Banks 'to be given seven days to switch accounts'

By Daniel Culpan

From September 2013, banks will be given a strict seven-day deadline to switch a customer's bank account to another institution, This is Money reports.

The new rules mark the latest attempt to make it easier for banking customers to switch. Measures are also set to be put in place to guarantee that regular payments into and out of a customer's account don't get lost when they open a new account elsewhere.

According to the article, of the 1.35 million people who actually moved their current account last year, about 121,500 said the process wasn't easy. Some found the process itself complicated, while others faced delays and missed payments.

The Government and city regulators want to encourage people to switch their bank account in the hope that it will create more competition and lower the current cost of banking.

Furthermore, they believe that confusion over the current switching process - which usually takes a minimum of 18 days - is putting people off moving their bank account more often.

Tags: banks, bank accounts

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