The Payment Accounts Regulations 2015

PART 3 Switching

Provision of the switching service

14.—(1) A payment service provider must offer a switching service between payment accounts that are—

(a) denominated in the same currency; and

(b) opened or held with a payment service provider located in the United Kingdom.

(2) A switching service must meet the requirements set out in Schedule 3, except where regulation 15 applies.

Alternative arrangements

15.—(1) This regulation applies where a payment service provider is a party to and compliant with the requirements of a switching service which the Payment Systems Regulator has designated as an alternative arrangement.

(2) In order to be designated as an alternative arrangement, the Payment Systems Regulator must be satisfied that the switching service —

(a) is clearly in the interest of the consumer;

(b) does not impose upon the consumer any burden additional to those imposed by paragraphs 2 to 6 of Schedule 3;

(c) ensures that the procedure for switching is completed at least within the same overall time-frame that applies in the case of a switching service that meets the requirements of paragraphs 2 to 6 of Schedule 3.

Designation of alternative arrangements etc.

16.—(1) Schedule 4 makes provision in connection with—

(a) the designation of alternative arrangements; and

(b) the powers of the Payment Systems Regulator over operators of switching services designated as alternative arrangements.

(2) Schedule 5 makes provision in connection with—

(a) fees connected with an alternative arrangement;

(b) compensation for financial losses incurred by consumers switching accounts under an alternative arrangement; and

(c) information relating to an alternative arrangement that a payment service provider must make available to consumers.

Facilitation of cross-border account opening for consumers

17.—(1) Where a consumer indicates to a payment service provider located within the United Kingdom with whom that consumer holds a payment account (“the UK payment service provider”) that the consumer wishes to open a payment account with a payment service provider located outside the United Kingdom, but within the European Union, (“the EU payment service provider”), the UK payment service provider must, by a date specified by the consumer—

(a) provide the consumer free of charge with—

(i) a list of all currently active standing orders for credit transfers and debtor-driven direct debit mandates, where available; and

(ii) available information about recurring incoming credit transfers and creditor-driven direct debits executed on the consumer’s payment account in the previous 13 months;

(b) transfer any positive balance remaining on the payment account held with the UK payment service provider to the payment account opened or held by the consumer with the EU payment service provider; and

(c) without affecting the requirements of regulation 43(1) (termination of framework contract) of the Payment Service Regulations, close the payment account held by the consumer with the UK payment service provider.

(2) The date specified by the consumer referred to in paragraph (1) must be at least six business days after the UK payment service provider receives the consumer’s request, unless otherwise agreed between the consumer and the UK payment service provider.

(3) The requirement in paragraph (1)(b) is only to apply where—

(a) the consumer has—

(i) requested that the transfer be made;

(ii) provided full details of the account opened or held with the EU payment service provider; and

(b) there are no outstanding obligations on the account.

(4) Where outstanding obligations prevent the UK payment service provider from closing the payment account in accordance with paragraph (1)(c), it must without delay inform the consumer.

(1)

Regulation 43 was amended by S.I. 2009/2475.