MSE News: Current account switching 'working well', but improvement still needed

Former_MSE_Paloma

Seven day current account switching is working well for those who've used the service but there is a lack of confidence...

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'Current account switching 'working well', but improvement still needed




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Fruit_and_Nut_Case

Incentives for switching need to be increased. I reckon £250 would make it more inviting.

No_6

I said to the switch team member that £500 would be nice,
he said the entire world would then be coming to MS
nice team member, really chatty,
although fairly long telephone calls required, there were no problems, all went well + £100
Current and saver accounts running fine online.
6

grumbler

Five day switching
In December 2014, the Chancellor of the Exchequer called for a review of the switching period and asked the FCA to examine whether a five day switch scheme "would deliver significant benefit to consumers".
But today's report says that interest in a five day switch is hardly different from the interest seen in a seven day service.
It's research found that the speed of switching wasn't mentioned as a core reason for why people weren't switching and consumers were more interested in knowing exactly when the switch will take place rather than it being completed in a shorter space of time.

I nominate this outstanding research for a Nobel prize.
Taxpayers' money well spent...

Mobeer

For me, the risks of switching need to be reduced:
- keep the same account number and sort code
- switch in zero days
- if payments go wrong then no charges and no adverse credit record entries

meer53

Mobeer wrote: »

For me, the risks of switching need to be reduced:
- keep the same account number and sort code
- switch in zero days
- if payments go wrong then no charges and no adverse credit record entries

What risks ?

Why do you need to keep the same account number and sort code ?
If you're charged for payments going wrong because of a switch, you're refunded under the CASS guarantee. Ergo, credit file entries would also be removed.
What would the benefit be for switching in "zero days" not quite sure what you mean there really ?

colsten

Mobeer wrote: »

For me, the risks of switching need to be reduced:
- keep the same account number and sort code
- switch in zero days
- if payments go wrong then no charges and no adverse credit record entries

The current switch process already satisfies your last requirement.

To ask for a same-day switch is probably asking too much. Which other company switches you same day?

Same account number and sort code - this will require tremendous changes to a system that has been with us for decades and is incredibly costly to change. The benefits are questionable and I sincerely hope that no money will be spent on this as we, the customers, would be paying for it.

YorkshireBoy

meer53 wrote: »

Ergo, credit file entries would also be removed.

Assumption, guesswork, or fact?

Scenario...If my MBNA credit card DD failed due to a problem with the CASS involving First Direct and Halifax, then MBNA would remove the late payment marker at all 3 CRAs?

grumbler

meer53 wrote: »

Why do you need to keep the same account number and sort code ?

In fact this idea was being closely considered and discussed:

The UK's banks are known to not be keen on the alternative, which is known as "account portability".
This would make moving even easier for customers, as they could switch between providers as easily as moving between mobile-phone operators.
As with mobile phones, customers could keep an existing account number for life, as they do with their telephone number.
The idea was championed in June's report from the Commission on Banking standards, and as a result the Treasury will look at the idea more closely next year.
But banks say the system would be complicated, with new systems having to be built from scratch.

http://www.bbc.co.uk/news/business-23700012

meer53

YorkshireBoy wrote: »

Assumption, guesswork, or fact?

Scenario...If my MBNA credit card DD failed due to a problem with the CASS involving First Direct and Halifax, then MBNA would remove the late payment marker at all 3 CRAs?

If MBNA are provided with proof that the error was not yours, then yes.

grumbler

Does the switching procedure specify who exactly has to provide the proofs and make sure that the mess is cleaned? I guess it doesn't, so it's the customer then.