MSE News: Switching bank accounts to be made easier

masonic

chambta wrote: »

The comment was related to credits coming into accounts.

Well then, no, banks can't get at those details at the moment. They will switch your salary across, but only after you give them details of your employer.

The bit in the article about this is unclear. I don't think it is meant to read as if anybody transferring money into your account would be contacted by the bank.

masonic

Consumerist wrote: »

I had a savings account for which NatWest was a "linked account" (normally a linked account is the only account to which payments can be made from an account) - that incoming payment to NatWest was also diverted to the new bank. That one took me by surprise when I though the payment had gone missing in transit; it turned up in the new current account.

So payments into a switched account also seem to be switched along with the outgoing payments.

Probably because you had a direct debit set up for moving money in the other direction. Switching the direct debit would change the linked account.

Consumerist

masonic wrote: »

Probably because you had a direct debit set up for moving money in the other direction. Switching the direct debit would change the linked account.

Yes, I seem to recall there was a direct debit arrangement involved.

Mobeer

The proposal talks about making switching trouble free, but what protection exists if trouble occurs? For example, if a payment in is not switched but a payment out is switched and then the new account goes overdrawn, will the new bank guarantee payment with an interest free overdraft facility?

masonic

Mobeer wrote: »

The proposal talks about making switching trouble free, but what protection exists if trouble occurs? For example, if a payment in is not switched but a payment out is switched and then the new account goes overdrawn, will the new bank guarantee payment with an interest free overdraft facility?

The account switching services we have at present normally have terms that allow you to reclaim any charges incurred as a result of the switching process. It is unlikely that guarantee would be taken away.

cottager

Would business bank accounts be included in this?

Twister84

Mobeer wrote: »

The proposal talks about making switching trouble free, but what protection exists if trouble occurs? For example, if a payment in is not switched but a payment out is switched and then the new account goes overdrawn, will the new bank guarantee payment with an interest free overdraft facility?

Here's some information on the current A/C switching service for Natwest : http://www.natwest.com/personal/current-accounts/g2/switching-to-us/dedicated-team.ashx

It mentions what happens to direct debits & standing orders, ie do you want to check them before they get transferred.

It also mentions the situation you've mentioned above - as part of the account switching, if there are any issues and you incur charges, they will be refunded.


A new a/c switcher process is being trialled where I work to make the whole process "slicker" and it includes text alerts to update you throughout the whole process.

Eco_Miser

We want a comprehensive switching system that makes life easy for the customer – so that all outgoing and incoming payments are automatically switched too.

But I don't want to switch all the payments into my 40 year old account to a new account that I may wish to open (got 4 others already, but who knows what bargains may come in future), and I certainly don't want to close that account.

System

Obviously the enhanced switching process will still need to be flexible and tailored to match the customer's requirements. The new bank will not blindly move all your incoming payments and / or outgoing D/Ds and S/Os without your permission. The switching forms will need to ask the relevant questions, if the customer ticks a box to say transfer everything and close the old account, then the new bank will arrange it all for you. Many banks already have a switching process which covers most of these features, but salary payers currently require a letter of authority direct from their employee to inform of a change of bank account (banks can currently draft the letter on your behalf, often via an online form, but you sign it and send to your employer)

The idea I would assume is to further simplify these processes by creating a communication method between banks and salary payers that enables the customer's authority to be sent electronically.

If you do not trust the new bank to carry out the switch for you, then you may want to reconsider opening an account with them in the first place