Uswitch comments on CMA announcement that Bacs will deliver improvements to the Current Account Switch Service

Commenting on the announcement from the Competition and Markets Authority (CMA) that it has accepted undertakings from Bacs Payment Schemes Ltd (Bacs) to deliver the improvements required by the CMA retail banking market investigation within a year, Richard Neudegg, head of regulation at Uswitch.com, says: “Bacs and the CMA have made good progress in building on the initial success of the Current Account Switch Service, which will  help ensure that current account holders are better informed when it comes to making a decision about where to bank.

“A longer period for payments to be redirected to the new account will build further trust in the service, especially given the straightforward process of switching your current account. The challenge remains in providing consumers with the information they need to better understand what their current account is actually costing them.

“The commitment to provide a decision on overdraft provision before switching is an important step in enabling customers to make the right choice for their circumstances. Consumers who are heavily dependent on their overdrafts are less likely to switch without a guarantee that they will get a similar deal with their new provider. Worryingly though, two thirds of current account holders don’t know whether they can switch at all when they are overdrawn, so this is another important hurdle for Bacs to tackle.

“With more than half of current account customers using the same bank for over ten years, we hope that this and the wider package of CMA remedies will continue to improve a traditionally stagnant market. The good news is that with an increasingly simple to use switching system, consumers will be better equipped to manage their finances and make the most of where they keep their money.”

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FOR MORE INFORMATION

Rory Stoves

Phone: 020 3872 5613

Email: rory.stoves@uswitch.com

Twitter: @UswitchPR

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