Online current account: the new regulations for current accounts “in the red”

Online current account: the new regulations for current accounts “in the red”

From 1 January 2021, there is some huge news for online current accounts (but also for “traditional” accounts). In fact, starting from the beginning of the year, the Eba – European Banking Authority – regulation came into force, which provides for the blocking of automatic debits on accounts, if the holder does not have the necessary liquidity.

The new, complex system of rules is the result of a European negotiation compromise, with a view to standardizing relations between customers and banks. The EU Banking Authority has approved the new regulations not only for companies, but also for individuals. But is it really that easy to be reported as a “bad payer”? Let’s find out.

When does one become “defaulting”?

There is a risk of becoming defaulted more quickly, but in particular conditions. Holders of a current account, online or traditional, must not allow more than 90 days to pass for the payment of a significant debt, to avoid being penalized.

A debt is considered such when it exceeds the two thresholds set by the rules approved by the EU. That is the first threshold of €100 for retail exposures, and the second one equal to 1% of the total debt accumulated with the credit institution. As regards companies and those who do business, the first threshold corresponds to €500.

What are the exceptions to the rule?

Those who have a current account can go beyond the time limits provided, as long as the policy of the bank or credit institution allows it. This option is especially valid for those who have a credit line, an extra sum that can be spent by the customer, if they find themselves in emergency situations.

However, trespass is not enough to fall into the abyss of “bad payers”. This is taken over by the Central Risks of the Bank of Italy. Its task is to evaluate a series of parameters to define whether a customer is in problematic conditions such as being unable to repay an overdraft on the account.

Trustcom Financial online current account: and everything is under control

Thanks to Trustcom Financial online current account, your financial situation is always under control. Browsing Internet banking is simple and intuitive and will allow you to have an always up-to-date overview of entries and exits, so that you never get caught unprepared.

Do you suddenly need liquidity? The Bank of Lithuania guarantees the entire amount of your account, which is why your funds are safe and always available.

Furthermore, our prepaid card with IBAN is the ideal support for paying utilities quickly and 100% safely, thanks to the SECURE CODE 3D. You can also manage and block your card directly from the Internet banking platform, at any time.

And if you have any doubts about the functionality of your online current account or if you need assistance, you can always count on our Customer Service. The chat support is in fact available from 9:00 to 18:00 on working days, always ready to accommodate your requests.

Do you need a business account for your company or freelance activity? Are you a private individual looking for a reliable online current account to manage finances safely? Take a look at our Personal and Business options, and find the solution that best suits your needs.