Tilskipun um greiðslureikninga (Payment Accounts Directive (PAD)) - 32014L0092

WHAT IS THE AIM OF THE DIRECTIVE?

It aims to tackle 3 main issues:

• access to basic payment accounts¹,
• transparency and comparability of payment account fees, and
• bank account switching.

KEY POINTS

Access to bank accounts

• The law says that consumers legally resident in the European Union (EU) have the right to open a payment account with basic features in any EU Member State. However, a person wishing to open such a bank account should always comply with EU anti-money laundering rules.
• A basic bank account includes various services such as cash withdrawals at a bank counter or cash machines and the execution of payment transactions such as direct debits or credit transfers within the EU.

Clear and comparable bank account fees

The law provides for several tools to make fees clearer for consumers. For instance, it requires that in each Member State there is at least one independent website that compares payment account fees that are charged by different banks.

Bank account switching services

• The rules establish a quick procedure for consumers who want to switch their account from one bank to another in the same Member State. The switch has to be conducted by the recipient bank. The banks bear the costs of any financial loss in the event of errors made in the process.
• When a consumer wants to switch accounts between two Member States, the bank hosting the account which will be closed must assist in the process.

FROM WHEN DO THE RULES APPLY?

The directive had to be transposed into national law by 18 September 2016.

BACKGROUND

• Not all EU citizens have easy access to a bank account, even though this is essential in modern life. This EU law improves the situation by giving them the right to open a basic payment account anywhere in the EU, and improves the transparency of bank account fees as well as the process of switching accounts.
• For more information, see:
  • Access to bank accounts (European Commission).

KEY TERMS

1. Basic payment account. Under this directive, it includes the following:

MAIN DOCUMENT

Directive 2014/92/EU of the European Parliament and of the Council of 23 July 2014 on the comparability of fees related to payment accounts, payment account switching and access to payment accounts with basic features (OJ L 257, 28.8.2014, pp. 214–246).