20 years together

November 2009

01 November 2009

An Agreement between banks – members of the Association оf Banks in Bulgarian (ABB) for personal bank accounts switching has entered into force on November 1, 2009. It has been concluded in compliance with the Common principles on Bank Account Switching of the European Banking Industry Committee. The main purpose of the Agreement is facilitation of the bank account switching procedure for clients of banks, associated to the Agreement. The ABB has announced that three banks – Bulgarian Development Bank, ING – Sofia branch and BNP Paribas shall not apply the new standards presented with the Agreement in view of the lack or the very insignificant number of personal bank accounts.

The Agreement shall be applied only to personal bank accounts related to periodical direct debits, orders for periodical credit transfers and incoming periodical credit transfers. The Agreement does not regulate bank accounts related to credit services, investment services, credit cards usage, or accounts that are distrained or have negative balance.

Bank account switching presents an opportunity to clients to switch a bank account opened in an old bank to another one in a new bank by transferring the old payments to the new account. The procedure begins with the opening of a personal bank account in the new bank and filing a request by the client for bank account switching. The new bank should provide complete assistance to the client in order to facilitate the procedure in shortest terms by means of informing and advising the client, mediating with the old bank, notifying the third parties of the new information concerning the bank account, etc.

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