Switch Services Refunds and Overdrawn

DanielTS

Afternoon guys


Hoping for some assistance.


I am currently in the process of switching my bank account from Santander to Halifax.


I'm due a whopping refund of £650 that is due to be processed in 5- 7 working days from today, my account switch however is due to complete on the 4th of December. The old account with Santander is unfortunately overdrawn.


The situation is that I don't want this refund to go into the old account and pay off the overdraft, I'm arranging to repay that after Christmas. I have contacted the company issuing the refund and they're unable to help.


Does anyone have any previous experience with this?


Any help/advice would be greatly received.


Thanks

Dan

thebritishbloke

Tough luck really, it'll have to go to the account you paid it from and it will pay off the overdraft.

Think of it as a benefit, you've settled the debt.

DanielTS

Thanks for the reply, so there's no way around this then? If the account with Santander stays open after the switch, would I still have access to move the monies?


I only ask because the switching guide I've had with Halifax mentions that the previous account may not be able to close due to being overdrawn.

thebritishbloke

Part of the switch service is closing down your account fully. If you owe them money on an overdraft I really hope that you have an overdraft on your new account that can cover that, otherwise it'll default/fail the switch.

DanielTS

I don't have an overdraft on the new account that I'm switching to, out of choice.


The Direct Debits, standing orders etc. have all been moved over though. In what way would the switch fail?

Apologies I'm not clued up at all about any of this. Hence my presence here with a view to learning more...

agrinnall

Although I haven't used it myself I'm inclined to agree with thebritishbloke that the switch will fail. The point of the switch is that the balance on the closing account is transferred to the new account, if the balance is negative and there is no pre-arranged overdraft on the new account then the old bank will refuse to allow the switch to go ahead.

colsten

You need to have an arrangement with Santander for paying off your overdraft.

DanielTS

Santander have written agreeing the switch as long as the overdrawn amount is paid. So I understand your points regarding this, but my main issue was transferring the direct debits etc. to the new account, so if this is already done what will be the penalties of Santander not closing the old account? No payment forwarding and no guarantee regarding missed DD/charges etc.?


As the DD's have all been transferred over already and I've notified my employer within time for salary payment, is there anything I should worry about other than the previous account remaining open and having to arrange to pay Santander an amount each month to clear the overdraft?


Thanks for your help

badger09

I must be missing something.

If you've already transferred your DDs, notified your employer and have not arranged for an overdraft facility so the debit balance can be switched - what exactly are you switching?

meer53

The switch will still happen, you'll just have to arrange with Santander to repay the outstanding balance. The credit will go to your Santander account, if it's more than the debit balance, the rest will be transferred to your new account, if it's less than the outstanding balance, then it will be swallowed up and you'll still owe them whats left.

Can't you contact whoever is refunding you and ask them for a cheque ?

thebritishbloke

Did you actually use the switch service, or did you change all your DD's manually?...