News
Back58 million people in the EU do currently not have access to a giro account of their own. Until now, banks refused to let customers with a poor credit history open an account or they closed existing accounts, if a customer’s financial standing deteriorated – sometimes with serious consequences. In most cases, a private bank account is required for employment or a rental agreement. The European Parliament has now decided in favour of a basic account for all, a fact that is welcomed by the AK.
MEPs in the plenum of the European Parliament (EP) voted for the right to a basic account for all people who are legal residents in the EU. The draft bill was accepted with an overwhelming majority (603 votes for, 21 votes against and 51 abstentions).
The basic account shall cover the following services: paying in and withdrawing money as well as making bank transfers within the EU. The option of granting an overdraft will be decided by the Member States themselves.
Whilst the AK requested that all banks have to provide a basic account, the European Parliament decided that the basic giro account must only be provided by a sufficient number of banks in the respective Member States. Member States have to ensure that this service is not only provided by online banks.
It is positive that the law shall ensure that consumers will receive transparent information on bank charges and interest rates. This information shall be standardised throughout the EU. Apart from that, banks shall be obliged to inform their customers of their offer of a basic account.
Further information:
AK Position Paper
The basic account shall cover the following services: paying in and withdrawing money as well as making bank transfers within the EU. The option of granting an overdraft will be decided by the Member States themselves.
Whilst the AK requested that all banks have to provide a basic account, the European Parliament decided that the basic giro account must only be provided by a sufficient number of banks in the respective Member States. Member States have to ensure that this service is not only provided by online banks.
It is positive that the law shall ensure that consumers will receive transparent information on bank charges and interest rates. This information shall be standardised throughout the EU. Apart from that, banks shall be obliged to inform their customers of their offer of a basic account.
Further information:
AK Position Paper