Policy paper

Payment service contract termination rule changes: implementation, timings, and next steps

A policy statement updating on the government’s plans to reform rules relating to payment service contract terminations.

From:
HM Treasury
Published
2 October 2023

Documents

Payment service contract termination rule changes: implementation, timings, and next steps

PDF, 328 KB, 11 pages

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Details

On 21 July, the Treasury published its policy statement on payment service contract termination rules and freedom of expression, setting out the government’s plans to enhance requirements relating to the process and conduct requirements placed on providers of payment services in cases of framework contract termination.

The changes include extending the notice period for termination of a framework contract from two months to 90 days and mandating that providers give a clear and tailored reason for termination. Both requirements are subject to limited exceptions, including if to do so would be unlawful.

This policy statement is intended to provide additional clarity on the implementation of these reforms: their intended scope; the government’s expectations for how these reforms should apply to payment service framework contracts in practice, and when the government intends to introduce the legislation to underpin these reforms.

Published 2 October 2023