Customers who want to switch from Bank of Ireland to avoid charges that were being introduced on February 21 will be able to leave most of the transfer work to their new bank.
They will not have to face the headache of manually switching over all instructions for direct debits, standing orders or other regular payments, says the Central Bank.
It imposed a new legally-binding "switch code" on all banks last October which banks are required to adhere to.
The code requires banks to transfer this information electronically after the customer fills out the transfer forms with their new bank..
All banks are obliged to have a "switching pack" to make it easy for customers who want to change, says the Central Bank.
Customers will have to undergo the usual processes associated with opening a new account such as credit and identity cheques.
But they will not have to pick up the phone to electricity companies, gas companies or mortgage companies for instance.
There is also a requirement on the banks that the account is transferred within 10 days. The customer will have to contact their employers however to notify them of their new bank account details.
"Every bank has to have a switching pack available with forms for direct debits and other transfers. The switching should all be done by the credit institution not the customer," said a spokeswoman for the Central Bank.
Era of free banking 'over'
All bank customers are expected to be hit by new charges as bailed-out banks battle to fill the void left by the mortgage bonanza in the Celtic Tiger years.
Bank of Ireland is introducing its charges on February 21 and there is speculation that AIB and Permanent TSB expected to follow suit.
Consumer Association chief executive Derek Jewell described the Bank of Ireland charges as a "kick in the teeth" for customers who are also bailing out the State's main banks.
Bank of Ireland to charge 28c a transaction
The majority of Bank of Ireland's 1.2m current account holders will be subject to the new fees.
To avoid charges customers have two options:
-
make at least nine payments online or through phone-banking and have €3,000 a month going into their bank account every three months.
- Or maintain a minimum balance of €3,000 during the fee quarter.
Direct debits or standing orders already set up will not count as online transactions.
Customers who do not meet the new criteria will be charged 28c for each transaction or a quarterly fee of €11.40 for up to 90 transactions.
Cash withdrawals, payment of cheques and lodgements all count as transactions as well as direct debits, bill payments and money transfers.
