reversing on Nationwide Switching service causing unpaid direct debit notices

innovate

JuicyJesus wrote: »

The new system from September-ish should make things a hell of a lot easier in this regard. Although I'm still not sure if it'll have any mechanism for reversing a switch once it starts given the redirection aspect.

I doubt very much they will cater for people who change their mind half way through the process and don't even tell them about it.

innovate

pqrdef wrote: »

FlexDirect is a lottery. The way they're working it, you have to commit yourself before Nationwide commit themselves on incentives.

What are you on about? All the information about Flexdirect is there in minutest detail on the Nationwide website.

will.moindrot wrote: »

No the application process was pretty unclear on the point of success in getting an overdraft or the promo rate. The information was absent, rather than saying specifically that there was no interest (an no benefits) of the FlexDirect.

What info was absent? I agree they won't tell you how much overdraft if any you will get. However, they tell you very clearly that, provided you meet the pre-reqs, the interest will be 5% AER on up to £2.5K for 12 months. Thereafter the interest rate will revert to 1%.

I also seem to recall that the confirmation screen right at the end of the application actually tells you about the 5%.

pqrdef

JuicyJesus wrote: »

1. Nationwide is a building society, not a bank.

And yet strangely obsessed with whether it's got your main current account. No other BS asks for £1000 a month. No other BS has tried to muscle in on bank territory and failed to meet a sticky end. That's because the others weren't evil enough. Nationwide will only survive in bank territory by thinking like a bank.

JuicyJesus wrote: »

2. It's only "hazardous" if you want the extra incentives as your sole reason for switching, not to actually move your banking facilities

The authorities want more "competition", and they measure this by how many people switch. If everybody finds a bank they like and sticks with it, they'll say the market isn't working.

When people complained about energy priices, the government's response was to launch a campaign to encourage people to switch. But the main benefit of switching comes from milking incentives and introductory offers. Few switchers have any idea what they'll pay when they're in the keepnet - pointless question, since they can switch again.

This is the direction banking is going in.

JuicyJesus

pqrdef wrote: »

And yet strangely obsessed with whether it's got your main current account. No other BS asks for £1000 a month. No other BS has tried to muscle in on bank territory and failed to meet a sticky end. That's because the others weren't evil enough. Nationwide will only survive in bank territory by thinking like a bank.

As in, making sensible business decisions to not give away valuable services for free where there is no value given in return?

Yes, that's very evil.

The authorities want more "competition", and they measure this by how many people switch. If everybody finds a bank they like and sticks with it, they'll say the market isn't working.

Which is moronic.

When people complained about energy priices, the government's response was to launch a campaign to encourage people to switch. But the main benefit of switching comes from milking incentives and introductory offers. Few switchers have any idea what they'll pay when they're in the keepnet - pointless question, since they can switch again.

This is the direction banking is going in.

Similarly, that is a moronic way for things to be.

And most people don't go for introductory offers the way a small minority on MSE do. Most just pick a bank with a decent intro offer or something else that suits them and stick with them. It's only a few who actively tart around looking for who does the best bonuses.

Also, energy is a poor comparison, since bank accounts are a much more complex product than electric power and gas. If I terminate a gas switch halfway through, I can still run my boiler. If I terminate my bank account switch halfway through it leaves a total mess.

olly300

pqrdef wrote: »

And yet strangely obsessed with whether it's got your main current account. No other BS asks for £1000 a month. No other BS has tried to muscle in on bank territory and failed to meet a sticky end. That's because the others weren't evil enough. Nationwide will only survive in bank territory by thinking like a bank.

The fact that Nationwide agreed to merge in other smaller societies during the financial crisis to help ensure there was still a BS movement in the UK, and that they have always made it difficult for people to get mortgages from them means they are hardly acting like a bank.

They want more current account customers because economies of scale means it's cheaper to have lots of customers using an IT system especially if these customers are restricted to the amount of debt they can get into.

The fact they ask you to pay £1000 a month comes from people who use to open Nationwide current accounts for using it on holiday in Europe. If you aren't using an account it costs the bank/BS more money than they gain.

Metrobank will do something similar once they are happy with their market share.

rb10

pqrdef wrote: »

And yet strangely obsessed with whether it's got your main current account. No other BS asks for £1000 a month. No other BS has tried to muscle in on bank territory and failed to meet a sticky end. That's because the others weren't evil enough. Nationwide will only survive in bank territory by thinking like a bank.

For one, the Coventry asks for £1k/month.

No building society has 'met a sticky end' due to providing current accounts.

It is a sensible business decision - and in the interests of their members - to have a requirement like this on current accounts.

w81

innovate wrote: »

What info was absent? I agree they won't tell you how much overdraft if any you will get. However, they tell you very clearly that, provided you meet the pre-reqs, the interest will be 5% AER on up to £2.5K for 12 months. Thereafter the interest rate will revert to 1%.

I also seem to recall that the confirmation screen right at the end of the application actually tells you about the 5%.

I have a problem with this. On paper I meet the pre-reqs, minimum of x amount going in per month, minimum of 2 direct debits etc.. I have an overdraft facility with my original current account so I would want one with the new bank account. As for hearing about the 5% at the end of the summary screen, after the application process therefore this seems like pretty sharp practice.

I would have preferred to have received a deferred decision rather than acceptance and then not knowing about the overdraft. But I know that this is standard practice i.e. most credit card don't let you know the credit limit until you get it through the door. But it is a bit of a warning here about using the account switching tool (for movement of direct debits too early in the day).

Some good news for me...

This morning I was able to speak to the two companies who were upholding the interest rate increase and fines (Natwest and MBNA), and eventually they agreed to reinstate the 0%. For the first, the representative asked if I had spoken to my bank, to which I said I had but they could not see any attempt to collect the money, so I asked if the unpaid direct debit had had a reason attached to it (i.e. account transferred, or lack of funds) - this seemed to reveal something to her as if there is normally a reason given, and after trying to put me through to their busy direct debit team, gave me her apologies and reinstated the 0% and refunded. With MBNA, the rep told me that the 1.9% rate best I was going to get and that all they could do was use the sort code and account number I had given them, but I suggested that they reused a blocked mandate (?) to which she said that they is up to my bank, but I said that only MBNA set up the direct debit, I give them my instruction and then politely (obviously) asked to escalate, she spoke to a manager and they agreed to put back the 0%.

The blocks are now removed, but I won't sit easy until I call them up on the day the next dd is sue out to check all is well.

Thanks to everyone

innovate

will.moindrot wrote: »

I have a problem with this. On paper I meet the pre-reqs, minimum of x amount going in per month, minimum of 2 direct debits etc.. I have an overdraft facility with my original current account so I would want one with the new bank account. As for hearing about the 5% at the end of the summary screen, after the application process therefore this seems like pretty sharp practice.

I have a problem with this too.

You knew of the pre-reqs, but you didn't know about the 5% interest? Pull the other one. Why is it "sharp practice" if they, once they accept your application, confirm what they advertise? Why are you complaining about 5% AER, anyway, if that is the highest interest rate a current account offers at this point in time? Do you realise the 5% is for credit balances, not for the use of overdrafts? Do you actually read the T&Cs that you have confirmed you had read when you applied for the account?

As to overdraft facilities: no bank or BS guarantees you an overdraft facility of any size, and certainly not of them same size you may already have elsewhere. They will all do their own risk assessment and then offer you an overdraft or not. An existing overdraft may actually work against you getting another one of same or similar size, or one at all. Nothing different there with Nationwide. They most certainly don't advertise that they will give you the same overdraft as you have on your old account so I don't know why you thought they would.

Thrugelmir

will.moindrot wrote: »

I have a problem with this. On paper I meet the pre-reqs, minimum of x amount going in per month, minimum of 2 direct debits etc.. I have an overdraft facility with my original current account so I would want one with the new bank account. As for hearing about the 5% at the end of the summary screen, after the application process therefore this seems like pretty sharp practice.

As well as an existing overdraft , you have 5 active credit cards. There's where your problem lies. Banks are having to adhere to a code of responsible lending. Here's part that may be relevant to you.

Lenders may also consider factors that may suggest a higher risk of the customer experiencing financial difficulty, such as:

Having four or more credit commitments.

Spending more than 25% of gross income on consumer credit.

Spending more than 50% of gross income on consumer credit and mortgages.

w81

innovate wrote: »

You knew of the pre-reqs, but you didnt know about the 5% interest? Pull the other one.

You misunderstood me. I knew about the benefits and how they work in terms of earning the interest. But they were not even going to offer me 5% on in credit amounts. And I only learnt that after the application process had completed.

It doesn't really matter, but I wasnt using my overdraft on my old bank account but it was a feature I was worried I would miss if I lost it. Shortly to pay off my fifth card, a lot of work to go but I hope to be more financially sound in future with goal to be able to start a family.

Thanks again