Information for Consumers about account switching service

An account switching service is a service whereby, in accordance with a request made by consumer to the receiving payment service provider, the transferring payment service provider transfers the information necessary for the account switching to the receiving payment service provider (if they both provide payment services in Latvia and the consumer payment accounts are in euro) and standing orders and/or, if possible, incoming payments are transferred from the consumer's account with the transferring payment service provider to an account opened for the consumer with the receiving payment service provider without closing the account with the transferring payment service provider or closing and transferring any positive cash balance to the new account opened with the receiving payment service provider.

As part of the account switching service, JSC „Rietumu Banka”, as the receiving service provider, applies commission fees for the registration of standing orders in accordance with the tariffs.

JSC „Rietumu Banka” informs that it is not possible to transfer e-invoice payment services within the account switching service, because the Bank does not provide e invoice payment services to its clients.

Description of the Payment Account Switching Process

1. The consumer shall:

come in person at the receiving payment service provider and informs that he wishes to switch account by signing and submitting to the receiving payment service provider a written account switching request, which shall indicate:

  • specific incoming credit transfers and standing orders for credit transfers to which the switch will apply;
  • whether he wishes to close the account opened with the transferring payment service provider and execute all payment services related to the account from the account opened with the receiving payment service provider;
  • the date (must be on a business day) from which standing orders for credit transfers shall be executed from a payment account opened or held with the receiving payment service provider, but not earlier than on the 13th business day from the submission of the account switching request to the receiving payment service provider.

It is important to remember that a separate account switching request must be submitted to the receiving payment service provider for each account opened for the consumer with the transferring payment service provider and for which the consumer wishes to transfer the payment services to the receiving payment service provider.

The consumer has the right to receive a copy of the account switching request free of charge.

2. The receiving payment service provider shall:

  • provide the consumer with an opportunity to get acquainted with information on the switching of payment account, including explanations to the consumer in which cases it is not possible to switch the account;
  • identify the consumer;
  • accept from the consumer account switching request;
  • open a payment account for the consumer, if it has not already been done;
  • within 2 business days from the date of receipt of the account switching request, send a request to the transferring payment service provider with the request to perform the tasks specified in the account switching request.

3. The transferring payment service provider shall:

first check whether there are no exclusionary circumstances for account switching - these are any circumstances due to which it is impossible to perform the account switching request and tasks specified here, incl. (but not limited to) a credit agreement linked to the consumer's account and an agreement to provide financial security to the transferring payment service provider, upon receipt of the request of the receiving payment service provider and a copy of the account switching request.

If there are exclusionary circumstances for account switching, the transferring payment service provider shall inform the receiving payment service provider within 5 business days that the switching of payment accounts is not possible. It should be noted that the transferring payment service provider may disclose information on the reasons which have prevented the switching of accounts only to the consumer himself.

If there are no exceptional circumstances for the execution of the tasks specified in the account switching request, the transferring payment service provider shall perform the following actions in accordance with the account switching request:

  • to provide the receiving payment service provider with information about consumer within 5 working days free of charge, which shall include:
    • a list of existing standing orders for the credit transfers to which switching applies;
    • information on incoming credit transfers and their periodicity, which have been made to the consumer's payment account during the previous 13 months;
    • information on e-invoices sent by the merchant, which are displayed to the consumer, and e-invoices for which the consumer has concluded an agreement with the transferring payment service provider on standing payment of e invoices;
  • to cease to accept incoming credit transfers to the payment account on the date specified in the account switching request if it is not possible to ensure the automatic transfer of incoming credit transfers to the payment account with the receiving payment service provider specified in the account switching request. The transferring payment service provider may offer the service to the consumer to inform the payer or the payee of the reason for not accepting the payment transaction for a period of six months after the suspension of payments;
  • to cancel standing orders from the date specified in the account switching request;
  • to transfer any positive cash balance from the payment account to the payment account opened with the receiving payment service provider on the date specified in the account switching request;
  • to close the payment account on the date specified in the account switching request, if the consumer has no outstanding liabilities in that payment account and the other actions specified in the request have been completed. If it is not allowed to close consumer’s payment account due to outstanding liabilities, the transferring payment service provider shall immediately inform the consumer.

4. The receiving payment service provider shall:

take the following actions in accordance with the account switching request and the information received, within 5 business days after receiving the requested information from the transferring payment service provider:

  • to prepare the standing orders for credit transfers requested by the consumer and execute them starting from the date specified in the account switching request;
  • to provide the payers specified in the account switching request with the information regarding the consumer's payment account with the receiving payment service provider necessary for the execution of payments, if the consumer has authorized the receiving payment service provider to provide this information to the payers. If the receiving payment service provider does not have all the information necessary to inform the payers specified in the account switching request, it shall request the missing information from the consumer;
  • to send a standard letter to the consumer giving details of the payment account and the starting date specified in the account switching request, if the consumer has not authorized the receiving payment service provider to provide the information specified in the previous paragraph to the payers.

5. Claim and Dispute Settlement

Complaints about the process must be submitted to the Consumer Rights Protection Center (www.ptac.gov.lv). The Consumer Rights Protection Center handles consumer complaints in accordance with the Consumer Rights Protection Law.

6. Basic information on the protection of state guaranteed deposits

Any Client of Latvian banks and savings companies – either private individual or a corporate entity – under the Deposit Guarantee Law of the Republic of Latvia (Noguldījumu garantiju likums) is provided with a compensation payment for all types of deposits in all currencies up to 100 000 EUR (One hundred thousand Euro) in any bank or savings company (on all accounts together in case of several accounts in a bank). The state-guaranteed amount refers to deposits, current account balances, salary accounts, savings accounts, cash accounts, etc. The Bank is a participant of the Deposit Guarantee Fund. The FCMC pays the guaranteed compensation to the Clients who have submitted their claims to a liquidator or an administrator and whose claims have been accepted by the mentioned persons according to legislation of the Republic of Latvia.

The Deposit Guarantee Law of the Republic of Latvia (Noguldījumu garantiju likums) is available on: https://likumi.lv/doc.php?id=274737.