IT’LL BE easier than ever to switch to a new current account when new rules come into force in September.
Banks and building societies will be forced to ensure that switches are completed within seven working days under the Payments Council’s planned current account switching protocol. It currently takes around 18 working days.
They will also have to automatically switch incoming payments to the new account and provide a guarantee that customers won’t lose out in the event of any problems with the transfer.
Around a third of bank customers told a YouGov survey that they would be more likely to switch to a different provider if the process were made simpler.
There have already been improvements to the system in recent years, however.
As it stands, all you need to do after choosing where you’re switching to is go to that bank or building society’s branch with a photo and a utility bill or up-to-date bank statement to prove identity and address.
If you want an overdraft you’ll also need to take the last three or six months of bank statements to prove that you’re capable of managing your account sensibly.
The responsibility then lies with the new bank to contact the current provider and arrange for your regular payments to be transferred across. It will agree a date with you to switch the balance on your account.
You should receive your new debit card, PIN and other details before the old account is closed to ensure that you have access to your money.
One of the main barriers to switching is the fear of losing money if something goes wrong during the process. However, banks are already obliged to ensure that customers aren’t left out of pocket if there’s a timing problem with the transfer of direct debits or salary payments.
