Mortgage interest electronic transfers

mikeytxm

Here's a topical bank story concerning payments by electronic transfer. I'll try and be brief.
Nearly all the large banks are members of APACS. With effect from June 2008 Standing orders were supposed to be made on the same day by a system known as the Faster Payment Service. Guess what..It’s not happening on all accounts.

I had an endowment shortfall on my mortgage with Halifax and arranged to transfer extra sums of money in addition to my normal monthly mortgage payments from my Citi bank current account. It’s taking 3 to 4 days when it should be done on the same day following the introduction of the Faster Payment Service. This month it took 5 days.

There seems to be a bit of collusion going on between the banks and it’s difficult to determine why the banks allow the Faster Payment Service on some accounts and not others. I phoned Citi bank and was told that they have not started the new system as yet although they are members of APACS.
HBOS seems to allow the FPS on its current accounts but not to its mortgage accounts. Both Citi & HBOS are APACS members.

The only conclusion you can draw is that it suits the banks not to operate FSP and delay payments to those accounts that they charge interest. Peculiarly the direct debit from CITI bank to Halifax is done on the same day so why aren’t standing orders.

Yet again the banks are behaving in their usual money grabbing style. They are members of APCAS but chose to ignore its recommendations where there’s a fast buck to be made.
It’s probably costing Joe Public billions.

Robert_Sterling_3

mikeytxm wrote: »

It’s probably costing Joe Public billions.

Hard luck Joe.