How it is done
Switching banks became easier this month with the introduction of a new industry-driven code of conduct. The Irish Bankers' Federation initiative is designed to guide customers and financial institutions through the switching process speedily and with the minimum of fuss. Essentially the code transfers responsibility expediting the move to the two banks from the customer - covering everything from the electronic transfer of wages to direct debits/standing orders for utilities, insurers, SSIA providers and lenders. Previously, inertia ruled with customers put off by the difficulties involved in contacting everyone with whom they had direct debits, closing each such instrument, and then setting them up again with a new bank.
Now, customers simply sign a single account transfer form once they have opened an account with the new institution. This authorises the existing bank to provide the new bank with a list of all standing orders and direct debits on the account.
The new bank sends this to the customer's existing bank, which is also obliged to inform the other party of the customer's new account number and bank sort code. The new bank then sets up the changed direct debit mandates.
The banks have seven working days to complete the process and the customer's new bank must have the account up and running within 10 working days of approving the customer's application to open the account. ... Dominic Coyle