Payment Accounts Directive published.

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On 28 August 2014, the text of the Payment Accounts Directive (2014/92/EU) was published in the Official Journal of the EU (OJ).

The Directive was adopted by the European Parliament and the Council of the EU on 15 April 2014 and 23 July 2014 respectively. The PAD comes into force 20 days after publication in the OJ (that is, on 17 September 2014).

Member states must transpose the PAD into national law by 18 September 2016. There are a number of exceptions to this, including that Article 3 of the Directive will apply from 17 September 2014.

The PAD aims to provide a basic level of banking services for all by:

  • making it easier for consumers to compare the fees charged on payment accounts by banks and other payment service providers in the EU;
  • establishing a simple and quick procedure for consumers wishing to switch their payment account to one with another payment service provider; and
  • providing all EU consumers, without being residents of the country where the credit institution is located and irrespective of their financial situation, with a right to open a payment account that allows them to perform essential operations, such as receiving their salary, pensions and allowances and paying utility bills.