Direct Debit Switching

mparter

I'm moving from RBS and after reviewing various articles on financial websites, I thought that A&L were a good option. So I signed up online and opted to use their switchign service.

I've now had a change of heart after reading all the bad experiences on here so I applied for a First Direct account. I've had the form for this to sign and sent this of so I'm jst waiting on the final ok. In the meantime, I'm wodnering how this direct debit switching lark happens.

I've received the card and account details for A&L but no mention of if/when the DD will be migrated. My mortgage payment is due on the 1st June and I don't want a bank !!!!-up screwing up my perfect payment record (especially given the current financial climate).

Do A&L tell you when they've transfered the direct debits? I think I'm feeling anxious about this because I'm not in control and switching the payments myself.

jambosans

I don't know how A&L switch Direct Debits but I have an understanding of Bank of Scotland's procedure, and I'm sure it will be similar. An AATS (Account Automated Transfer Service) is not as magical as it sounds. Basically it involves your new bank writing to your old bank and asking for a list of standing orders and direct debits. When they get the list back the standing orders will be set up no problem, however they then have to inform the DD Originators (the companies you pay) of your new account details. Now the companies are under no obligation to change the details over (but there isn't really any reason not to). The new bank should also request the old bank to cancel the mandates on the old account.

BoS write to you at each stage of the process (mostly for confirmation purposes and to make sure they haven't missed anything out). So I would imagine A&L do the same.

Don't take what I've told you as gospel truth, for example I don't think they write to the banks, I'm sure it is automated. Perhaps someone with more knowledge will explain in detail.

On a closing point, AATS do go wrong. Now that's not a guarantee that yours will, but what I want to highlight is that because it is all based on information requests it can go wrong. A Direct Debit missing here, a standing order missing there, which will cause delay. I'm sure some banks are better at doing AATS than others but unless you have hundreds of mandates or there is an incentive for using the switching service, I would do it yourself.

mparter

Thanks jambosans. I would've done it myself but the £100 for using their switching service was a big draw.

How does it work with regards direct debits that are due soon. Are they still paid from my old account or new one? I currently have no funds in my A&L account so if they were to transfer the direct debits before then, I'd be massively overdrawn!!

Mightyowl

Make sure you ring your mortage lender too confirm they have the new details. I had a problem when switching banks, thought everything was okay then i recieved a letter saying i'd missed a payment... Gutted i was because it's now showing as a missed payment on my credit report.

PaulW922

I did this about a year ago - you get a letter from your new bank telling you when the switch is complete. Until then you probably need to fund your old account. It is important to check your payments have gone out, to avoid the problem Mightyowl had.

flossy_splodge

A&L send you (by post) a list of all the DD's etc that they have been told will be transferring to you.
You then need to confirm them or not.
If you do not respond within the number of days stated they go ahead and switch it all over.
Beware though as they do NOT transfer over any regular incoming money if it is not your main salary unless you specifically ask them to - could leave a shortfall in new account to meet outgoings.
I too would recomend you do NOT go with A&L. :eek:
Their staff are unbelievably rude and patronising on the phone and don't appear to want to listen to ANY explanations as they already know it all.
Dreadful bank.:mad:
I will be leaving as soon as my 1st year is up (about 2 months to go).
Luckily kept my old account open!:D

jambosans

mparter wrote: »

How does it work with regards direct debits that are due soon. Are they still paid from my old account or new one? I currently have no funds in my A&L account so if they were to transfer the direct debits before then, I'd be massively overdrawn!!

Well it all depends how quickly your new account details are sent through to the DD Originators and the Direct Debits are setup. Below is a link to the A&L Switching Service guide on their website that explains the process:

A&L Switching Service

Normally your new bank will provide you with a "switchers overdraft". Basically this will be a larger than normal overdraft that allows payments to leave the new account if they are moved over before your salary. If you've not been granted a normal fixed term overdraft then the switchers may drop off after the AATS is complete. However according to that link, A&L seem to guarantee no charges, so they may not grant you an overdraft but instead allow an unauthorised one without charges. Did A&L not match the overdraft you had on your previous account?

Like PaulW922 has said, the best thing to do is constantly check both accounts, if you have online you should be able to see when your Direct Debits show up on the new account. This, in turn, will indicate which account the funds are going to leave from.

mparter

Looks like it's probably better to do it yourself, although most places seem to offer you a £100 for switching, is this to make sure you keep your account??

I've applied for a First Direct account, just have to hope I get it. Although they also do automatic switching so this could get interesting if they accept me and I try to switch to them now.

jambosans

mparter wrote: »

I've applied for a First Direct account, just have to hope I get it. Although they also do automatic switching so this could get interesting if they accept me and I try to switch to them now.

Are you going through an AATS with A&L just now? I would not advise starting another AATS to First Direct if the A&L switch from RBS is not complete. You could be creating more problems for yourself.

withnell

You should let A&L know that you no longer want to switch to them - if nothing else it's courteous, and they may be able to stop something at their end so your DD's are not switched!

mparter

I've had no confirmation from A&L yet and I've also not had acceptance from First Direct yet so I'm in limbo land. If I get the First Direct account, I'll inform A&L, which will hopefully be before the AATS process starts. Given that it takes them sometime to send it out to you and that they wait 14 days before automatically doing it, I'm guessing I should be fine as I should know one way or the other if First Direct are having me or not.