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

grumbler

Mobeer wrote: »

It's been done for me for Electricity, Gas, Home Phone, Internet. They could all switch with seamless service - I think banks should do the same.

I have never switched gas and electricity, but when I switched mobile and internet providers this had never happened on the same day when I applied to a new provider and asked to switch. In fact, it never happened even on the next day.

Like with mobile and internet, switching bank account happens on the certain day; it's the preparation for the actual switch that takes a little longer.

Archi_Bald

Mobeer wrote: »

When I switch home phone supplier I keep the same number.

Not if you move into a completely different area at the same time

Mobeer wrote: »

Same for mobile phones.

The mobile phone systems and infrastructure is about 50 years more recent and modern than the current account sort code/account number system.

Mobeer wrote: »

New utilities and I keep the same meter number.

A gas or electricity meter is assigned to a property. A bank account is assigned to a person. When you move house, you get a different meter number but your current account sort code/account number does not need to change just because you move house.

Mobeer wrote: »

New internet host and I keep the same email address.

This is far from universally true - see, for example, this article. Interesting that some providers let you keep your email for a monthly charge - perhaps this would be a concept banks can use for funding the cost of account number portability. I reckon that would soon make the requirement disappear.

Mobeer wrote: »

So why not new banking service provider and I keep the same contact details?

I still fail to see the compelling advantage. Why would you want to keep it?

Mobeer wrote: »

It's been done for me for Electricity, Gas, Home Phone, Internet. They could all switch with seamless service - I think banks should do the same.

I have switched all of these services myself, some several times. I can't confirm your experience. Are you sure your memory isn't playing tricks? All of these have cooling off periods (usually a fortnight) and providers won't be switching you during the cooling off period.

Switching bank account is pretty much also seamless as the actual switch also happens on a single day. You can even pick the date for the switch if you so wish.
May be you should try a switch to see how it works in practice? I have done more than a dozen bank account switches now and don't see a problem with the switching process.

jimjames

Mobeer wrote: »

It's been done for me for Electricity, Gas, Home Phone, Internet. They could all switch with seamless service - I think banks should do the same.

If you are suggesting that electricity & gas switch on the same day then that's complete garbage.

The switch process takes up to 4 weeks so 3 weeks longer than a current account switch. And every supplier will give you a different account number. Even mobile phone providers don't switch same day.


Having switched using the new CASS service and switched before it came into effect it is certainly more efficient than the old way.

meer53

YorkshireBoy wrote: »

I'm sorry to labour the point meer, really I am, but your first point above relates to errors by your bank (I would imagine?)...and you have much more scope there to do that.


What I've done in my scenario above is to introduce a 3rd party (it could be Yorkshire Water, BT Mobile, or any other DD originator), who have had no involvement with the issues surrounding the late payment/failed DD.


What I'm looking for is some reassurance that MBNA, or whoever, would act on the request (it can't be an instruction can it?) of a couple of banks and wipe factual data from CRA records.


However, what I'm suspecting is that this, as grumbler has said above, will be down to the customer...and very much dependant on goodwill from the DD originator. And therefore won't happen, because the 'principles of reciprocity' wouldn't allow it.

MBNA will remove information from credit files if they are given proof that the late payment is down to an issue with switching and not the customer. If your DD isnt paid, and it's down to the switch, your new bank should contact MBNA. All you need to do is contact your new bank.

It happens, banks do speak to each other, they all have dedicated switching teams to deal with issues like this.

grumbler

meer53 wrote: »

...It happens, banks do speak to each other, they all have dedicated switching teams to deal with issues like this.

Unfortunately, banks are not the only companies reporting to CRAs.

I wish a lot of luck to any bank 'speaking', say, to Vodafone.

meer53

grumbler wrote: »

Unfortunately, banks are not the only companies reporting to CRAs...

Correct, but only banks use CASS, which is what we're talking about here, and in this instance, the cause of any possible reports to CRA's.

Edit - i've had 3 way conversations with customers and companies regarding credit file info. It's not difficult.

grumbler

I don't understand your 'but'.
If the late/missed payment get reported by Vodafone, then it's Vodafone only who can make correction, not some bank that used CASS and made an error.

Hazzanet

grumbler wrote: »

If the late/missed payment get reported by Vodafone, then it's Vodafone only who can make correction, not some bank that used CASS and made an error.

I've dug this from Section 17.3 of the Rules of the DD scheme. Perhaps this will help clear things up?

grumbler

I am surprised to see that OFT involvement is needed in this. Yet another useless (IMO) body that hardly can make things simpler.
The point remains - in many cases correcting errors can take time and is unlikely (impossible) without the victim (customer) doing a lot of legwork.

BTW, OFT was closed a year ago - and closed for a reason.

meer53

grumbler wrote: »

I am surprised to see that OFT involvement is needed in this. Yet another useless (IMO) body that hardly can make things simpler.
The point remains - in many cases correcting errors can take time and is unlikely (impossible) without the victim (customer) doing a lot of legwork.

BTW, OFT was closed a year ago - and closed for a reason.

Customer switches bank. DD isn't paid. Customer calls new bank. New bank sorts out with beneficiary. There really is no need for any complicated "legwork" the new bank has to sort out the error. Correcting errors is possible.

The main issues with DD's and switching is not the switch itself, it's when beneficiaries decide to ignore the new bank information and try to claim from the old bank account.