Our proposals on the Directive on basic payment accounts

In May the Commission published a proposal for a directive on basic payment accounts. In July we welcomed the EP rapporteur's draft report (Jurgen Klute MEP), as among other things it strengthens provisions that should ensure access to basic bank accounts to vulnerable consumers (see previous weekly update). At the end of August we sent our proposal for amendments to the Commission's text. 

This Directive is meant to make it easier for consumers to compare the fees charged for payment accounts, to set up a simple and quick procedure for consumers to switch from one bank account to one with another provider, and to ensure EU consumers have the right to open a basic bank account irrespective of their place of residence and of their financial situation. 

Our proposal for amendments aims to broaden the scope of the Commission’s proposal and to give the right to open a basic payment account to people who are financially excluded: in particular homeless people with a post address (e.g. of a shelter for homeless people), third country nationals that are studying in the host country, or working and waiting for the renewal of their residence permit, or awaiting the outcome of their asylum and/or migration application. Furthermore, it is necessary to underline the risk of discrimination based on financial situation or history of debts. According to the wording of the Commission’s text, all these groups of users are prevented in opening a basic payment account. This is a contradiction with one of the objectives of the directive itself: giving the right to people who are financially excluded to open a basic payment account, as first step for them towards financial inclusion (to know more, read our position paper on financial inclusion).

In addition, our proposals aim to improve information for users that are refused a basic payment account (the concrete reasons for the refusal have to be explicitly stated in writing), as well as information about free of charge or low-priced legal advice or counseling services that are accessible in the respective Member State.

Members can read our proposal for amendments.