The Basic Banking Service for Individuals and the Right to a Bank Account

This post is also available in:

Principle

In another article on the termination of the relationship between a bank and its client, and the resulting closure of accounts, we identified the basic banking service as one of the exceptions to the banker’s right to take such a decision. A bank may refuse a client for all sorts of reasons. The evolution of commercial exchange makes this situation particularly difficult, even harmful, since a person unable to open an account could be prevented from making electronic payments (or simply paying merchants via a terminal) or receiving funds. To combat this exclusion, the legislature introduced the basic banking service by the Act of 24 March 2003 (now Articles VII.56/1 to VII.59/3 of the Code of Economic Law).

Conditions for the right to the basic banking service

In principle, applying for, accessing or holding a payment account may not entail discrimination against the consumer based on nationality, place of residence or any other ground covered by the Act of 30 July 1981 on combating racism and xenophobia. In substance, the regime gives consumers legally resident in an EU Member State the right to a current account. That account must allow the consumer to make deposits and withdrawals, transfers, standing orders and direct debits, and to make payments by debit card or similar device. The right does not, of course, include the possibility of carrying out a payment that would create a debit balance. Persons admitted to the collective debt-settlement procedure are protected: a bank may not refuse or terminate the basic banking service on that ground.

Limits to the right

The right is not absolute. The bank may refuse to open a current account where the applicant already holds one with another Belgian bank, or where they already hold accounts whose average annual cumulative credit balance exceeds EUR 6,000. Likewise, the bank may refuse the service where the client holds credits of EUR 6,000 or more. A conviction for fraud, breach of trust, fraudulent bankruptcy or forgery may lead to a refusal or later termination. The bank is, conversely, required to refuse any request that would breach the Anti-Money-Laundering Act of 18 September 2017.

Despite this right, the bank may terminate the service where no payment transaction is made on the account for more than 24 consecutive months, where the consumer provided inaccurate information to obtain the service (and accurate information would have precluded the right), or where the consumer loses the right to reside legally in an EU Member State. On termination, the bank must give two months’ notice, except where the termination is based on one of the above offences or on inaccurate information, in which case no notice is required.

See also our article on the basic banking service for businesses.

This article is a translation. Only the French version is authoritative. It is provided for information purposes and does not constitute legal advice.