Payment service contract termination rule changes – Draft SI and Policy Note
A near-final version of legislation to change rules on provider-initiated terminations of payment service contracts, which is being published for final checks.
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The government has announced changes to strengthen the requirements applicable to banks, and other payments service providers, when they intend to terminate a contract for payment services (such as a current account). These changes are designed to better protect consumers and other users of payment services.
The changes include requiring providers to give at least 90 days’ notice and a sufficiently detailed and specific explanation for the termination. Both requirements are subject to certain exceptions, including if to do so would be unlawful.
The government is publishing this draft legislation for technical checks, alongside an explanatory policy note. The government welcomes technical comments on the draft legislation by 14 April 2024, and intends to lay this legislation before Parliament in Summer 2024.