Basic payment account

The Law of 13 June 2017 on payment accounts introduces a right of access to a basic payment account with a minimum of services that the concerned institutions have to offer.

Who has the right to open a payment account with basic features?

  • Consumers legally resident in the European Union
  • Consumers with no fixed address
  • Asylum seekers
  • Consumers who are not granted a residence permit but whose expulsion is impossible for legal or factual reasons, located in their territory

Such a right shall apply irrespective of the consumer’s place of residence.

Be aware that where a consumer already holds a payment account with a credit institution located in their territory which allows him to make use of the services save where a consumer declares that he has received notice that a payment account will be closed.

The credit institution may verify whether the consumer holds or does not hold a payment account with a credit institution located in the same Member State which enables consumers to make use of the services. Credit institutions may rely on a declaration of honour signed by consumers for that purpose.

Which institutions must offer a payment account with basic features?

List of institutions that must provide consumers with a basic payment account in Luxembourg.

Which services must be offered?

  • Services enabling all the operations required for the opening, operating and closing of a payment account
  • Services enabling funds to be placed in a payment account
  • Services enabling cash withdrawals within the European Union from a payment account at the counter or at automated teller machines during or outside the credit institution’s opening hours
  • Execution of the following payment transactions within the European Union:
    • direct debits
    • payment transactions through a payment card, including online payments
    • credit transfers, including standing orders, at, where available, terminals and counters and via the online facilities of the credit institution

Credit institutions may allow to provide, upon the consumer’s request, an overdraft facility in relation to a payment account with basic features.

When the institution must refuse an application for a payment account with basic features?

  • Where it would result in an infringement of the provisions on the prevention of money laundering and the countering of terrorist financing
  • Where the information provided by the consumer in order to open the account are inaccurate or misleading
  • It suspects that the consumer based on consistence evidence will use the payment account for illegal purposes

When the institution may unilaterally terminate a payment account with basic features?

  • The consumer deliberately used the payment account for illegal purposes
  • There has been no transaction on the payment account for more than 24 consecutive months
  • The consumer provided incorrect information in order to obtain the payment account with basic features where the correct information would have resulted in the absence of such a right
  • The consumer is no longer legally resident in the European Union
  • The consumer has subsequently opened a second payment account which allows him to make use of the services listed where he already holds a payment account with basic features

Contact

Association des Banques et Banquiers, Luxembourg

Address

12, Rue Erasme L-1468 Luxembourg

Phone Fax
Opening hours

Monday to Friday from 8:00 to 17:30.