New duties of information when refusing to open or convert basic bank accounts

This amendment reinforces the obligation on credit institutions to inform the affected party free of charge of their refusal to open a basic bank account or to convert a current account into a basic bank account on paper or another durable medium.

As a result of this amendment, institutions are now obliged to inform the bank customer of the mechanisms that they can use if they disagree with the refusal, including lodging a complaint with the Banco de Portugal and potentially initiating alternative dispute resolution procedures. Institutions must also inform the bank customer of the contact information available for that purpose.

Furthermore, the Bank is now able to sanction institutions if, within ten working days of the submission of the application to open a basic bank account or to convert a current account into a basic bank account, they do not open or convert the account or, where the customer fails to comply with the legal requirements to access the basic bank account, they do not inform the customer of the refusal of the application in question.

Note that credit institutions may only refuse to open a basic bank account if they determine that at the time of the application the customer holds one or more current accounts, except if that account is a basic bank account co-held with another person over 65 years old or disabled to a degree of 60% or more.

Basic bank accounts

Basic bank accounts are a set of banking services deemed essential, which citizens may access at a low cost (at most, €4.38 per year in 2021). They include, inter alia, opening a current account – the basic bank account – and the provision of the respective debit card.

Basic bank accounts must be made available by all credit institutions authorised to accept deposits from the public, i.e. banks, savings banks, the central mutual agricultural credit banks and mutual agricultural credit banks, and providing the services included in the basic bank accounts to the public.