Account SwitchingIn September this year a massive change is being introduced that will help any customer, small business or small charity that wants to switch their current account from one provider to another, backed up by a customer guarantee.
To help encourage individuals, charities and businesses to switch current accounts, one of the key recommendations made by the Independent Commission on Banking in 2011 was the establishment of a new current account switching service. Their recommendation built on proposals already put forward by the Payments Council and has since been accepted by the Government. The Payments Council has committed to make bank account switching easier for customers – both consumers, small businesses and charities.
The project’s objectives include:
providing an account switching guarantee that customers can rely on
reducing the amount of time it takes to switch an account from around 18 days to seven working days, and
automatically switching incoming payments to the new account.
Simpler account switching will increase further competition within the UK banking sector and improve transparency for customers. The Payments Council has committed to deliver this new service in September 2013.
Further updates regarding the Payments Council’s progress on this project will be made in due course.