan is cheaper. But if the fees are high, the APR will show the real cost. In general, the APR is better for comparing loans or credit cards.

Arrears

These are missed payments on a loan or credit agreement. In other words, they are payments or amounts that are overdue. If you are “in arrears,” it means you are behind on your payments. The money that is overdue. It can also include interest on the overdue amounts.

Bank Identifier Code (BIC)

This is a unique number that identifies your bank. It is the code needed, together with your IBAN (International Bank Account Number), to send and receive electronic international payments.

Credit report

A credit report shows details about your borrowing history so that lenders can see how you manage credit, such as loans, mortgages and credit cards. This is produced by the Central Credit Register (CCR).

Default

When a person does not make a payment they agreed to, such as a loan instalment or interest. Default usually happens when payments are missed for a certain period.

Direct debit

An arrangement that allows a company or organisation to take money directly from your bank account on agreed dates. It is often used for regular payments like bills, subscriptions, or loan repayments. You give permission once, and the payments happen automatically.

Fraudulent transaction

A payment or transfer of money that is done illegally or dishonestly. It usually happens when someone uses another person’s account, card, or details without permission to steal money or buy goods. This can happen if your card details have been compromised or your card has been lost or stolen.

Insolvency

Insolvency means that a person or business cannot pay their debts when they are due. For example, it can refer to a customer who cannot meet loan or credit card repayments.

Interest rate

The percentage that a lender charges when you borrow money, or that a bank pays you when you save money. It shows the cost of borrowing or the reward for saving, usually calculated on the amount of money for a set period (often yearly).

A fixed interest rate stays the same for the whole or some of the term of a loan or savings product. It does not change even if market rates go up or down. A variable interest rate can change during the term of a loan or savings product. It usually moves up or down based on market conditions or a reference rate (like a central bank rate). This means your payments can increase or decrease over time.

Intermediary

A person or company that acts as a middle link between a customer and a financial provider. They help arrange financial products like loans, insurance, or investments but do not provide the money themselves. Examples include brokers and agents.

International Bank Account Number (IBAN)

This is a long, unique number for your bank account. It is used with your Bank Identifier Code (BIC) for international payments and on its own for payments in the Republic of Ireland.

Monthly repayment

The amount of money you pay each month to reduce a loan or credit balance. It usually includes part of the money you borrowed (the principal) and the interest charged. Some repayments may also include fees.

PIN

PIN stands for Personal Identification Number. For example, this is the four-digit number that you enter into a cash machine when you want to take out cash, or that you use when you make a payment with your credit card.

SEPA

SEPA (Single Euro Payment Area) is a system that makes it easy to send and receive euro payments across European countries. It is just like making bank payments here in the Republic of Ireland.

Stamp duty

Stamp duty is a type of tax you pay to the government. In the Republic of Ireland, the government charges stamp duty on credit cards.

Terms and conditions

Terms and conditions make up the contract between a bank or other company and its customers. For example, they set out the rights, responsibilities, and obligations of both you and the lender in a credit agreement.

Unauthorised transaction

An unauthorised transaction is a payment that you did not make or approve. If your card is used without your consent, please call us on this freephone number 1800 286262 or +353719594040.