New rules relating to access to basic payment accounts, transparency and comparability of bank account fees and bank account switching cannot be justified, was the key message to Internal Markets Commission in a letter earlier this month.
The European Banking Federation believes that some of the proposals in the European Commission Directive are disproportionate to the actual needs.
“The EBF is broadly supportive of granting access to a basic payment account to financially excluded citizens at a reasonable cost but not free of charge as costs should be borne by someone. It is, however, unclear to us why customers who are not to be considered as financially excluded should be given the right to hold such an account when they could access a regular payment account or rely on the Single Euro Payments Area (SEPA) for cross-border transactions”, said Sébastien de Brouwer, EBF Executive Director.
On bank account switching, the EBF argues that the banking industry has already put in place a code that allows bank account switching at domestic level but questions any compelling evidence which shows that there is a need for cross-border account switching mechanisms.