CHAPTER IV

ACCESS TO PAYMENT ACCOUNTS

Framework contracts and termination
Article 19
1
Framework contracts providing access to a payment account with basic features shall be subject to Directive 2007/64/EC unless otherwise specified in paragraphs 2 and 4 of this Article.
2
The credit institution may unilaterally terminate a framework contract only where at least one of the following conditions is met:
a
the consumer deliberately used the payment account for illegal purposes;
b
there has been no transaction on the payment account for more than 24 consecutive months;
c
the consumer provided incorrect information in order to obtain the payment account with basic features where the correct information would have resulted in the absence of such a right;
d
the consumer is no longer legally resident in the Union;
e
the consumer has subsequently opened a second payment account which allows him to make use of the services listed in Article 17(1) in the Member State where he already holds a payment account with basic features.
3
Member States may identify additional limited and specific cases where a framework contract for a payment account with basic features may be unilaterally terminated by the credit institution. Such cases shall be based on provisions of national law applicable in their territory and shall be aimed at avoiding abuses by consumers of their right to access a payment account with basic features.
4
Member States shall ensure that, where a credit institution terminates the contract for a payment account with basic features on one or more of the grounds mentioned in points (b),(d) and (e) of paragraph 2 and in paragraph 3, it informs the consumer of the grounds and the justification for the termination at least two months before the termination enters into force, in writing and free of charge, unless such disclosure would be contrary to objectives of national security or public policy. Where the credit institution terminates the contract in accordance with point (a) or (c) of paragraph 2, its termination shall take effect immediately.
5
The notification of termination shall advise the consumer of the procedure to submit a complaint against the termination, if any, and of the consumer’s right to contact the competent authority and designated alternative dispute resolution body and provide the relevant contact details.