Paying off your overdraft during bank switch

JezzaPug

Hi,

First post on here. Has anyone had this scenario before?

I switched banks from one to another using the switch service. On the day of my switch, I was overdrawn (planned overdraft) by around £700. I mirrored my planned overdraft to my new account so that it would just effectively transfer over.

However, it didn't. None of the debt moved over, my old account closed and i've heard nothing since. I since then tried to make contact with my old bank and explain this, asking how to pay back the money.

Their response was vague, almost as if this was the first time this had happened (surely not!!). They said to make a payment of the outstanding debt to my old account and see what happened. But it re-directed back to my new account.

So now I'm left with no correspondence or contact from my old bank, a debt of £700 outstanding, and no idea if/when/how they're going to ask for it back.

Don't get me wrong, I won't complain if they don't ask for it, but I'm worried about effect on my credit history.

Is this a usual occurrence?

Thanks

grumbler

It's not usual.
Don't let them 'vaguely' fob you off and complain if necessary.

colsten

Overdrafts (limits and balances) will not be transferred by the switching service (although you could think they will be when you read see Q6 in http://www.paymentscouncil.org.uk/switch_service/faqs/).

You should definitely complain if they are vague as otherwise the next thing you might see is a default marker on your credit files, and a debt collector chasing you. Presumably there will also be charges accruing whilst the overdraft is outstanding but you shouldn't need to pay these as you have attempted to settle your overdraft.

Put your complaint in writing so you have proof.

CLAPTON

JezzaPug wrote: »

Hi,

First post on here. Has anyone had this scenario before?

I switched banks from one to another using the switch service. On the day of my switch, I was overdrawn (planned overdraft) by around £700. I mirrored my planned overdraft to my new account so that it would just effectively transfer over.

However, it didn't. None of the debt moved over, my old account closed and i've heard nothing since. I since then tried to make contact with my old bank and explain this, asking how to pay back the money.

Their response was vague, almost as if this was the first time this had happened (surely not!!). They said to make a payment of the outstanding debt to my old account and see what happened. But it re-directed back to my new account.

So now I'm left with no correspondence or contact from my old bank, a debt of £700 outstanding, and no idea if/when/how they're going to ask for it back.

Don't get me wrong, I won't complain if they don't ask for it, but I'm worried about effect on my credit history.

Is this a usual occurrence?

Thanks

If your specific deal said the OD would be transferred then you could complain to your new bank

otherwise sort it out with the old bank before your credit rating is damaged