Basic payment account

The legal right to a basic payment account under the Payment Accounts Act has made a significant contribution to enabling all consumers to participate in economic and social life without restrictions. In general, consumers have since then been able to open a basic payment account without particular difficulties. If banks wrongly refuse such a request, BaFin's administrative procedure has proved to be a simple and quick mechanism for consumers to enforce their right under the Payment Accounts Act.

As part of its supervision, BaFin also investigates whether banks meet their obligation to agree reasonable fees for basic payment accounts. If BaFin finds pricing that is unreasonable, it can instruct a bank to bring its fee model in line with the legal requirements. The Payment Accounts Act specifies two criteria for assessing whether fees are reasonable: standard market fees and user behaviour.

Help with switching accounts and fee transparency

Since September 2016, payment service providers have had to help consumers with switching accounts if they request this. Consumer submissions to BaFin showed that, at first, there were sometimes delays in switching accounts. The reason was that payment service providers initially had difficulty with the new processes. Another factor was that misunderstandings arose among consumers because the form the law requires to be used is very detailed. However, the account switching process is now largely running smoothly. While an average of 12 consumer complaints per month on help with switching accounts were received in 2016, the monthly average in 2017 was 4.8.

The fee transparency regulations will enter into force on 31 October 2018, making it easier for consumers to compare the costs incurred for account services with reasonable effort. Institutions will from then on have to provide standardised, easy-to-understand information on these services.