MSE News: Faster current account switching is coming – but cards not included

Archi_Bald

pqrdef wrote: »

This includes some big operators, like TVLA.

Did you mean DVLA?

Archi_Bald

It seems to be clear that the 'bankers' on this forum see no problem whatsoever with the new switcher service, whilst the non-bankers amongst us think the bankers, and Gideon, are overly optimistic.

Time will tell.

pqrdef

Archi_Bald wrote: »

Did you mean DVLA?

No, TVLA. You can pay for your TV licence by monthly DD (if you've got one), and if you switch banks they tend to just not collect. Then you have to go online and catch up by debit card.

brewerdave

pqrdef wrote: »

No, TVLA. You can pay for your TV licence by monthly DD (if you've got one), and if you switch banks they tend to just not collect. Then you have to go online and catch up by debit card.

..Interestingly, Capita (ie TVL ) were the first merchant to confirm with my new bank that they had set up the new account details -my DD to them is due 1st Sept. -it will be interesting to see if they use the new details then.
Genuine enquiry - who actually tells the old bank to cancel their DD -is it the merchant or the new bank once they have confirmation from the merchant? I still have two active DDs on the old bank for two merchants who have not confirmed changeover with Santander,my new bank.

dalesrider

Archi_Bald wrote: »

It seems to be clear that the 'bankers' on this forum see no problem whatsoever with the new switcher service,
Time will tell.

The finer points are still being ironed out.

I would not say no problems.... Its a new service after all, that has been set in place by a 3rd party that does not have internal knowledge of ALL banks internal systems. That are all different.
So banks are going to have to find a workaround to make this work as the payment council want.

To start with this is going to be a dirty and people intensive workrounds.

dalesrider

brewerdave wrote: »

Genuine enquiry - who actually tells the old bank to cancel their DD -is it the merchant or the new bank once they have confirmation from the merchant? I still have two active DDs on the old bank for two merchants who have not confirmed changeover with Santander,my new bank.

When you put a request in your old bank will pass ALL DD details to the new bank.
The new bank will then inform the companies of the new collection details.
Your old bank will then close down the DD's. not my area, so I do not know if this is done straight away or left for a couple of months.
But given under the new switch service that starts 16 Sept. If you use it. Your account is closed down. So that will close any DD's
But that does not stop a company from trying to claim on that DD.
So any coming in under the new switchover service will then be transferred over to the new account.

pqrdef

brewerdave wrote: »

..Interestingly, Capita (ie TVL ) were the first merchant to confirm with my new bank that they had set up the new account details -my DD to them is due 1st Sept. -it will be interesting to see if they use the new details then.

They should do. My point was, if it's too late in the month to get the new DD in place in time, they won't try to collect on the old one, so a redirection service won't help.

Of course credit card firms are notorious for saying that the new DD is all set up and ready, and then not using it. I've just moved a few credit card DDs and in each case I've been warned not to rely on it for my next payment, even where there's plenty of time.

zppp

pqrdef wrote: »

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.

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.

I think the point here is that whether the originator has had time to update their records or not, it won't matter. The payment will debit from one account or the other depending on the status of the old account. Originators have had a number of communications about the new service.

pqrdef wrote: »

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.

The way this is being pitched is that customers can transact on their account until the start of Day 7, however it is suggested in the literature being put out by banks that a cash balance is left in the account to cover payments on the off chance of the previously mentioned scenario.

zppp

dalesrider wrote: »

The finer points are still being ironed out.

I would not say no problems.... Its a new service after all, that has been set in place by a 3rd party that does not have internal knowledge of ALL banks internal systems. That are all different.
So banks are going to have to find a workaround to make this work as the payment council want.

To start with this is going to be a dirty and people intensive workrounds.

I can assure you that a large amount of technical assurance has been going on over the last 6-7 months for each bank. I think the total co-ordinated investment in this is about £750m. There has been quite alot of co-operation between the banks too.

Archi_Bald

zppp wrote: »

.... however it is suggested in the literature being put out by banks that a cash balance is left in the account to cover payments on the off chance of the previously mentioned scenario.

LOL, so it's just like it's been for the last few years. Keep enough money in the old and new account just in case the move of a DD doesn't go as expected.

zppp wrote: »

I think the total co-ordinated investment in this is about £750m. There has been quite alot of co-operation between the banks too.

sevenhundred and fifty million, to essentially do nothing more than can be done already.

All that money could have been spent a lot more usefully in things that are sorely missing, such as displaying the interest rate prominently and without fail on all accounts, including those with a 0% interest.