Local banks adopt common principles for account switching

The local commercial banks have adopted a Code of Common Principles for bank account switching, pursuant to the publication of these principles by the European Banking Industry Committee and their endorsement by the European Commission last December.

The common principles ensure that switching of domestic personal current accounts is not onerous to consumers and that their mobility shall not be constrained by any unnecessary delay or cost, or by lack of support from their banks. The Common Principles also increase customers’ awareness of the switching-related services they can expect, and aim at reducing consumers’ apprehensions with respect to bank account switching.

The common principles lay out that:

• Banks will provide consumers who want to switch their current account to another bank with clear and complete information.

• “New” and “former” banks commit to facilitating smooth and timely switching, notably as regards recurrent incoming and outgoing payments related to a current account. Conditional on the involvement of third parties, “new” and “former” banks commit to completing their assigned tasks within seven working days.

• The consumer can use the “new” bank as the Primary Contact Point during the switching and in order to arrange the transfer of relevant information from the “former” bank.

• The “new” bank offers to inform creditors on behalf of the consumer on the changed account details

• Consumers will have free access to relevant general and personal information readily available at banks. Fees linked to another switching related services (if any) will be transparent and in line with costs involved.

Consumers who have a complaint about participating banks’ compliance with these principles shall have access to the Consumer Complaints Unit within the Malta Financial Services Authority.

A copy of the Common Principles for Bank Account Switching can be obtained from any branch of APS Bank Ltd, Banif Bank (Malta) p.l.c., Bank of Valletta p.l.c., HSBC Bank Malta p.l.c., Lombard Bank Malta p.l.c. and Volksbank Malta Ltd. The principles are also available on these banks’ websites, as well as on the websites of the Malta Bankers’ Association www.maltabankers.org and the MFSA’s Consumer and Complaints Unit www.mfsa.com.mt/consumer .