Switch Services Refunds and Overdrawn

meer53

OP said the switch is due to complete on Dec 4th ?

thebritishbloke

meer53 wrote: »

OP said the switch is due to complete on Dec 4th ?

But OP is also saying that the DD's have already switched. That's not how it works. The DD's wouldn't show up in the new account until the switch date.

Armorica

Everything about this thread is very confusing!

Most banks - certainly if a switch incentive is involved - require a full switch. The guarantee applies, payments are redirected and DD/DC are asked to update the account used, and your old account is closed.

Some banks permit a partial switch - your old account remains open and payments aren't automatically redirected. The guarantee won't apply. DD/DC will be asked to up date their details - but if they don't, payments will go to your old account.

If the redirection is in place, the refund will go to your new account. If not it will go to your old account. You need to establishment whether yours is a full or partial switch and whether the redirection will be applied.

It's not clear whether the refund is coming from one of the banks, or somewhere else. Regardless, the person issuing the refund can control where it goes. How they are making the refund is important. For example, is it via cheque, automated transfers (Bacs, FPS) or debit card refund?

DanielTS

Thanks for replying guys.


I used the switch service, taken on initially as a full switch with guarantees et al. I have logged onto online banking and ALL direct debits and standing orders have switched already and one has been debited today, maybe it's the guarantee and payment redirection that won't apply? So ultimately only a partial switch?


The refund will nearly clear the whole overdraft, it is being made by Apple, by debit card refund. I have asked them several times to change payment method but it is against money laundering policies etc., or so the manager says.


I can live with it clearing the overdraft if there's no alternative.

meer53

thebritishbloke wrote: »

But OP is also saying that the DD's have already switched. That's not how it works. The DD's wouldn't show up in the new account until the switch date.

The DD's transfer during the 7 working days that the switch takes to work. They can show up anytime after the switch is started, they definitely show up way before the switch date.

Armorica

Ah; the debit card clarifies it - and yes, I believe the ?visa scheme rules essentially limit where refunds can be applied for fraud/money laundering etc. reasons. So it'll go back to your card, which'll be linked to your old account. In the depths somewhere, there is something that provides details of your new card if your old number doesn't work, but I'm not sure it would apply here. You may want to speak to your old bank to clarify what they think would happen to the funds...if your account/card is closed it's possible the refund will remain with Apple.

Did you ask the Apple manager just about the payment method, or mention why i.e. that old account is (almost) closed?

DanielTS

Morning


Yeah I did explain the situation initially to a telephone warrior at Apple and then to their manager, who was more helpful but ultimately the decision was still the same. Luckily the refund has already gone in and the Santander account is still open, so I have access to the money but am going to leave it there to pretty much clear the OD.


The problem now is that the old account is still open due to there being overdraft so not sure whether payment redirecting will apply? Everything else has worked out though.

meer53

If you have a debit balance on your old account, it will remain there until you repay it. Your old bank could use any credits received to the old account to repay this rather than redirecting them to your new account.

Armorica

DanielTS wrote: »

Morning


Yeah I did explain the situation initially to a telephone warrior at Apple and then to their manager, who was more helpful but ultimately the decision was still the same. Luckily the refund has already gone in and the Santander account is still open, so I have access to the money but am going to leave it there to pretty much clear the OD.


The problem now is that the old account is still open due to there being overdraft so not sure whether payment redirecting will apply? Everything else has worked out though.

Not without additional action. Once the overdraft is cleared, you could ask for a full switch. Wouldn't be any DD's left to switch over lol, but the redirection would get turned on and your old account closed.

meer53

They've already done a full switch, it completed yesterday as per the OP. You don't have to clear an overdraft before doing a full switch, you just need to make arrangements to repay it once the account is closed.