Consumers to Switch Bank Account-Provider within a Week

Consumers to Switch Bank Account-Provider within a WeekThe Payments Council announced a service to enable consumers to switch their bank account-provider within a week. The new rules will come into effect as early as the end of September.

The move has high potential to shake up the retail banking market and encourage competition. It currently takes 30 days to transfer an account to a new provider. According to campaigners, 30 days time to transfer to a new provider deters consumers from shopping around.

The new rules are welcomed by consumer groups. However, they said that more could have been done by the banks to better the switching plight of consumers.

Switching incentive price was soared from £100 to £125 by First Direct this week, whereas Halifax offers new customers £100.

Richard Lloyd, the executive director of consumer campaign group, said, "All banks need to be giving customers a reason to switch to them by offering -better products and customer service, and by making it simple for people to compare the cost of running a current account".

Michael Ossei, personal finance expert at uSwitch. com, said that the move could be seen as a positive approach by the banks to attract consumers, but their research reveals that one in three say they would not switch their current account for cash incentive.