The Council of the European Union (Council) adopted a directive on 23 July 2014, which is designed to guarantee access to basic payment services and improve information on fees related to payment accounts. Irrespective of their financial situation or country of residence, any individual legally residing in a member state of the EU will be entitled to open a payment account to enable them to access basic banking services. A fee information document must also be provided to improve transparency in terms of fees related to payment accounts.
What this means for you
Bank accounts are considered to be a vital necessity in modern life. The Council’s acceptance of the Payment Account Directive (PAD), and publication of a revised text, follows the adoption of PAD by the European Commission and the European Parliament on 8 May 2013 and 15 April 2014 respectively. It brings us one step closer to achieving basic payment services for all. Members will have two years to transpose PAD into national law.