Basic bank accounts for all
17 Apr 2014 04:03 PM
Anyone legally residing in the EU would have the
right to open a basic payment account, and no-one could be denied this right on
grounds of nationality or place of residence, under a new law passed by
Parliament on Tuesday. This law should also ensure that fees and rules for all
payment accounts are transparent and comparable and make it easy to switch to
another payment account that offers better terms.
"This directive is all about empowering users of
common standard payment services. Guaranteeing access to basic accounts to all
consumers, including to migrants and mobile citizens, will stimulate economic
modernization, facilitate free movement and help the most disadvantaged in our
societies", said lead MEP Jürgen Klute (GUE/NGL,
DE).
The
text was approved by 603 votes to 21, with 51 abstentions.
Open access
Parliament inserted a requirement that basic payment
accounts must be offered by all, or at least enough, credit institutions in any
given EU country to guarantee both - easy access for all and competitive
offers. These offers would not be limited to banks that only provide on-line
services
Anyone legally residing in the EU, even with no fixed
address, would be able to open a basic account. However, member states could
require would-be customers to explain their interest and purpose in opening
such an account in a specific country, provided they fully respect the
customer's fundamental rights and do not make this request too difficult or
burdensome.
Clear Information
The
law should ensure that anyone who opens a payment account is able to understand
its fees and interests rates and to compare account offers – this
information should be clear and standardised across the EU. In each EU member
state, there should be at least one independent website comparing the interest
rates and the fees charged by banks. Banks would also be required to inform
their clients that they offer basic payment accounts.
Characteristics of a basic
account
“Basic” payment accounts would enable
customers to pay in and withdraw cash and execute payment transactions within
the EU, including transactions through a payment card and online. Customers
would be able to execute an unlimited number of such operations, either for no
fee or for a reasonable fee. However, member states may decide that such
accounts should not include overdraft facilities, or to limit the amount of
such overdraft facilities.
Switching accounts to become easier for all
customers
To
benefit from the best offers, customers should be able to switch to another
bank account in the EU for a reasonable fee. Switching between bank accounts in
the same currency and country should be done by a receiving bank at the request
of the account holder or holders, with their authorisation.
All
incoming credit transfers, standing orders and direct debits to be switched
should be identified. Within two business days from the receipt of the
authorisation, the receiving bank should request the transferring payment
service provider to carry out the authorised
tasks.
Banks would be obliged to refund any financial loses
resulting directly from faults in the switching process without
delay.
Next steps
To
take effect, the new rules must be officially approved by the member states,
which will then have 24 months to transpose them into their national
laws.