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The pitfalls of banking mobility

The pitfalls of banking mobility

Bank mobility makes it possible to change banks as quickly as they do telephone operators. Well… almost, because the change will only be effective after 22 days and difficulties are to be expected if you had taken out loans or made investments with your old bank.

The more you are linked to your bank, the less you will be able to change.

This mobility service is especially suitable for current accounts used for simple payment transactions. This system requires your old bank and your new bank to communicate to each other all the information relating to your issuers * and to contact them directly to inform them of your new bank details.

*Issuers are all organizations, service providers, suppliers (employers, CAF, electricity, gas, taxes, etc.) and individuals (alimony, etc.) making regular transfers or withdrawals (creditors, lessors, etc.).

Bank mobility is defined in Law No. 2015-990 of August 6, 2015; Decree No. 2016-73 of January 29, 2016 relating to the banking mobility assistance service; and Articles L. 312-1-7 and L312-20 (for inactive housing savings plans) of the Monetary and Financial Code

The new bank will offer you the free banking mobility assistance service.

Mobility concerns deposit accounts:

From an individual account to an individual account

  • From a joint account to a joint account
  • From an individual account to a joint account if the holder of the individual account is one of the holders of the joint account
  • From a joint account to a joint account if they are the same holders

But this does not concern:

  • Professionals
  • Savings accounts
  • Overdraft accounts will need to be regularized before you can change banks.

The procedure

Open an account in a new bank

There, nothing has changed. The documents to be produced are an identity document, proof of address, a specimen signature, proof of income to have means of payment (credit card checkbook) ... The bank checks that you are not banned from banking, and you submits the banking agreement (prices, etc.)… the account is open.

Your new bank will offer you to conclude the bank mobility mandate, which is a free service for managing the closure of the old account.

If you accept it, all you have to do is give it the RIB of the old bank and specify the date from which the transfer orders must be canceled (12 days minimum after the conclusion of the mobility mandate).

Transfer times (minimum 22 days)

Your new bank within 2 working days to contact the old bank.

The latter must transmit within 5 working days all the information concerning the issuers who regularly pay or withdraw sums from your accounts (or, who have done so at least twice in the last 2 months).

All these issuers will be informed within 3 working days of the change by their banking establishment. They will have 10 days (if they benefit from a transfer) and 20 days (if they make direct debits), to inform you personally that they have been made aware of the change of domiciliation.

To avoid bugs, setbacks that lead to penalties and fees, it is safer to check that the transfer of transfers and direct debits are effective on your new account before closing the old account.

If the old bank is abroad and the new bank does not know it, the new bank must directly inform these issuers within 5 working days.

The new bank sends you the list of standing transfers (you need your agreement for these transfers to be made from your new account) and the list of check forms not debited during the last 13 months.

Closing the old account

It is safer that you do the count, to verify if any checks were still in the nature… in order to leave enough money in the old account to honor them.

Once the old account is closed, the old bank has the obligation to inform you of all movements, rejections occurring within 13 months of the closure. But in principle you will only be entitled to one information per issuer (no successive reminders).

If you have not left sufficient funds, she may refuse to pay. You will be informed of how you can regularize. (beware of the risks of a banking ban which would extend to all your other accounts)

No mobility for loan and credit contracts

If you have a loan from your old bank, these contracts cannot be transferred to your new bank. You remain debtor to your former banker.

You can either:

  • Keep the credit with the old bank and make a regular transfer corresponding to the monthly payments.
  • Pay it off in advance. In this case, it will above all be necessary to check the costs: additional interest, early payment indemnities, administration costs (mortgage lifting costs, insurance, etc.).
  • Make a loan buyback with the new bank. She will check your file (the repayment capacity, amortization table for the current contract… payment incidents…). She can refuse.

But if she accepts she must provide you with a document summarizing the old and new conditions of the contract. This will allow you to know the advantages and disadvantages of the new loan buyback conditions (overall effective rate, duration, etc.).

As with any loan contract, you benefit from:

  • A reflection period of between 10 and 30 days for real estate contracts
  • A 14-day withdrawal period for consumer loans

The (very) relative mobility of savings accounts

Livret A - Youth Booklet - Sustainable Development Booklet - Popular Savings Booklet

You can only have one account for these products. So, you will have to close the one you had with the old bank and open a new similar passbook account in the new bank.

Interest will be calculated from January 1 of the current year until the closing date. The old bank will have to transfer the remaining balance (principal and interest) to your new account.

Housing Savings Plan (PEL) - Housing Savings Account (CEL)

In case of closure you will lose all your advantages!

If you request the transfer, you will need to obtain the agreement of the 2 banks! If agreed, the old bank will transfer the account balance. The advantages will remain with you and… often invoiced very dearly!

You have to find out.

Popular savings plan (PEP)

He does not exist anymore ! But many already had one that continued to work with their old bank.

It is therefore necessary to check whether the new bank agrees to take over this account. In general, tax accounts are transferable, but not financial products (life insurance, joint account, etc.).

This service is billed. You have to be well informed.

Savings in Action Plan (PEA)

The transfer concerns a portfolio of securities, stocks, bonds, SICAVs, etc. It is necessary to check the conditions under which the new bank intends to keep them. These services are charged dearly!

Please note: Mutual funds (FCP) must remain in the old bank or be changed.

If these are transferable securities, the transfer of securities is made in free deposit.

Problems may arise for life insurance contracts. If the bank has agreements with another insurer, the transfer will not be possible.

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