Current Account Switch Service Enhancements Come Into Effect for Consumers and Businesses

3rd April 2015

Switch guarantee extended to businesses, charities and trusts with a turnover of up to £6.5 million.

Redirection service for customers' payments extended to 36 months.

Two enhancements to the Current Account Switch Service (CASS), announced in the Chancellor's Autumn Statement last December, have been successfully implemented by the banking industry.

As of 1 April 2015, the eligibility criteria for businesses, charities and trusts has been extended so that organisations with a turnover of up to £6.5 million can switch their current account provider using CASS. The service was previously available for small businesses with a turnover of 2 million euros (or sterling equivalent); and this extension increases the reach of the service to 99% of the UK's SME market.

Additionally, the redirection service - which ensures that any payments accidentally made to the old account are automatically sent to the new account - has been extended to 36 months. The Current Account Switch Service, which was launched in September 2013, makes switching from one bank or building society to another simple, reliable and hassle-free. Since launch, there have been more than 1.6 million switches using the new service. Information for customers on the new service and links to participating banks and building societies are available at www.simplerworld.co.uk. For further details contact 020 3217 8251/8340 or email press[AT]paymentscouncil.org.uk.

Key features of the Current Account Switch Service include:

The service is free to use.
The switch will be completed in seven working days - a substantial improvement on the previous process that could take between 18 and 30 working days.

The customer can choose and agree the switch date with their new current account provider.

All payments going out (e.g. Direct Debits) and those coming in (e.g. salary) will be moved from the old account to the new account.

For 36 months after a switch, payments accidentally made to or requested from the old account will be automatically redirected to the new account.

The Current Account Switch Guarantee means that the customer will receive a refund of interest and charges on their old and new current accounts if anything goes wrong with the switch.

The Current Account Switch Service (CASS) is managed and owned by Bacs, the company responsible for Direct Debit and Bacs Direct Credit in the UK. Bacs is responsible for all aspects of CASS and is now also working on the recent FCA Report recommendations.

The Payments Council is the body that represents the payments industry in the UK and was responsible for developing and launching the Current Account Switch Service (CASS) in September 2013.

This summer, to reflect changes taking place in the UK payments environment, the Payments Council will be replaced by a new collaborative body.

More detail will be made available over the coming months.