Basic Changes in Payments Effective from November 2009
We have summarised the most important effects of the new Law No. 284/2009 Coll., on Payments, on banking services to private individuals (including private individuals-entrepreneurs) and legal entities which came into effect on November 1, 2009.
ČSOB has decided to approach all clients in the same way. Thus entrepreneurs, small, medium and large enterprises will have identical rights and protection as private individuals.
Contractual relationships between the client and CSOB
Making contracts
Contractual relationships between the client and ČSOB will be newly established as a “payment service agreement” (pursuant to the Law the term ´master agreement’ is also used), which at ČSOB consists of:
- all payment service agreements between ČSOB and the client (current account, payment card, use of electronic banking services etc.),
- ČSOB General Business Terms and Conditions (hereinafter referred to as the “GBTC“),
- product terms and conditions for payment services stipulating the rights and obligations of clients while they are provided.
From November 1, 2009 we will use amended payment service agreements for new clients. However, existing clients will not have to update their agreements because the original agreements adhere to the new Law.
The updated version of the GBTC and product terms and conditions (effective form November 1, 2009) can be seen at www.csob.cz or at ČSOB branches.
Notice periods
Changes in the notice periods specified in payment service agreements will also be reflected in the agreements made before November 1, 2009:
- the notice period if an agreement is terminated by ČSOB will be extended from 1 to 2 months; it begins on the first day of the calendar month after that in which the notice of termination is delivered,
- the notice period if an agreement is terminated by the client will be shortened to 1 month, which applies to those with a notice period over 1 month (e.g. 45&nbps;days for account agreements) and begins on the day after that on which the notice of termination is delivered to ČSOB,
- the notice period if an agreement is terminated by the client will remain unchanged, which applies to those with a notice period shorter than 1 month (e.g. upon the delivery of the notice of termination to ČSOB, which applies to electronic banking services ČSOB InternetBanking 24 or ČSOB BusinessBanking 24).
ČSOB information duty
ČSOB standard services include providing information to clients. We would like you to have enough time to make your decision before concluding an agreement.
What does the Law specify in detail from November 2009:
- entitlement to know the GBTC and product terms and conditions and changes proposed in other terms: 2 months before they come into effect at www.csob.cz or ask for a printed copy of the GBTC at a ČSOB branch. If you do not refuse the proposed changes we will consider them as being accepted.
- availability of specific terms and fees for payments. Information will be provided by branch employees, Client Centre operators (Infoline 800 300 300) or by e-mail at the address: info@csob.cz.
Account statements
Unlike previously you will be informed of payment transactions in payment accounts (i.e. current accounts intended for payment transactions) at least once a month.
If you have originally stipulated quarterly account statements:
- we have switched to monthly account statements automatically and free with effect from November; the account statement will be delivered as before (for current, savings, time or loan accounts),
- clients holding children’s accounts and student clients will continue to have free account maintenance.
And what about the fees?
Neither monthly nor quarterly account statements (which are cancelled) have been subject to any fees to date. They are parts of our accounts.
If you would like electronic account statements ask an advisor at any ČSOB branch to incorporate account statement delivery in the electronic banking service that you use at ČSOB. In addition, you will not pay for account maintenance, either.
If you have not stipulated the delivery of account statements for current accounts:
- we will begin to send you electronic statements automatically directly to the ČSOB Electronic Banking application (i.e. from December 2009 for transactions made in November) if you use this service,
- otherwise you will receive account statements by post every month.
If you are not happy with account statement delivery being set automatically contact our advisors who will be pleased to help you.
Changes in payments
We would like to draw your attention to changes in the terms of the delivery of payment orders abroad and in foreign currencies in the Czech Republic and the terms for crediting accounts with incoming amounts transferred in the Czech Republic and from abroad:
- we postpone the deadline for the delivery of electronic payment orders abroad and in foreign currencies in the Czech republic until 4.30 p.m.; paper based payment orders abroad and in foreign countries in the Czech Republic will be delivered the day before the due date during the business hours of the branch,
- all amounts transferred in CZK in the Czech Republic and from foreign countries in a currency of a EU/EEA member country will be credited in favour of your account after ČSOB has received all the documents necessary for the money transfer to the beneficiary and the respective funds to cover the transfer in a ČSOB account at the correspondent bank.
Do you transfer money to EU/EEA countries in EUR or their currencies?
Effective November 2009 money transfers denominated in EU/EEA currencies within member countries will have the SHA code of fee payment i.e. both the payer and the beneficiary pay fees to his bank. See the List of EU/EEA member countries and their currencies.
For money transfers to countries outside the EU/EEA area or in currencies other than those applicable to EU/EEA countries all the codes, SHA, OUR and BEN can be used.
Money transfers from EU/EEA member countries in currencies of EU/EEA member countries will be accepted with codes other than SHA. In order to protect our clients against any potential difficulties we will temporarily credit transfers with OUR and BEN payment codes.
Do you pay invoices for services from suppliers by direct debit?
- For a standard collection permit a new limit and period to which it is related must be newly set up. The limit may be set for a monthly, quarterly, half-year or annual period during which your account will be continuously debited in favour of the respective beneficiary by the maximum limit stipulated for this beneficiary (the set limit is the maximum amount/total of expected amounts to be paid to the beneficiary in the period you have chosen).
- For SIPO household payments you have to set up a monthly limit i.e. the amount which you expect to be charged by all service providers in a ´collection´ month. For amounts to be paid to Telefónica O2 (account No. 6007-700103393/0300) it is necessary to set up a limit which applies to the ´collection period´ in line with the settlement period of Telefónica O2.
- Take advantage of the opportunity to set the fields “limit“ and “period“ in your permits by the end of the year for free. If you do not do so by December 31, 2009 we will set a monthly limit from January 1, 2010 based on the sum of current direct debits. However, you can change both the limit and the period later (but for a fee according to the effective Price List).
Example:
If you set up a monthly limit of CZK 1,000 in a standard collection permit in favour of the respective beneficiary’s account for a month the beneficiary will be allowed to collect from your current account a maximum of CZK 1,000 per calendar month. It does not matter how many collection permits there are but the sum of collected amounts must not exceed the limit for the period in question (CZK 1,000 in your case).
Payment cards
If your card (either debit or credit) is lost or stolen we will block it permanently free of charge. Temporary blocks by a client will be free of charge as well.
From November 1, 2009 you will pay just for the period you use the payment card. For debit cards issued from November 1, 2009 we will charge a monthly fee for card maintenance, for existing debit cards the fee charging period will be changed from annually to monthly on the anniversary of the fee payment.
Authorised and non-authorised payments
Authorised payments
You are entitled to ask the bank to refund the amount of an authorised transaction by a payment card within 8 weeks after the payment. The reason for the request may be a higher amount shown on the account statement than that authenticated at the merchant’s. Please deliver the application along with information or documents confirming the facts.
Non-authorised payments
For non-authorised payments made by misused, lost or stolen payment cards you will be responsible for the loss until reporting the event to ČSOB not exceeding EUR 150 for all transactions (if you report the loss/theft immediately after you discover it).
If you have any questions about effects of the Law on Payments please send them to zops@csob.cz or contact your branch.