Client information
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.
Bank holidays
Each year, the ABBL publishes a calendar of bank holidays. The latest calendar can be downloaded below.
Banking standards
Unified transfer form
The new transfer standard is based on a unified form for all-purpose use : national and international transfers in EUR, in a foreign currency, etc.... The advantages for the user are self-evident: by using the unified form and systematically filling in the essential fields, users can rest assured that their transfer order will be automatically executed in the payment systems.
For printers, the data is available on demand.
IBAN and BIC codes for cross-border payments
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
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.
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.
Consumer credit
Consumers increasingly resort to consumer credits 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.
In Luxembourg law, this type of agreement is governed by the Law of 9 August 1993 regulating consumer credits. The aim of the text is to protect consumers and outline their rights and obligations vis-à-vis professionals.
Deposit guarantee and investment compensation
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.
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.
Over-indebtedness
Who may be affected?
Over-indebtedness is a social phenomenon which is generally believed to be spreading in the industrialized countries.
Payment services
FAQ on the Law of 11 November 2009 on Payment Services
Introduction
The Luxembourg law transposing the payment services directive (PSD) entered into force on 1 November 2009 and provides the legal and operational framework for the creation of a single market for payments within the European Economic Area (the EEA is the EU, together with Iceland, Liechtenstein and Norway).
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
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:
Unfair commercial practices
At EU level, commercial practices have been regulated in order to harmonise Member State legislations in matters of unfair commercial practices, covering purchases made in shops as well as online. The corresponding EU directive was transposed in Luxembourg by the Law of 29 April 2009 on unfair commercial practices. The law delineates a range of dishonest commercial practices that are forbidden in the entire European Union.
What is considered as an unfair commercial practice?
A commercial practice is unfair if it meets the following criteria:
