INFORMATION ABOUT THE SIMPLIFIED WAY TO SWITCH BANKS
UniCredit Bank is party to the recommendation of the Presidency of the Hungarian Banking Association, which was issued, in line with the European recommendation, in order to simplify switching banks regarding to retail bank accounts. As a result of the regulations, switching banks, which had involved a lengthy process, was greatly speeded up. We are certain that this change will please our clients.
Below you can read about the most important information on switch banks. The information is not comprehensive. For more information please visit the website of the Hungarian National Bank’s Financial Customer Protection Centre dedicated to the switching of banks, where you can watch a short video on this topic and, under the online applications, you can try the MNB’s Bank account selection program.
What is the aim of the bank switching procedure?
The aim of the procedure is to simplify the bank switching process for retail clients, including transferring payment orders related to bank accounts (e.g. standing orders, direct debits) to another credit institution.
The essence and advantage of the simplified procedure is that the new credit institution you selected will delegate a contact person for the bank switching process, and so the new institution will act on your behalf and in your name.
We recommend that you do not close your old bank account for 1-2 months after the switch to ensure that credits and debits initiated earlier can arrive smoothly (e.g. purchases by bank card).
How can you initiate switching banks? What kind of documents will be needed?
- At the selected new credit institution, you can give your personal (name, address etc.) and bank account data on the switching bank form used for retail clients.
- For identification purposes, please do not forget to take the documents required by the new credit institution with you (e.g. ID card, address card).
- Based on the specified data, all direct debits and standing orders debited from your old bank account will be switched to the account opened with the new credit institution, while you do not have to do anything (e.g. consult with service providers entitled to the public utility fees paid from the account); everything will be arranged by the new credit institution.
What are the steps of switching consumer bank?
1. Selection of the new account.
2. Initiation of switching the bank by completing the form at the new institution.
3. The new institution will notify the old credit institution about the switch within 5 working days.
4. The old credit institution will confirm or reject the application within 7 working days (see below).
5. If it is confirmed, the new institution will set up the payment orders within 7 working days.
6. The old credit institution will terminate the contracts related to the old bank account. The old bank account will only be terminated if you applied for it. Regardless of the fact that you have transferred all orders from it and/or the balance of the account is zero, it will continue to exist until your termination. Therefore, if you intend to terminate your old account, you have to register it on the form.
The bank switch takes 30 days on average.
What are the costs of the consumer bank switch?
The institutions cannot charge any fees or costs for the bank switch: the information regarding the switch also has to be free. However, certain costs may arise in connection with the termination of the given bank account. Typically, those include the monthly account management fee which generally has to be paid for each month started. Some institutions may charge additional fees for the termination of the account. Please make enquiries about these in each case! It is worth leaving the necessary amount on the account so that you can terminate it without any problems.
When are consumer bank switch requests rejected?
- Any of the data given on the form used for the bank switch or any other written declaration differs from the data kept by the credit institution.
- The account number specified upon initiating the switch does not exist or does not belong to you.
- You have not terminated other contracts or payment transactions related to the bank account contract (see next point).
- The bank switch was cancelled by the initiator.
- The account contract cannot be terminated for any other reason (see point 6).
How can you terminate consumer bank account contracts and other related contracts and payment transactions?
All contracts and services related to the account have to be terminated for the total bank switch, personally in writing, in most cases.
These are the most frequent related contracts and services but this list is not exhaustive:
- bank card and credit card contracts,
- deposit commitment,
- credit contracts related to the given bank account with an account maintenance obligation (e.g. mortgage loan, personal loan, overdraft facility),
- electronic services (e.g. telephone banking, internet banking, text message services),
- subcontracts for subaccounts related to the bank account.
When you cannot terminate the bank account contract?
The consumer bank account cannot be terminated if
- a deposit commitment is related to it, or
- if you have any debts on your account (your balance is negative),
- prompt collection orders or enforcements are applied against the account,
- if any other existing services or contracts are connected to the bank account (see point 6),
- some institutions may prescribe that you must only repay the loan or leasing fee from a bank account managed by the given bank. In this case, you need to keep the account and make sure that you have enough funds on it when the instalment falls due.
- It will not terminate the bank account contract if you do not use your bank account!
- The bank switch will result in the termination of the existing bank account if the client specifically asks for it and there is no obstacle!
- All other related contracts have to be terminated to complete the bank switch!
- In order to be able to withdraw cash from your account free of charges as allowed by the law, you need to register a new statement for the account opened at the selected new credit institution.