How can we prepare ourselves for future banking disasters???

Gentoo365

For the majority of people the simplest solution is to have a couple of credit cards (one Visa, one Mastercard) with difference banking groups. This will be sufficient for most people.

For people who cannot get credit then having some money in another account is probably needed. Bear in mind that some smaller banks use the payment systems of other banks. HSBC outsource a lot, as do Barclays. So ask if the bank is directly connected to the payment systems, or reliant on another bank. If they are reliant, then make sure that you are spread across two payment systems.

The other issue could be a breakdown in all banks and payment systems. In that case you would need to rely on cash (or stocked cupboards/freezers).

Worth remembering though that if this happened again the FSA would tell the bank affected to open branches and allow cash withdrawals. So you would only need to get to the branch.

Of course, remember that this could happen when you are away from home, or on holiday. So if you are going away then it is probably best to ensure that you have enough cash for the basics and have paid for as much stuff as you can in advance.

innovate

stclair wrote: »

It's unlikely a miss payment would registered for a payment that is a few days late with the CRAs Experian has already confirmed this in the media hype.

Hadn't seen anything from Experian on this - - would of course be super if the CRAs could prevent default markers to start with.

However, as I understand it, Experian just record what banks etc send to them. Would you have any confidence whatsoever that Natwest will not report defaults until they have sorted this mess? Would e.g. O2 or Vodafone or Sky etc etc etc not send defaults to Experian because their Natwest DD attempts were unsuccessful?

Also, there are a number of people who didn't get paid, into other banks, because their employer wasn't able to send the money from Natwest. I doubt that there is anything in any bank's software that says "if overdrawn because payment from bank xyz didn't arrive in time, do not send default marker".

I would not rely on anyone else properly taking care of my CRA data during this mess.

MoneySaverLog

Trying to get credit files sorted after the fact is at best a nuisance, and at worst an annoyance with time needed to be spent proactively looking into the details, writing to the companies involved and asking for them to reconsider. With no guarantee that the company would amend a late payment marker as techincally the data is accurate, the fact it's down to banking issues is something you can put on your file in your defense but the damage is done.

I think it would be far better to try and pay the bills by some other means if you have cause to believe the DD will fail. It's not worth the risk or the time involved trying to get things cleared up.

Dr_Cuckoo3

innovate wrote: »

Hadn't seen anything from Experian on this - - would of course be super if the CRAs could prevent default markers to start with.

This is what Experian said ;

http://www.guardian.co.uk/money/2012/jun/22/natwest-questions-answered?newsfeed=true

"One of the major credit reference agencies, Experian, says it has spoken to NatWest and received assurance that any overdraft activity (unauthorised borrowing or bounced cheques for example) caused by the IT error will not be recorded on a customer's credit files.

Experian spokesman James Jones said: "Other creditors should not register as late any payment to them until it is late by at least seven to 10 days. This is an agreed industry standard. So, assuming this is a short-term blip, as long as any delayed payments are subsequently made, these should not show up on someone's credit file.""

loony2012

This is the 2nd saturday it has happened to me. Last time it took until teatime before i got funds. I got a nice £100 gesture of good will since i had to beg at hospital for baby milk as i had newborn twins Got receipts from hospital for bank as proof.

huckster

And you believe Experian ?

7-10 days late. Is that optimistic ?

MoneySaverLog

huckster wrote: »

And you believe Experian ?

7-10 days late. Is that optimistic ?

This coming from a company that refuses to do anything affecting a end user consumer unless it has clarification from the company or bank who put the data on the credit file first.

These files can be a nightmare to sort out taking at least 28 days.

Fiddlestick

It's probably best keeping a spare account with a completely different banking group "just in case".

My main bank is First Direct, but I also have a backup account with LLoyds TSB that has access to a small overdraft that I can use in a pinch.

I also have a credit card with them that I never use and keep around for emergencies, so if something went wrong with Visa or their infrastructure I would have a backup Mastercard that could be used.

I think I'm *reasonably* well covered

Dr_Cuckoo3

huckster wrote: »

And you believe Experian ?

7-10 days late. Is that optimistic ?

who me ? - where did I say I believe him

I am merely ensuring that Experian's remark is recorded on the forum in the event that it is necessary to return to the issue in the (near) future

MoneySaverLog

Fiddlestick wrote: »

It's probably best keeping a spare account with a completely different banking group "just in case".

My main bank is First Direct, but I also have a backup account with LLoyds TSB that has access to a small overdraft that I can use in a pinch.

I also have a credit card with them that I never use and keep around for emergencies, so if something went wrong with Visa or their infrastructure I would have a backup Mastercard that could be used.

I think I'm *reasonably* well covered

Why would you have your main bank account with First Direct, they pay no interest on their current account like LTSB do.

Personally I only use FD for the 8% regular saver account, but yes if push comes to shove I could resort to them. My secondary bank is with NatWest (Though DD's come from this account), third is Nationwide, 4th HSBC/FD would be my order of doing things.