Payment Accounts Directive—essentials
Produced in partnership with Jeanette Burgess of Walker Morris

The following Financial Services practice note produced in partnership with Jeanette Burgess of Walker Morris provides comprehensive and up to date legal information covering:

  • Payment Accounts Directive—essentials
  • What is the Payment Accounts Directive and what are the key protections it offers consumers?
  • The background to the PAD and its current status
  • UK implementation of the Payment Accounts Directive
  • Comparability of fees connected with payment accounts under the Payment Accounts Directive
  • Fee information document and glossary
  • Statement of fees
  • Information for consumers
  • Comparison websites
  • Payment accounts packaged with another product or service
  • More...

Payment Accounts Directive—essentials

BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see: Brexit and financial services: materials on the post-Brexit UK/EU regulatory regime.

What is the Payment Accounts Directive and what are the key protections it offers consumers?

The Payment Accounts Directive (PAD) is intended to enhance transparency and comparability for consumers in respect of payment accounts. In particular, the PAD:

  1. makes it easier for consumers to compare fees charged by banks and other service providers across the European Union (EU)

  2. facilitates consumer switching of payment accounts; and

  3. entitles all EU consumers to open a payment account that enables them to perform essential functions such as receiving their salary and paying bills

The background to the PAD and its current status

The PAD has its origins in the European Commission's (Commission) consultation on retail bank accounts, opened in March 2012, which assessed the need for action in the areas of transparency and comparability of fees, account switching and access to basic payment accounts. This followed a retail banking sector inquiry in 2007 which had identified these

Popular documents