§ 4-38. The new bank's tasks in account switching (kontobytte)

This section sets out what the new bank (the receiving payment service provider) must do when a consumer has given authorisation for account switching. The bank sets up the standing payment orders the consumer asks for, and executes them from the date stated in the authorisation. It also gets ready to accept direct debits from the same date. In addition, the bank must inform the consumer of their rights under the EU regulation on credit transfers and direct debits in euro, where relevant. Finally, it must notify those who regularly pay the consumer, and payees who make direct debits, about the new account.

The tasks are limited by what the consumer has authorised, and by the information the old bank has actually been able to provide.

The third and fourth paragraphs concern the information to payers and payees. The bank must send a copy of the authorisation together with the information. If the bank lacks anything it needs to provide such information, it must ask the consumer or the old bank to obtain it. If the consumer wants to inform payers and payees personally, the new bank must give them a standard letter with the payment details and the start date from the authorisation.

The fifth paragraph sets a deadline: All the tasks must be completed within five business days after the bank has received the first information from the old bank. The deadline therefore runs from receipt, not from the authorisation. This gives a clear timetable: The request goes out no later than two business days after the authorisation (§ 4-36), the old bank sends the information within five business days (§ 4-37), and after that the new bank has five business days.

The section must be read together with § 4-37 on the old bank's tasks and § 4-35 on the authorisation. The banks cannot charge a fee for the services under §§ 4-34 to 4-40 unless the fee is reasonable and in line with actual costs, cf. § 4-41.