New reforms make it easier for people to switch bank accounts

New government reforms that are due to take effect from July 1st are expected to make it easier for people to switch bank accounts.

At the moment, a lot of Aussies are put off from changing their provider because there is too much red tape involved.

However, the updated legislation will ensure that disillusioned customers can move to another bank without informing their current account supplier.

From next month, you can simply tell a new lender which direct debits you want to move across and they will do the work for you.

Australian Bankers' Association chief executive Steven Munchenberg told National Features the alterations will create a much more competitive financial marketplace and give more power to the Aussie on the street.

"When banks know customers can walk without telling them first, then that is going to put them under more pressure to make sure they have got them a good deal," he was reported as saying.

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