Being charged for failed direct debits on new account

bristolguy2

HI everyone,

First time posting and sadly its about a problem with the bank! I am currently banking with barclays and was tempted by the offer on here for switching to alliance and leicester (£100 incentive).

When I signed up for the account I selected to have my direct debits transfered over but opted to transfer my wage manually as it was easy enough for me to go into HR in work once I confirmed the direct debits had been moved.

Recieved an email confirmation and promptly went into the local branch to find out when I would need to move my wage over as I didnt want to incur any overdraft/direct charges. The woman in the branch advised me not to worry as they would first send a letter out confirming the moving of my direct debits that I would have to sign before they moved them across to the new account.

Over 8 weeks passed and I heard nothing back, I wasnt worried as my barclays account was fine, I got a letter today from the water comapny for a failed direct debit which after sorting out, transpires my direct debits have already been moved and I had not been notified (or recieved and signed the letter). So i called Alliance and leicester today and have been advised I've been charged £50 for 2 failed direct debits. Can they legally do this when I didnt recieve the required paperwork?

Thanks for taking the time to read my post and any advice given

jonesMUFCforever

If you have no money in an account and something goes out making it overdrawn expect to get charged.
I would telephone A&L to see if they will refund them but as you did not let them do all of the transfer work they might refuse.

Consumerist

Unfortunately, this account has been notorious on this site for its complexity and you too may have fallen foul of its requirements.

To qualify for this offer you must switch all your Direct Debits using our Switching Service and meet the monthly funding requirements (you must pay at least £500 into your account each month).

Generally, the date of "account opening" has been taken to be the date of your application. You didn't make it clear whether you had paid into the account after the switching period. If you did not, unfortunately, you won't qualify for the £100 incentive payment.

According to their Current Account User Guide (p.17)

The switching period starts when we process a correctly filled-in Switching Service Authority Form and ends when we have written to you to confirm that we have completed our switching activities.

They don't charge (authorised) Overdraft Usage Fees during the first 12 months but, from what you have said, it seems that you may have exceeded your overdraft limit after the 3-month switching period. If, however, you did not receive any written confirmation of the completion of the switching activities then I think you should start the bank's formal (written) complaints procedure.

You should contact their "Let's Work It Out" team first; you can email them at: [EMAIL="LetsWorkItOut@alliance-leicester.co.uk"]LetsWorkItOut@alliance-leicester.co.uk[/EMAIL]. If you are not satisfied with their response then you should put your complaint in a letter. Head any letters "Complaints Procedure" so it is clear that it is formal complaint and not just an enquiry. If you are not satisfied with their final response then you may be able to complain to the Financial Ombudsman Service. It's a free service so you have nothing to lose. See this MSE page for some details of the FOS complaints procedure.

bristolguy2

Hi,

Thanks for your help. The email address you mentioned is missing a prefix letsworkitout@alliance. ?

Best Regards, Guy

-- Edit--

Sorry, just clicked on it and have the full address

bristolguy2

Thank you so much for you help! I have been successful in getting back my direct debit charges now and am currently working on them to get me £100 switching fee.
They advised me this period of time has ended and that I am no longer eligible. However, looking at the terms and conditions...

"The switching period starts when we process a correctly filled-in Switching Service Authority Form and ends when we have written to you to confirm that we have completed our switching activities."

The definition of the start of the switching period is "when we process a correctly filled-in Switching Service Authority Form"

As they have not recieved any form, this period of time could not possibly have started as I have not filled in any form, let alone a correctly filled-in form. Will keep everyone posted with the outcome!

Thanks again for everyones help, especially Consumerist

pippitypip_2

I did the same and my Barclays account was closed (long other story).

If you have the option to keep your Barclays account I would do so, qualify for the £100 with A&L - get it and then switch back to Barclays.

Loads of A&L threads - they are a complete disaster zone, esp with online banking operating 24 hours behind. Barclays imho miles better.

hth,
pippitypip

Consumerist

bristolguy2 wrote: »

As they have not recieved any form, this period of time could not possibly have started as I have not filled in any form, let alone a correctly filled-in form. Will keep everyone posted with the outcome!

Your online application may be construed to be a form for the purpose of this requirement.

Accordingly, the date of your application is probably going to be the start of the switching period but you should verify the date with A&L.

Good luck.