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| Bank account switching up 19% in first year | Bank account switching up 19% in first year |
| (about 5 hours later) | |
| The system that allows UK bank customers to switch their accounts in just seven days has been hailed as a success, a year after it started. | The system that allows UK bank customers to switch their accounts in just seven days has been hailed as a success, a year after it started. |
| According to the Payments Council, there has been a 19% increase in the numbers switching. | According to the Payments Council, there has been a 19% increase in the numbers switching. |
| However, the head of the Financial Conduct Authority (FCA) suggested the results had been disappointing. | However, the head of the Financial Conduct Authority (FCA) suggested the results had been disappointing. |
| "The actual number of people switching has remained relatively low," Martin Wheatley told MPs this week. | "The actual number of people switching has remained relatively low," Martin Wheatley told MPs this week. |
| In the first 11 months of its operation, 1.1 million customers switched their account to another bank, compared with 926,000 switches in the previous period. | In the first 11 months of its operation, 1.1 million customers switched their account to another bank, compared with 926,000 switches in the previous period. |
| The figures suggest just 2.2% of current account holders used the system to change provider. | The figures suggest just 2.2% of current account holders used the system to change provider. |
| Nevertheless, the Payments Council, which administers the system, said it had been a success. | Nevertheless, the Payments Council, which administers the system, said it had been a success. |
| "It's clear from reviewing its very first year that it's made great ground - empowering customers with the ability to switch their bank account easily and quickly if they choose to do so," said Gerard Lemos, the Payments Council executive chairman. | "It's clear from reviewing its very first year that it's made great ground - empowering customers with the ability to switch their bank account easily and quickly if they choose to do so," said Gerard Lemos, the Payments Council executive chairman. |
| The Current Account Switch Service was introduced on 16 September 2013. | The Current Account Switch Service was introduced on 16 September 2013. |
| Since then, it has been possible for customers to move their accounts in seven days, instead of the 18 to 30 days it took previously. | Since then, it has been possible for customers to move their accounts in seven days, instead of the 18 to 30 days it took previously. |
| 'Free' banking | 'Free' banking |
| Some experts believe the complexity of bank charges is a barrier to switching. | Some experts believe the complexity of bank charges is a barrier to switching. |
| The Financial Services Consumer Panel, which advises the Financial Conduct Authority (FCA) is calling for an inquiry into the way banks charge customers for their current accounts. | The Financial Services Consumer Panel, which advises the Financial Conduct Authority (FCA) is calling for an inquiry into the way banks charge customers for their current accounts. |
| Even though the accounts often appear to be free, they are often cross-subsidised by overdraft charges, for example. | Even though the accounts often appear to be free, they are often cross-subsidised by overdraft charges, for example. |
| "Consumers do not understand the real price they are paying for their 'free' banking, nor whether they would get a better deal elsewhere," said Sue Lewis, the chair of the Consumer Panel. | "Consumers do not understand the real price they are paying for their 'free' banking, nor whether they would get a better deal elsewhere," said Sue Lewis, the chair of the Consumer Panel. |
| It is calling on the Competition and Markets Authority (CMA) to oversee the investigation. | It is calling on the Competition and Markets Authority (CMA) to oversee the investigation. |