§ 4-43. When the bank can close your account
Machine-translated from Norwegian. The Norwegian text is the one that applies. Read the original in Norwegian.Norsk English العربية Polski Українська
In brief
- The bank can only terminate an ongoing account agreement (kontoavtale) if the agreement allows it and there are objective grounds.
- The usual notice is two months in writing, but if the account has been deliberately used for illegal purposes or incorrect information has been given, the bank can close the account immediately.
- You are still entitled to your balance, a proportionate refund and information about previous transactions.
The text of the law (unofficial translation)
§ 4-43. Termination by the payment service provider
- that more than 24 months have passed since the last transaction, not counting the crediting of interest
- that the customer has intentionally used the account for illegal purposes
- that the customer has given incorrect information in order to obtain the right to a payment account (betalingskonto) or payment services (betalingstjenester) as mentioned in § 4-1 if correct information would have led to a refusal by the payment service provider
- that the customer is no longer legally resident within the EEA (EØS), cf. § 4-1 third paragraph, first sentence.
What does this mean?
This section says when the bank can close your account, or shut off your access to the services. Two things are required: the account agreement runs for an indefinite period and gives the bank this option, and there are objective grounds. Four situations always count as objective grounds. The account has had no transactions for more than 24 months, with interest income not counted. You have deliberately used the account for something illegal. You have given incorrect information to get an account, and correct information would have led to a refusal. Or you are no longer legally resident in the EEA.
The main rule is that the bank must wait at least two months after you have received written notice of the termination and the reason for it. If the reason is that the account has been deliberately used for illegal purposes, or that you have given incorrect information, the bank can close the account immediately. You must then be notified at once. Both types of notice must say something about complaint handling. Under § 3-53, the bank must have procedures for handling complaints and must answer them in writing. In the case of termination, you must also be told about your right to complain and about the possibility of having the case heard by a complaints board (klageorgan). Example: a customer has not used the account for more than two years. The bank can terminate if the agreement gives it the right to do so, but must give written notice and wait two months.
The third paragraph refers you to § 4-42 third paragraph: you are entitled to your balance with interest, a proportionate refund of prepaid charges and access to information about previous transactions, also when it is the bank that ends the agreement. The customer's own notice of termination (oppsigelse) is regulated in § 4-42. Accounts that have been left untouched are followed up in § 4-46, where the bank must send a notice to you or your heirs. Blocking of a payment instrument (betalingsinstrument) for security reasons is regulated in § 4-45. Accounts with a lock-in period have their own arrangement in § 4-44. The basic rule that the bank cannot refuse payment services without objective grounds is in § 4-1.
- § 3-53Complaint handling: response deadlines and refusals
- § 4-42Terminating the account agreement: your rights as a customer
- § 4-46Accounts not in use: the bank's duty to notify
- § 4-45When the bank can block payment cards and other payment instruments
- § 4-44Terminating an account with a lock-in period