New ver­sion of Lands­bankinn’s Gen­er­al Terms and Con­di­tions

The new Terms enter into effect as of 1 October 2021 as regards new customers. For current customers, the older version is valid until 30 November 2021, with the new version entering into effect as of 1 December 2021.

Landsbankinn’s General Terms and Conditions (new version)

Main content changes to the General Terms and Conditions are:

• Provisions on the processing of personal data are updated (Section 2.1).
• A new provision is added on the recording of phone conversations and storing of electronic communication (Section 2.1).
• A new provision is included on the Bank’s right to unilaterally terminate power of attorney if the Bank considers that there is danger of misconduct, fraud, money laundering or similar, and that power of attorney automatically becomes null and void upon a demise, the cancellation of legal guardianship, or deprivation of the financial competency of the customer or proxy (Section 2.7).
• An explanation is provided of what constitutes authentication (verification method) and personalised security credentials (e.g. PIN), cf. new Act on Payment Services No. 114/2021 (Section 3.1).
• A unique identifier number/code is added as an example of personalised security credentials (Section 3.1).
• New provisions are added on precautionary obligations and the customer’s obligations with respect to false messages, as well as instructions on the subject (Sections 2.9, 3.1 and 5.4).
• Provisions on corporate online banking are updated (Section 3.2).
• An explanation is provided on the Bank’s use of terminology for payment accounts and that whether or not an account constitutes a payment account in accordance with the Act on Payment Services depends on the nature of each account (Section 4.1).
• Provisions on payment services are updated in accordance with the new Act on Payment Services (Section 4.3).
• The timing of reception and execution of payment orders are updated to reflect execution (including the interbank system of the Central Bank of Iceland and SEPA) and the Act on Payment Services (Section 4.3).
• It is noted that if the user of the Bank’s payment services is not a consumer, certain provisions of the new Act on Payment Services do not apply to the service (Section 4.3).
• A provision on interest rate changes for deposit accounts is aligned with the new Act on Payment Services (Section 4.6).
• Provisions on payment cards are aligned with the new Act on Payment Services (Chapter 5).
• It is noted for clarification purposes that the international terms and conditions of the relevant payment card company (e.g. VISA or MasterCard) also apply to payment cards and are published on their websites (Section 5.1).
• A special chapter (Chapter 6) is dedicated to liability for payment services in accordance with the new Act on Payment Services.
• A provision is incorporated allowing the Bank to close accounts or other services or terminate a business relationship for inter alia such reasons that the business relationship does not conform to the Bank’s risk policy (Section 4.9 and 7).

 Those provisions of the Terms that fall under the scope of the Act on Payment Services constitute a framework agreement for payment service between the customer and the Bank, as defined by the Act on Payment Services. Current customers are entitled to notify the Bank of termination of the framework agreement on payment services prior to 1 December 2021, should they not wish to approve the amendments introduced in the new version. Current customers are considered to have approved the changes if they do not notify the Bank otherwise prior to 1 December 2021.