On 23 November 2019, AS LHV Pank (hereinafter LHV) acquired in the form of a business transfer the Estonian private client credit portfolio that belonged to Danske Bank A/S (hereinafter Danske), the loan, lease and collateral agreements belonging to the portfolio and other related agreements.
The terms and conditions of the agreements will not change as a result of the transfer. However, as of 23 November 2019, the transferred agreements will be subject to the general terms and conditions and the price list of LHV (available at LHV’s website at www.lhv.ee) and new personal accounts to which payments must be made to fulfil credit agreements.
Credit recipients and their co-applicants can obtain information on their new LHV account to which they must make payments under their credit agreements from the notification sent to them. The present credit servicing account in Danske will remain open until the end of the transition period, i.e. 31 December 2019, but we ask clients to pay their loan payments into the new account in LHV. Any prepayments to the credit servicing account and payments accrued thereon before 31 December 2019 are automatically transferred to LHV.
Danske eBank will remain open for limited use until 31 December 2019. After this date, the electronic services agreement is deemed terminated and Danske eBank will be closed.
Transfer of collateral agreements
All existing collaterals to credit and lease contracts and all collateral agreements have been or will be transferred to LHV and will remain in force under their existing terms and conditions and secure the obligations arising from transferred credit agreements. Clients do not have to do anything in relation to the transfer of collaterals or pay any expenses related thereto.
Mortgages have been established in favour of Danske Bank which have been entered in the Land Register but are no longer collateral to effective credit agreements. Danske Bank A/S Estonia branch is discharging the mortgages that no longer secure outstanding credits and against which no claims have been made. We have submitted or will soon submit applications for discharging the mortgages via a notary. The owner of the registered immovable does not have to do anything or pay any expenses in relation to this, as Danske Bank will cover the costs related to the discharge of the mortgage.
Transfer of objects of lease
If a client has entered into a lease agreement with Danske, LHV will now be the lessor and the owner of the object of lease. If the object of lease is in the Traffic Register of the Road Administration, the change of owner will be registered in the register soon. The owner of the assets will change upon the transfer of lease agreements and therefore vehicles are provided with new registration certificates. New registration certificates can be obtained from LHV’s Tallinn office from 2 December.
The insurance policy of the collateral or the object of the lease agreement will remain valid until the expiry date of the policy. We will inform the insurers of the new beneficiary. If a client has an effective collateral insurance contract, this is also passed on to LHV and insurance premiums must be paid to the aforementioned personal account in LHV. LHV Pank must be indicated as the beneficiary when a new insurance policy is taken out.
If you have any questions about credit, lease or collateral agreements or future payments, please contact LHV:
Private Loan Customer Support
+372 699 9111 (9:00-17:00 Monday to Friday)
Answers to frequently asked questions can be found HERE.