Switching standing orders or direct debits to a new checking account: Since September 2016, this has no longer been a problem. The regulations serve to protect consumers by promoting competition among banks. But help changing accounts is not always as easy as hoped.
The most important thing in brief:
- Anyone who switches their checking account to a new bank or savings bank must receive help with changing standing orders, direct debits and transfers if they wish. This is regulated by the Payment Accounts Act (ZKG) in its paragraphs 20 and 21.
- But reality shows: the documents are complicated and mistakes sometimes happen.
- In addition: The banks can have the moving assistance paid for.
Changing banks should be easy. If you want to close your checking account and set one up at another institution, both banks will have to help you if you want to. The new account should be ready for use quickly. The law therefore sets precise deadlines for banks.
Some banks and savings banks have already offered such a service voluntarily. The Payment Accounts Act (ZKG) has now made this the standard.
Which institutions and which types of accounts are covered by the law?
All institutions that offer payment accounts for consumers on the market must help with the switch. This applies to savings banks, Volksbanks, commercial banks and also purely online banks. You will know what the law calls a payment account by the name checking account. It doesn't matter whether you keep yours at a branch bank or as a purely online account.
Both banks must also be based in Germany. Both accounts must be in the same currency.
Be persistent if bank employees refuse to help you change money. In such cases, also inform the consumer advice centers.
How to start the change
You can control the change completely from the new bank. Open a new account there and authorize the bank to help you switch accounts. This works using a form in the branch or via the online banking portal.
The new bank must then request the following from the old bank within 2 business days:
- a list of existing standing orders and the available information on direct debit mandates issued,
- a list of available information about incoming transfers and direct debits from the last 13 months.
The old bank must then:
- the requested information within 5 business days to the new bank and to you send,
- Direct debits and incoming transfers from a date specified by you and inform the people and companies who want to withdraw money from your account or deposit money into it why this is no longer possible,
- Standing orders no longer run from a date of your choice,
- remaining credit on your account to the new account on a date of your choice,
- the account on the date you requested close.
