The details the new current account switching service, due to come into force in September 2013, have emerged today with the launch of a new guarantee for bank account customers looking to change accounts.
The Payments Council, the body that manages payment services in the UK, has unveiled a Current Account Switch Guarantee and Trustmark, which sets out exactly what customers can expect from the switching service.
The details of the guarantee include:
- The service is free to use and is guaranteed
- Your new bank will take care of the movement of all of your payments going in and out
- If you have money in your old account, it will be moved to your new account on the switch date
- For 13 months, your new bank will arrange for payments made to your old account to be directed automatically to your new account
- If anything goes wrong, your new bank will refund any interest paid or lost on either your old or new account as a result of the failure
How will the new switching service work
From September 2013, it will become much easier for customers wanting to switch current accounts from one provider to another. It will take just seven working days to switch accounts using the new service, instead of the 18 to 30 days it currently takes.
All current account providers’ will display play the Trustmark sign, which will include all the benefits the Current Account Switch Guarantee provides. This will be included on all advertising from the launch of the new service, and will be similar to the Direct Debit logo that can be found on most of your bills.
Why is faster switching so important?
Which? believes that a simpler switching process is vital to creating greater competition in the banking market, and will empower consumers to vote with their feet if they experience poor service.
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