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New rules to make it easier and faster to switch banks
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New rules to make it easier and faster to switch banks
Bank customers will be able to switch accounts with ease under new rules to be hailed today by the Chancellor as a revolution for consumers. In a bid to promote better competition between banks, from September customers will be able to walk into their bank and simply demand for their account to be transferred to a rival. Crucially, the bank will be obliged to transfer a customer’s direct debit payments to the new account – ending the weeks of hassle associated with changing accounts now. That will allow people to shop around and get better interest rates, forcing banks to offer better deals for customers to keep them. Consumer watchdogs repeatedly complain that new customers are wooed with attractive rates of interest, while existing customers are left languishing on low rates. Currently, it takes 10 working days to switch an account from one bank to another, but this will be cut down to five in the autumn.....Read more hereTags: None
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The pledge, together with a kitemark which will be used by all participants when the £750 million scheme is launched in September, was made public by the Payments Council. All major providers have signed up to the new guarantee and trustmark, designed to improve customer confidence when switching current accounts, which currently takes between 18 and 30 days. The key benefits of the switching service are:
• The service is free to use
• The customer can choose and agree the switch date with their new current account provider.......Read more here