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Advice for a family member - switching problem
reclusive46
Posts: 2,698 Forumite
Hi, I'm advising a family member about an issue they are having with switching a bank account and I was wondering if anyone who could add anything or confirm what I think is right.
My family member is switching from Halifax to Yorkshire bank. They have two Halifax accounts and wanted to switch an account with a positive balance and no overdraft to Yorkshire bank. What he has discovered though is that Yorkshire bank is actually switching an account with an overdraft (a rather large one) to a YB account with no overdraft and they won't be able to afford to repay this.
In my opinion this is the Yorkshire bank's fault as my family member used his overdraft account statement for proof of address but provided the debit card for the account he wishes to switch (both of these were photocopied) and this was explained. Also surely the debit card should have been checked against the account and this mismatch should have prevented the switch. He only found out today they are switching the wrong one.
Am I correct in thinking as it is too late for Halifax to help that under th e switch guarantee that Yorkshire bank will either have to pay off the overdraft or give him a planned overdraft to cover the amount (0% as well as his Halifax overdraft is a 0% interest account) regardless of credit status or lending criteria and that they can't leave him completely responsible?
My family member is switching from Halifax to Yorkshire bank. They have two Halifax accounts and wanted to switch an account with a positive balance and no overdraft to Yorkshire bank. What he has discovered though is that Yorkshire bank is actually switching an account with an overdraft (a rather large one) to a YB account with no overdraft and they won't be able to afford to repay this.
In my opinion this is the Yorkshire bank's fault as my family member used his overdraft account statement for proof of address but provided the debit card for the account he wishes to switch (both of these were photocopied) and this was explained. Also surely the debit card should have been checked against the account and this mismatch should have prevented the switch. He only found out today they are switching the wrong one.
Am I correct in thinking as it is too late for Halifax to help that under th e switch guarantee that Yorkshire bank will either have to pay off the overdraft or give him a planned overdraft to cover the amount (0% as well as his Halifax overdraft is a 0% interest account) regardless of credit status or lending criteria and that they can't leave him completely responsible?
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Comments
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What will probably happen is that the account balance will not ''switch'' ie the direct debits etc may move across but the Halifax account may not close.
Give it a few days and switch back is my suggestion.0 -
IF YB have made an error with the switch then your family member should ask YB to provide an overdraft to cover the Halifax balance. Whether they will match the 0% will be debatable.
Where i work, the account details to be switched are confirmed back to the customer twice (on separate occasions) before the switch begins, as are the card details. If your family member has confirmed the wrong details then YB may not be quite so helpful.
If the switch has only just started it may reject due to the card details anyway.0 -
reclusive46 wrote: »Hi, I'm advising a family member about an issue they are having with switching a bank account and I was wondering if anyone who could add anything or confirm what I think is right.
My family member is switching from Halifax to Yorkshire bank. They have two Halifax accounts and wanted to switch an account with a positive balance and no overdraft to Yorkshire bank. What he has discovered though is that Yorkshire bank is actually switching an account with an overdraft (a rather large one) to a YB account with no overdraft and they won't be able to afford to repay this.
In my opinion this is the Yorkshire bank's fault as my family member used his overdraft account statement for proof of address but provided the debit card for the account he wishes to switch (both of these were photocopied) and this was explained. Also surely the debit card should have been checked against the account and this mismatch should have prevented the switch. He only found out today they are switching the wrong one.
Am I correct in thinking as it is too late for Halifax to help that under th e switch guarantee that Yorkshire bank will either have to pay off the overdraft or give him a planned overdraft to cover the amount (0% as well as his Halifax overdraft is a 0% interest account) regardless of credit status or lending criteria and that they can't leave him completely responsible?
May I suggest you ask the 'family member' to sign up to MSE with their own account and ask, if that is what they want.
(It's still FREE)
Your post creates lots of questions that I feel probably needs asking to ensure the 'family member' is making the most of their money, if not also to provide best advice on the issue they have.
I'm sure you will understand it is best to get such information direct from the horses mouth so to say, rather than second or third hand, and you may only be able to guess at some of the answers needed.
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May I suggest you ask the 'family member' to sign up to MSE with their own account and ask, if that is what they want.
(It's still FREE)
Your post creates lots of questions that I feel probably needs asking to ensure the 'family member' is making the most of their money, if not also to provide best advice on the issue they have.
I'm sure you will understand it is best to get such information direct from the horses mouth so to say, rather than second or third hand, and you may only be able to guess at some of the answers needed.
Why ? The questions are perfectly understandable. The issue is relating to the switch, not how to make the most of their money ?0 -
They've got the problem resolved. Although the switch process appeared to be going through even with the incorrect details, they got someone in branch to call the outbound switching team who managed to get it sorted.0
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reclusive46 wrote: »They've got the problem resolved. Although the switch process appeared to be going through even with the incorrect details, they got someone in branch to call the outbound switching team who managed to get it sorted.
So what had gone wrong, and whose fault was it?0 -
So what had gone wrong, and whose fault was it?
The bank assumed that the account that was to be switched was the one on the proof of address and not the account the debit card was for. They processed it with the incorrect details and it appeared to have been approved by both YBs and Halifax's systems but Halifax put a block in place as though the account was being stolen to stop it.0 -
So it sounds it was a YB fault - rather than taking the sort code / acct number to be switched from the switch authorisation form, YB took it from an ID document? If so, it sounds like a serious training issue YB need to address.....
Don't understand this. Whilst it is great for your relative that the switch didn't proceed, why would Halifax have thought the account is being stolen? I'd be mightily displeased if I had asked for a switch and the old bank put a stop to it because they suspect my account get stolen.reclusive46 wrote: »Halifax put a block in place as though the account was being stolen to stop it.
There must be more to it.0 -
So it sounds it was a YB fault - rather than taking the sort code / acct number to be switched from the switch authorisation form, YB took it from an ID document? If so, it sounds like a serious training issue YB need to address.....
Don't understand this. Whilst it is great for your relative that the switch didn't proceed, why would Halifax have thought the account is being stolen? I'd be mightily displeased if I had asked for a switch and the old bank put a stop to it because they suspect my account get stolen.
There must be more to it.
Halifax blocked the account to prevent the wrong switch going through. The same block as they would have applied if the account was "being stolen"0
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