bank switch now missed payments - help

tilly_mint_2

Hi there
am wondering if anyone can help....we switched to the co-op recently however we have just found out that 2 loan payments have been missed!!!
We recieved a letter from tesco informing us we were in arrears by dec and jan payments (this is the first we'd heard), at the same time this letter arrived, so did our first bank statement from the co-op confirming this!!

I called Tesco paid the arrears straight away and asked them why our account was in arrears, they 'checked' and gave me the correct bank account information for the co-op they told us that the instruction had been returned as the Co-op hadn't activated it!! - I asked them why they didn't inform us in December they told us they didn't have contact number!!!!! :mad:

I called the Co-op they tell me that the DD is live and Tesco have never tried to get the payment.

What do I do now as we have defaulted on our loan through technical issues!!

I need to know who is telling the truth as both companies blaming each other while our credit rating has gone down the pan!!:mad: How can I rectify our credit rating now?

Any advise much appreciated, Thank you

Gromitt

Sorry to hear about your problems, but this site is practically littered with bank switchings that have gone sour, it seems very rare that you'll get a 100% successful switch, which is why a lot of people refuse to use automated switching and prefer to move and check each DD themselves. Some companies will try to debit your old account when its been closed, some try to setup the new DD too early, etc.

The standard advice is to always phone and check your details at least 10 days before the DD is due to be used.

Surely you thought it was strange when you got your first statement and noticed Tesco had not been been paid? This would have been the ideal time to ring up Tesco and fix things before they got out of hand.

System

Did you use the Co-op bank's switching service to automatically switch all your Direct Debits to the new account ?

If you did, then the Co-op bank should have sent an electronic message to each company who have a Direct Debit set-up on your old account, this electronic message would have informed the company (in this case Tesco) of the new bank account details to use.

If you did not use the bank's switching service, then you must have contacted tesco to inform them of the change of bank details.

You should be able to check the status of your Direct Debits if you have online banking.

During these bank account switches it is a good idea to keep a close watch on all payments that are due to make sure they are paid on time. Do you not have access to online banking for the new account - you should have seen that these payments had not been made.

jalexa

tilly_mint wrote: »

they told us that the instruction had been returned as the Co-op hadn't activated it!! - I asked them why they didn't inform us in December they told us they didn't have contact number!!!!! :mad:

What do I do now as we have defaulted on our loan through technical issues!!

I need to know who is telling the truth as both companies blaming each other while our credit rating has gone down the pan!!:mad: How can I rectify our credit rating now?

You need to raise a formal complaint with each organisation. Do not worry at this stage who is telling the truth, that will come out in the wash as the organisations desperately try to avoid the prospect of a £500 Financial Ombudsman Service case fee.

You use the word "default" but I don't think there has been a "default". However it is possible that adverse payment markers have been lodged. You say your credit rating "has gone down the pan". Do you know that for certain? If not you need to check your Equifax and/or Experian credit reports for evidence of late payment markers. £2 statutory reports will suffice.

Regarding Tesco, the complaint grounds seem obvious to me. Complain that they claimed not to have a "contact number" but did not write even though they clearly held your address. I think they just shot themselves in the foot.