FS15/4: Terms and definitions for services which are linked to payment accounts and subject to fees

In this Feedback Statement we report on the main issues arising from responses to our Call for Input: Terms and definitions for services which are linked to payment accounts and subject to fees[1], and publish the provisional UK list of terms and definitions.

Why are we issuing this Feedback Statement?

We are required under the EU Payment Accounts Directive (PAD) to develop a list of the key services linked to payment accounts that are subject to a fee in the UK. In June 2015 we published a Call for Input in which we sought views on the services we proposed to include on the list and on our suggested terms and definitions to describe these services.

In this Feedback Statement we summarise the feedback we received and explain how we have used it to finalise the provisional UK list of services, terms and definitions.

Respondents were generally supportive of our proposals and of the consumer testing we commissioned. They also made some helpful suggestions for amendments. In response we have:

• added five additional services to the list
• set out terms and definitions to describe these additional services
• changed the term ‘unplanned overdraft’ to ‘unarranged overdraft’
• made minor amendments to some of the definitions

Feedback Statement 15/4[2] [PDF]

Who is this Feedback Statement aimed at?

This will be of interest to:

• banks
• building societies
• other providers of payment accounts falling within the scope of PAD, for example e-money issuers
• trade bodies representing credit institutions and other payment service providers
• consumers who have a current account or other type of payment account
• consumer organisations

What are the next steps?

Providers of payment accounts do not need to take any immediate action. Completion of the provisional UK list is the first step in the PAD standardisation process.

As required by PAD, we will submit the provisional UK list of terms and definitions to the European Commission and the European Banking Authority (EBA) by 18 September 2015.

The EBA will then standardise the terms and definitions for the services that appear on the lists of at least a majority of EU Member States. We will contribute to the EBA work as appropriate. The EBA will consult publicly on its proposed EU standardised terms and definitions.

Want to find out more?

Please see:

• Call for Input: Terms and definitions for services which are linked to payment accounts and subject to fees[3]
• report by Optimisa Research on Payment Accounts Directive: services linked to payment accounts[4]
• our webpages on the Payment Accounts Directive[5]