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  • FIRST POST
    • pilotamx
    • By pilotamx 8th Oct 17, 10:08 AM
    • 18Posts
    • 0Thanks
    pilotamx
    Is currenct account switch reliable?
    • #1
    • 8th Oct 17, 10:08 AM
    Is currenct account switch reliable? 8th Oct 17 at 10:08 AM
    Hi,
    I have a question might seem useless. Is current account switch reliable?
    I am concerned about one or more direct debit might fails if the switch is done on a date close to the payment. I understand that there is a sort of protection guaranteed by the scheme. However, a failed debit will trigger an overdue procedure against me by the debtor.

    Moreover, does the creditor get the new account data with the switch procedure or I should consider updating my direct debit data after the switch?


    thanks
    S
Page 1
    • datlex
    • By datlex 8th Oct 17, 10:26 AM
    • 1,364 Posts
    • 1,151 Thanks
    datlex
    • #2
    • 8th Oct 17, 10:26 AM
    • #2
    • 8th Oct 17, 10:26 AM
    Yes it is reliable. You set the switch over date. The new details are automatically updated. If there was any issue then under the switch guarantee your new bank would be liable for any charges incurred.
    • Anthorn
    • By Anthorn 8th Oct 17, 11:44 AM
    • 3,160 Posts
    • 814 Thanks
    Anthorn
    • #3
    • 8th Oct 17, 11:44 AM
    • #3
    • 8th Oct 17, 11:44 AM
    Hi,
    I have a question might seem useless. Is current account switch reliable?
    I am concerned about one or more direct debit might fails if the switch is done on a date close to the payment. I understand that there is a sort of protection guaranteed by the scheme. However, a failed debit will trigger an overdue procedure against me by the debtor.

    Moreover, does the creditor get the new account data with the switch procedure or I should consider updating my direct debit data after the switch?


    thanks
    S
    Originally posted by pilotamx
    It's reliable as far as it goes which is not far enough. The problem is direct debit payees who might establish a new direct debit on your new account so they have two direct debits in force, one transferred from your old bank and the new one. In addition they might cancel the next direct debit payment so you'll need to carefully check your credit card statement for the new bank appearing as a direct debit. Might still not help: I did that with my Tesco Bank credit card and made a manual payment because the old bank was shown on the statement and lo and behold they charged the direct debit to my new account so I paid double what I intended to pay.

    In my recent switch to Starling Bank I had a particular problem with my American Express credit card direct debit. Upon receiving the switch notification Amex cancelled the direct debit fixed payment and demanded the full statement balance by direct debit which in my case was £649.48. Upon notifying Amex of their error they changed back to the fixed payment which would apply after the next statement so I still had to pay the full statement balance. Not difficult for me to pay but some people may have had difficulty.

    So yes the 7 day switch works well but be prepared for hiccups with DD payees which could turn out to be expensive hiccups.
    Last edited by Anthorn; 08-10-2017 at 11:46 AM.
    • pilotamx
    • By pilotamx 8th Oct 17, 12:49 PM
    • 18 Posts
    • 0 Thanks
    pilotamx
    • #4
    • 8th Oct 17, 12:49 PM
    • #4
    • 8th Oct 17, 12:49 PM
    Well I think I should carefully select a date in which no payment is due (maybe + and - 3 days).
    • bigadaj
    • By bigadaj 8th Oct 17, 1:28 PM
    • 10,356 Posts
    • 6,651 Thanks
    bigadaj
    • #5
    • 8th Oct 17, 1:28 PM
    • #5
    • 8th Oct 17, 1:28 PM
    Hi,
    I have a question might seem useless. Is current account switch reliable?
    I am concerned about one or more direct debit might fails if the switch is done on a date close to the payment. I understand that there is a sort of protection guaranteed by the scheme. However, a failed debit will trigger an overdue procedure against me by the debtor.

    Moreover, does the creditor get the new account data with the switch procedure or I should consider updating my direct debit data after the switch?


    thanks
    S
    Originally posted by pilotamx
    I've not had a problem in half a dozen switches or more but most of these have been spare accounts so no great consequence if things went awry.

    It would be wise to check things soon after the switch for your piece of mind however the bank to which you are switching should indemnify you against any issues and compensate you if you incur any fees or charges as a result of their error(s).
    • YorkshireBoy
    • By YorkshireBoy 8th Oct 17, 1:37 PM
    • 29,447 Posts
    • 17,230 Thanks
    YorkshireBoy
    • #6
    • 8th Oct 17, 1:37 PM
    • #6
    • 8th Oct 17, 1:37 PM
    ...you'll need to carefully check your credit card statement for the new bank appearing as a direct debit.
    Originally posted by Anthorn
    I've had many credit cards over the years and on none of the statements have they ever told me which account they'll be calling the funds from. In my experience all they say is "Your payment will be collected from your nominated account on xx/xx/xx".
    Well I think I should carefully select a date in which no payment is due (maybe + and - 3 days).
    by pilotamx
    That might not always work with credit cards. With many providers the DDI needs to be in place on the statement date, not the payment due date.
    • dj1471
    • By dj1471 8th Oct 17, 3:34 PM
    • 874 Posts
    • 575 Thanks
    dj1471
    • #7
    • 8th Oct 17, 3:34 PM
    • #7
    • 8th Oct 17, 3:34 PM
    Well I think I should carefully select a date in which no payment is due (maybe + and - 3 days).
    Originally posted by pilotamx
    I'd allow 1 - 2 weeks.

    When you switch your old DDs are cancelled and new ones are setup, this takes several working days depending on the payee and new bank. Furthermore DD payments take 3 working days to clear so are typically requested 3 days ahead of the due date, by which time the setup needs to have finished. And... depending on the payee, if a bill is produced while the new DD is being setup it may well require manual payment. So to avoid issues as far as possible you need to avoid billing dates and payment dates. I've fallen foul of this before.

    Mistakes happen too. During my last switch my new bank informed my payees of the switch twice. The result being that they all tried to setup a new DD twice, with the second attempt failing because an identical DD already existed. The result? DD setup failed, manual payment required...
    • bigadaj
    • By bigadaj 8th Oct 17, 4:20 PM
    • 10,356 Posts
    • 6,651 Thanks
    bigadaj
    • #8
    • 8th Oct 17, 4:20 PM
    • #8
    • 8th Oct 17, 4:20 PM
    I'd allow 1 - 2 weeks.

    When you switch your old DDs are cancelled and new ones are setup, this takes several working days depending on the payee and new bank. Furthermore DD payments take 3 working days to clear so are typically requested 3 days ahead of the due date, by which time the setup needs to have finished. And... depending on the payee, if a bill is produced while the new DD is being setup it may well require manual payment. So to avoid issues as far as possible you need to avoid billing dates and payment dates. I've fallen foul of this before.

    Mistakes happen too. During my last switch my new bank informed my payees of the switch twice. The result being that they all tried to setup a new DD twice, with the second attempt failing because an identical DD already existed. The result? DD setup failed, manual payment required...
    Originally posted by dj1471
    But for a cass switch the bank to which you're moving your account is liable for any errors.
    • dj1471
    • By dj1471 8th Oct 17, 4:26 PM
    • 874 Posts
    • 575 Thanks
    dj1471
    • #9
    • 8th Oct 17, 4:26 PM
    • #9
    • 8th Oct 17, 4:26 PM
    But for a cass switch the bank to which you're moving your account is liable for any errors.
    Originally posted by bigadaj
    They are indeed, but you're still liable for closely monitoring your accounts/bills etc. and sorting out any issues that do occur with your payees.
    • Don80
    • By Don80 9th Oct 17, 10:27 AM
    • 187 Posts
    • 71 Thanks
    Don80
    Hi. I have used the CASS and had no problems at all, everything was transferred within the 7 days. All my payments were made without problem. I may have been lucky with payment dates, but it worked for me. :-)
    • bigadaj
    • By bigadaj 9th Oct 17, 11:32 AM
    • 10,356 Posts
    • 6,651 Thanks
    bigadaj
    They are indeed, but you're still liable for closely monitoring your accounts/bills etc. and sorting out any issues that do occur with your payees.
    Originally posted by dj1471
    Yes but the OP seems to have focused on the issues and potential liabilities and penalties, these are covered by the receiving bank.

    Everyone should be monitoring their bank accounts in any case, closely or not
    • JuicyJesus
    • By JuicyJesus 9th Oct 17, 12:12 PM
    • 3,014 Posts
    • 3,110 Thanks
    JuicyJesus
    I've switched multiple times now - on my sole account from first direct to Halifax to Co-op to TSB to Nationwide; on my joint account from HSBC to Halifax to Nationwide. Each one went through without a hitch, with the exception of the last one where two DDs were changed too close to the payment date - one company (my home insurer) sent me a letter and just took the payment a week later, the other (my energy company) just said to make the payment by debit card instead and made up the payment that way. No real hassle.

    It's as reliable as anything else, really.
    Last edited by JuicyJesus; 09-10-2017 at 12:15 PM.
    urs sinserly,
    ~~joosy jeezus~~
    • Jibeddy
    • By Jibeddy 9th Oct 17, 1:11 PM
    • 48 Posts
    • 18 Thanks
    Jibeddy
    In my experience (5 switches so far), I've never had an issue. I've had direct debits come through during the switch and even on the final day of the switch which went through without issue,

    Again this is my own experience though, there's obviously a guarantee in there for a reason!
    • Don80
    • By Don80 9th Oct 17, 5:01 PM
    • 187 Posts
    • 71 Thanks
    Don80
    I've switched multiple times now - on my sole account from first direct to Halifax to Co-op to TSB to Nationwide; on my joint account from HSBC to Halifax to Nationwide. Each one went through without a hitch, with the exception of the last one where two DDs were changed too close to the payment date - one company (my home insurer) sent me a letter and just took the payment a week later, the other (my energy company) just said to make the payment by debit card instead and made up the payment that way. No real hassle.

    It's as reliable as anything else, really.
    Originally posted by JuicyJesus
    Have you managed to get switching bonuses for all these? Don't banks only pay out once? I know the current Halifax offer explicitly says that - "Only one offer is available per customer. Joint accounts will only be eligible for one payment. If any joint account customer has already benefited from the offer in their sole name, no payment will be made for that joint account."
    • Anthorn
    • By Anthorn 10th Oct 17, 7:05 AM
    • 3,160 Posts
    • 814 Thanks
    Anthorn
    I've had many credit cards over the years and on none of the statements have they ever told me which account they'll be calling the funds from. In my experience all they say is "Your payment will be collected from your nominated account on xx/xx/xx".That might not always work with credit cards. With many providers the DDI needs to be in place on the statement date, not the payment due date.
    Originally posted by YorkshireBoy
    Maybe you don't have the same credit cards that I have? Do you think that could be possible?

    However, so they don't know which account is to be direct debited and neither do you? Far fetched I'd say.
    • Anthorn
    • By Anthorn 10th Oct 17, 7:16 AM
    • 3,160 Posts
    • 814 Thanks
    Anthorn
    Well I think I should carefully select a date in which no payment is due (maybe + and - 3 days).
    Originally posted by pilotamx
    Might not help with the first problem I highlighted which is duplicated direct debits, i.e. one transferred from your old account and a new one established by the payee on your new account. This problem does need looking at by the switch service because when you delete the old direct debit transferred from your old account you could be at risk of having the account you're paying cancelled or a fee charged.

    A further problem I've encountered is with Lloyds Insurance Services: My monthly premium is due soon and I noticed that their DD has been removed from my new account most likely by them. I phoned them to advise them and they told me not to worry as the DD sent to my old bank will be automatically transferred to and paid by my new bank.

    I'd say that the one and only way to avoid DD disasters with an active account switch is to cancel all the direct debits and start new ones at the new bank. But that may not be a workable solution due to possible fees charged for not paying by DD or paying manually by debit card.
    • YorkshireBoy
    • By YorkshireBoy 10th Oct 17, 11:06 AM
    • 29,447 Posts
    • 17,230 Thanks
    YorkshireBoy
    Maybe you don't have the same credit cards that I have? Do you think that could be possible?
    Originally posted by Anthorn
    Indeed it could be. Please could you say which card(s) you've got/had that offer such a useful statement feature.
    • JuicyJesus
    • By JuicyJesus 10th Oct 17, 11:46 AM
    • 3,014 Posts
    • 3,110 Thanks
    JuicyJesus
    Have you managed to get switching bonuses for all these? Don't banks only pay out once? I know the current Halifax offer explicitly says that - "Only one offer is available per customer. Joint accounts will only be eligible for one payment. If any joint account customer has already benefited from the offer in their sole name, no payment will be made for that joint account."
    Originally posted by Don80
    I got a bonus for Halifax and TSB for my sole account, but have never had a switching bonus for any other sole accounts or the joint account. My partner got one for her switch to Halifax, and another one (the £100 each) after I recommended her to Nationwide however.

    It was always sole accounts switched first, then joint accounts to ensure we were both eligible for the bonus.
    urs sinserly,
    ~~joosy jeezus~~
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