- Latest available (Revised)
- Point in Time (31/12/2020)
- Original (As made)
Point in time view as at 31/12/2020.
There are currently no known outstanding effects for the The Payment Accounts Regulations 2015, Section 26.
Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.
26.—(1) Subject to paragraphs (2) and (3), framework contracts for the provision of a payment account with basic features must comply with the requirements of the Payment Service Regulations.
(2) A designated credit institution may only close a payment account with basic features where at least one of the following conditions is met—
(a)the consumer has knowingly used, or attempted to use, the payment account for illegal purposes;
(b)there has been no transaction on the account for more than 24 consecutive months;
(c)the consumer provided incorrect information when applying for the account, and had the correct information been provided, the application would have been refused;
(d)the consumer is no longer legally resident in the [F1United Kingdom];
(e)the consumer has access to another payment account in the United Kingdom which—
(I)allows the consumer to make use of the services listed in regulation 19(1); and
(ii)was opened after the payment account with basic features;
(f)the credit institution considers that the consumer’s conduct in relation to the credit institution’s staff amounts to the commission of an offence under—
(I)section 4, 4A or 5 of the Public Order Act 1986;
(ii)the Protection from Harassment Act 1997;
(iii)section 38 of the Criminal Justice and Licensing (Scotland) Act 2010 (threatening or abusive behaviour);
(iv)Article 9 of the Public Order (Northern Ireland) Order 1987 (use of words or behaviour or display of written material);
(v)the Protection from Harassment (Northern Ireland) Order 1997.
[F2(g)the payment account is required to be closed in accordance with section 40G of the Immigration Act 2014.]
(3) Subject to paragraph (4), where a designated credit institution terminates a framework contract for a payment account with basic features on one or more of the grounds mentioned in paragraph (2)(b), (d) or (e), the designated credit institution must inform the consumer of the grounds and the justification for termination—
(a)at least two months before the termination enters into force;
(b)in writing; and
(c)free of charge.
(4) Paragraph (3) does not apply where disclosure to the customer of the grounds and justification for the termination would be unlawful.
(5) Any termination in accordance with paragraph (2)(a), (c) or (f) is to have immediate effect.
(6) Where a designated credit institution terminates a framework contract in accordance with paragraph 2(a), (c) or (f), the credit institution must inform the consumer of the grounds and justification for termination without delay except where it would be unlawful to do so.
(7) Any notification given by the qualifying credit institution under paragraph (3) must advise the consumer of—
(a)the procedure for submitting a complaint to it against the termination;
(b)the consumer’s right to make a complaint to the Financial Ombudsman Service; and
(c)the designated credit institution’s relevant contact details.
Textual Amendments
F1Words in reg. 26(2)(d) substituted (31.12.2020) by The Payment Accounts (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/661), regs. 1(3), 3(b) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)
F2Reg. 26(2)(g) inserted (30.10.2017) by The Immigration Act 2016 (Consequential Amendments) Regulations 2017 (S.I. 2017/931), regs. 1, 2(2)
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Point in Time: This becomes available after navigating to view revised legislation as it stood at a certain point in time via Advanced Features > Show Timeline of Changes or via a point in time advanced search.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Explanatory Memorandum sets out a brief statement of the purpose of a Statutory Instrument and provides information about its policy objective and policy implications. They aim to make the Statutory Instrument accessible to readers who are not legally qualified and accompany any Statutory Instrument or Draft Statutory Instrument laid before Parliament from June 2004 onwards.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
Impact Assessments generally accompany all UK Government interventions of a regulatory nature that affect the private sector, civil society organisations and public services. They apply regardless of whether the regulation originates from a domestic or international source and can accompany primary (Acts etc) and secondary legislation (SIs). An Impact Assessment allows those with an interest in the policy area to understand:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: