From 1 November 2009 it has become easier for consumers to switch their current account from one bank to another in Luxembourg. On this date the ABBL implemented the “Common Principles for Bank Account Switching”, adopted by the European Banking Industry Committee (EBIC).
Consumers are free to transfer all or part of their banking relationship to a different bank. They can choose their new bank as a primary contact, meaning that this bank will act as intermediary between the consumer and their old bank as well as their creditors.
On the basis of the EBIC principles, the ABBL elaborated a guide on switching bank accounts, which explains to consumers the necessary steps to be taken when transferring recurrent payments, that is standing orders and direct debits, from their old bank to their new bank, as well as explaining by whom the various steps have to be taken and within which timeframe.
The old bank is expected to provide all available information about the consumer’s recurrent payments within seven working days upon receiving the request from the consumer her/himself or from the new bank.
The new bank will then set up recurrent payments on the new account within seven working days after receiving the necessary information, and will assist the consumer in informing third parties about her or his new account details.
If the consumer demands it, the old bank closes the old account and transfers the remaining balance.
The services described in the guide are free of charge.