Guarantee for ‘hassle-free’ switching issued - Banking - News - Moneyfacts

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Guarantee for ‘hassle-free’ switching issued

Guarantee for ‘hassle-free’ switching issued

Category: Banking

Updated: 11/06/2013
First Published: 11/06/2013

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The Payments Council has published its Current Account Switch Guarantee and Trustmark, designed to provide reassurance and confidence to customers when switching their bank accounts.

The Guarantee and Trustmark outline six key principles which current account providers must adhere to as part of the new Current Account Switch Service due to be launched in September this year.

Under the new service, all providers will be required to take no longer than seven working days to process a customer's current account switch and display the Trustmark in all advertising literature alongside an eye-catching logo.

The current process can take between 18 to 30 days.

The Guarantee and Trustmark list the following principles which banks and building societies must provide to consumers:

  • The service is free to use and you can choose and agree your switch date with us.
  • We will take care of moving all your payments going out (for example, your Direct Debits and standing orders) and those coming in (for example, your salary).
  • If you have money in your old account, we will transfer it to your new account on your switch date.
  • For 13 months, we will arrange for payments accidentally made to your old account to be automatically redirected to your new account. We will also contact the sender and give them your new account details.
  • If there are any issues in making the switch, we will contact you before your switch date.
  • If anything goes wrong with the switch, as soon as we are told, we will refund any interest (paid or lost) and charges made on either your old or new current accounts as a result of this failure.

Adrian Kamellard, chief executive of the Payments Council, said: "Giving customers the confidence to switch current accounts is one of our main goals and the new Guarantee and Trustmark launched today should really help achieve this regardless of whom you switch to or from.

"It sets out in simple terms what you should expect and how long it will take, with the added peace of mind that should anything go wrong your new current account provider is responsible to you for putting things right," he said.

What next?

Find out how to choose the best bank account by reading our guides to help you open and manage your bank account
What is a Direct Debit?
Bank Accounts – Key Factors to Consider

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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