Switching your current account will be much easier for UK customers in September after new rules come in to effect. The Payments Council has finalised the details on new rules, which will mean that participating banks will have to help you to transfer your bank account in under 7 days hassle free. At the moment the current process of switching your bank can take from 18 to 30 days.
The new standard – the Current Account Switch Guarantee will be a standard that banks can adhere to that will give consumers more confidence in changing their accounts to another bank. Consumers are often weary of changing their banks even though they are often unhappy with the service because of the fear of disruption and charges during the changeover process.
Under the new rules, the banks will have to cover the cost of any charges by themselves or the old bank if there are issues with any payments, such as standing orders and direct debits during the changeover process.
Banks are keen to make it easier for customers to join their fold, as it benefits them greatly not just with the account but the accompanying long and short term loans, overdrafts and credit cards that often follow.
Banks should all try to adhere to the new rules to be able to display that they do so that they are not left behind by their rivals looking to attract the customers. At the moment over a million people switch bank accounts every year. It is not known, even by the Payments Council to what level of impact the new rules will have. The Payday Council has said that it should make the banking industry much more competitive, which can only benefit the customers.
Image credit:Alex Liivet