ABBL
Association des Banques et Banquiers, Luxembourg
The Luxembourg Bankers' Association
Luxemburger Bankenvereinigung
Bank account switching
From 1 November 2009 it has become easier for consumers to switch their current account from one bank to another in Luxembourg. On this date the ABBL implemented the “Common Principles for Bank Account Switching”, adopted by the European Banking Industry Committee (EBIC).
Consumers are free to transfer all or part of their banking relationship to a different bank. They can choose their new bank as a primary contact, meaning that this bank will act as intermediary between the consumer and their old bank as well as their creditors.
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Card theft/loss
In the event of loss or theft of a credit or debit card, CETREL (electronic transfer centre) must be contacted to place a stop on the card at the earliest opportunity by notifying the account number; this CETREL service operates round the clock seven days a week. A declaration of theft/loss made out by the police must be forwarded to the bank within 48 hours as confirmation.
Telephone number of CETREL: 49 10 10
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Codes of conduct
The financial sector in Luxembourg, as indeed elsewhere in the world, curiously suffers from two contradictory reputations. For some, finance is an unbridled, unregulated realm governed by the free market law of the jungle. For others, it is the regulated sector par excellence.
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Complaints
Who should be contacted if a dispute arises between a bank and a customer?
First of all, an attempt must be made to solve the problem by discussion with the institution concerned.
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Consumer credit
Consumers increasingly resort to consumer loans in order to finance personal or family needs. The Consumer credit agreement is an agreement whereby a lender grants or commits himself to granting the consumer a credit in the form of a delayed payment, a loan or any other similar credit instrument.
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Deposit guarantee and investment compensation
The "Association pour la Garantie des Dépôts" (AGDL) is a mutual guarantee system covering deposits in cash (deposit guarantee) and claims resulting from investment transactions (investment compensation) as defined by the law and by its statutes in favour of customers and investors with members of the association. The members of the AGDL are banks, the Financial Services of the Post Office (Services Financiers de l'Entreprise des Postes et Télécommunications) and investment firms (commission agents, private portfolio managers, …).
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Distance marketing
In order to incite consumers to trust financial services at a distance (that is marketed by fax, phone, or via internet), a legal framework was set up spanning the whole of the Single Market so that consumers may gain easier access to financial services in other Member States, safe in the knowledge that their interests are protected.
Consequently, service providers have to submit to a whole series of obligations so that their customers can benefit from a high degree of protection in retail financial services that are marketed at a distance.
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Over-indebtedness
Who may be affected?
Over-indebtedness is a social phenomenon which is generally believed to be spreading in the industrialized countries.
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Relationship with a bank
Opening a relationship with a bank
Does any particular procedure have to be respected?
The term opening a relationship does not simply denote opening an account for a customer, but also includes the mere fact of processing a transaction for a passing customer or giving a mandate to a third party.
When a relationship is opened, the banker who receives a customer will generally want to hold a preliminary discussion to determine such points as:
• The customer's identity
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Tracing assets after death
What procedure must be followed?
The heirs of deceased persons are sometimes aware that the latter may have deposited assets in their lifetime with Luxembourg banks but are unable to trace the bank or banks concerned.
To assist the heirs in their searches, the ABBL mail [at] abbl [dot] lu (mail@abbl.lu) makes available to them on demand:
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Unfair commercial practices
In Luxembourg, the legal provisions relating to unfair commercial practices are set down in the consumer code. This code consolidates all Luxembourg legal and regulatory texts relative to consumption with a view to providing consumers with a more coherent and concise presentation of consumer protection provisions.
What is considered as an unfair commercial practice?
A commercial practice is unfair if it meets the following criteria:
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