Newly implemented principles to facilite bank account switching in EU

Consumers in the European Union can now benefit from the "Common Principles for Bank Account Switching" implemented by the national banking associations in each member state from Nov. 1.

The principles, adopted last year by the European Banking Industry Committee, aim at facilitating the process of switching an account from one bank to another within their member state.

"I am pleased that national banking associations have taken their self-regulatory agreement seriously ... We will be extremely vigilant to ensure that these Principles are effectively applied on the ground," said Charlie McCreevy, the commissioner for the internal market and services.

These principles regulate that if a consumer wishes to change banks, the new bank will act as the main coordinator and offer its assistance throughout the process.

The new bank will deal with the previous institution, ensuring that the transfer of the client's recurrent payments, such as direct debits and standing orders, are done smoothly and rapidly.

The new bank also will assist the consumer in closing the old account and transferring the remaining balance to the new one.

Source:Xinhua