Central Bank insists people are switching bank accounts to escape fees
However, new figures show just one in 10 switching bank despite hike in charges
Published 06/05/2014 | 12:00
THE Central Bank has insisted that more people are switching bank accounts in a bid to escape higher fees and bad service.
But the regulator also admitted this morning that despite a rise in the numbers moving accounts, the switching figures are still low.
Fewer than 11,000 people switched bank account in the second half of last year, using the Central Bank’s switcher code.
This is out of a total of 5.4 million current accounts. In percentage terms, less than 0.2pc of accounts were switched in the second six months of last year.
In the first half of last year 4,241 consumers moved bank.
This is despite higher fees and charges being imposed by the main banks and the decision of ACC and Danske Bank to pull out of retail banking here.
Director of Consumer Protection, Bernard Sheridan, said: “These new figures show that, while low, an increasing number of consumers are availing of the Central Bank’s Switching Code to manage the changeover when switching current accounts.
“Factors which appear to be influencing the choices that consumers are making include: changing fees and charges; service issues; and announcements regarding the withdrawal of current account providers from the market.”
The code is supposed to make it easier for consumers to move banks, and demands that the switch is completed within 10 days.