Although generally we have good reason to be dubious about self regulation, this time we would like to give it a chance. The provisions proposed by the Common Principles could, for consumers in many Member States, represent a simple and flexible tool to switch banks. Also, we appreciate the efforts made by EBIC to finalise the code in times of financial crisis. Unfortunately, although the Common Principles will facilitate switching of bank accounts with their payment services (credit transfer and direct debit), they will not cover bundled and tied banking products (where consumers are obliged to buy several financial products from the same bank: for example, having a bank account and a mortgage credit together). This will certainly continue to pose a problem for consumers until an initiative is taken to put an end to it.
BEUC and our members across the EU will keep a watchful eye on how the code is working in practice, and whether consumers finally encounter fewer barriers than is the case now. Monique Goyens, BEUC Director General, stated: "This is a first step. Banks have to prove their
code will work and make it really easy for consumers to switch banks. Our member organisations throughout Europe will be watching closely to check that banks play by their own rules. We also call on the Commission to deal with the second step: the prohibition of bundled and tied financial products".
