We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
MSE News: Faster current account switching is coming – but cards not included
Options
Comments
-
Archi_Bald wrote: »LOL, what a way to say you don't actually have the answers, either!
Debit card payments - bank which has been closed passes the debit payment details to the new bank for them to debit as customer has authorised this payment. Customer is advised then to contact the company to update details/or bank does this for them. After all any outstanding cheques on old account will be paid out of the new account under the new 7 days switcher service which also comes with a guarantee. Or when the switching process is instigated the debit card with the old bank is linked to the new debit card, surely there is some techno geek out there who can devise a way of this.0 -
brewerdave wrote: »....my point is that George Osbourne and the banks may have "sorted" the process out but I can assure you that various merchants are nowhere near ready -not stressful??-you should have been a party to my telephone conversation with one supplier yesterday - they are insisting that I pay by debit/credit card for this month or face withdrawal of their "service" EVEN THOUGH they are fully aware that the direct debit details have changed -and this is some 15 working days after they received the communication from the new bank.:(
Whilst you may be having problems, the bank HAS advised the company, I don't take bully boy tactics from any company, you should be complaining to this company for their gross incompetancy and claiming compensation for the wasted phone calls and time spent. Afterall they are fully aware that the direct debit details had been changed.0 -
Debit card payments - bank which has been closed passes the debit payment details to the new bank for them to debit as customer has authorised this payment. Customer is advised then to contact the company to update details/or bank does this for them. After all any outstanding cheques on old account will be paid out of the new account under the new 7 days switcher service which also comes with a guarantee. Or when the switching process is instigated the debit card with the old bank is linked to the new debit card, surely there is some techno geek out there who can devise a way of this.
OK, and how is account holder getting any cash once his/her old account has been closed, and all his/her cash has been moved to the new account? How are they going to pay for their supermarket shop that week after the switch?
Not having a go at you, pindalek. I just would like to have answers to such basic questions.0 -
Archi_Bald wrote: »OK, and how is account holder getting any cash once his/her old account has been closed, and all his/her cash has been moved to the new account? How are they going to pay for their supermarket shop that week after the switch?
Not having a go at you, pindalek. I just would like to have answers to such basic questions.
They will have their new card and PIN. If you were that bothered and concerned then you would personally withdraw cash with your current card before the account is closed as a precautionary measure.
Some of us would be able to go to the bank with ID and withdraw funds from the new account. Some of us would have alternative methods of payments e.g. 2nd debit card, credit card.
Although your scenario may happen it's hardly a life threatening event is it?0 -
They will have their new card and PIN.
But that is exactly the point of this thread - - there is no guarantee that the new debit card will be with you within 7 days (unless you switch to Metrobank).
If you were that bothered and concerned then you would personally withdraw cash with your current card before the account is closed as a precautionary measure.
Your suggestion that people should withdraw some additional cash beforehand, or use a 2nd debit card or a credit card, would help reduce the risk of running out of accessible money during a switch - but it won't eliminate it.
Hopefully someone from the Payments Council and/or the banks will read this and may be we will see some workable guidance from banks. Someone might even tell Gideon.
I never said anywhere that we are dealing with a life threatening event. I just object to people blurting out that it will take only 7 days to switch current account when in most cases this would be just a blatant lie.0 -
Archi_Bald wrote: »But that is exactly the point of this thread - - there is no guarantee that the new debit card will be with you within 7 days (unless you switch to Metrobank).
No guarantee, but most banks will send you your card and PIN before the seventh working day after opening the account (i.e. 9 days). So it's unlikely to often cause a problem.0 -
Perhaps we should just wait and see what happens shall we?
And having a 2nd account would help, even if you ran out of money or used the funds in the second account you can still do fast payments from either the old account or new account, or even do it the old fashioned way and walk into a branch with ID.
I mean really if anyone had these niggles it's not worth bothering is it? Just open an account yourself and spend your own life wasting time doing all the switching and everything else involved yourself, at least that way you will have your own peace of mind.0 -
Yes. Most merchants, when they get an instruction to change a DD, will put the new details on their system (as and when) and send the instruction to the new bank. And then collect no payments for at least a fortnight, maybe a month.brewerdave wrote: »they are insisting that I pay by debit/credit card for this month or face withdrawal of their "service" EVEN THOUGH they are fully aware that the direct debit details have changed -and this is some 15 working days after they received the communication from the new bank.
What they do not have is any mechanism for continuing to use the old bank until the new one is ready. So payments will continue to get missed, and redirection won't come to the rescue, because you can't redirect a claim that isn't made.
This includes some big operators, like TVLA.
The majority of missed payments seem to happen not because the old account is unfunded but because they aren't taken. Some firms will stop taking payments if you just ask for a form to change your DD, even if you never return the form.
What they're scared of is customers complaining that they got hit with a returned item fee or an overdraft fee - "you tried to debit the old bank and I told you I was changing my bank".
They could change their systems now, but I don't suppose they will. There'll still be customers who take their money out of the old bank before redirection is in place."It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis0 -
Some issues arising with debit cards and bank switching:
1) pending payments, with or without pre-authorisation. Some payees take their time collecting. Some payments are deliberately future-dated. Wonga will love it if you give your debit card details, take a loan and then close your account.
Will be transferred to the new account by the losing bank.Not a problem if you keep the old account and some money in it. With the new system, it's only a matter of time before we get the thread where somebody's "closed" account has been re-opened for a stray debit, and is racking up a ton of overdraft charges, and there's no way he can pay any money in, because any money he tries to send gets redirected.
Won't happen as any debits are passed to the winning bank.2) CPAs, as often used for subscription and insurance renewals or instalment plans. The hard part is to know what CPAs you've actually got. And then you have to figure out how to contact the payees. And contrary to Gideon you're still going to have to do all this yourself.
See above answers. These will be transferred to new account. I would then take it that you will receive a letter advising you to updated said co's with your new details.3) A lot of websites will save debit card details for future reference. These will all want updating, and you'll have to do it yourself.
As you would if you lost your card or swopped a account anyway.4) Some merchants like to pay refunds back to the card they took the money from. Not a problem if you keep the old account, but messy if you close it.
Like debits these will be transferred to the new account.5) Bookies especially like to refund all returned stakes back to the card they came from, for anti-money-laundering reasons. Another reason to keep the old account.
Again these will be transferred to the new account....Never ASSUME anything its makes a>>> A55 of U & ME <<<0 -
dalesrider wrote: »Won't happen as any debits are passed to the winning bank.
The winning bank? Thanks, dalesrider, for giving us an insight into how bank personnel see this switching malarky, and for making me LOL.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244K Work, Benefits & Business
- 599K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards