Seemingly deliberate account switch botch

jlfrs

Thought I'd put up a post on a mishap when switching bank accounts to see if anyone else has had the same experience.

I have switches bank accounts many times, usually because of the incentives now on offer.

I moved one of my accounts from Santander to First Direct and with it, 2 direct debit instructions. Both failed to be switched.

When I quizzed F.D about this (who were very apologetic and compensated me), they said it was because Santander had failed to send over the relevant information.

Although I had switched, I still had 2 other accounts with Santander so I called to enquire about how this could have happened. Their response was "speak to First Direct, under the new switching rules it is their responsibility". I said that F.D were saying it's Santander's fault. "Doesn't matter whose fault it is", came the reply, "it's still their responsibility".

First Direct said that this was not a one-off, it was/is almost a deliberate ploy to queer the pitch for the new bank and to ensure they are in breach.

Sneaky or what?

colsten

Santander are 100% correct, any and all complaints need to go via the new account provider.

If any new provider has reason to complain about the old provider, it is between those two, and there is no need for individual account holders to get roped into any dispute between the providers.

But as you posted your woes: what happened to the DDs that weren't switched?

jlfrs

They got switched but F.D had to make good on the missed payment fees, plus the extra interest incurred.

It was a bit of a hassle with Santander being as uncoperative as possible, which is why I was compensated. The banks say "nothing can go wrong" but as I've illustrated, yes it can.

Just been into unarmed combat with Yorkshire Bank but on the Switching bonus. Their small print states that you have to make the £800 deposit into the new account after the Switch has taken place and not before.

I didn't RTFM, so I lobbed £800 into my shiny new account as soon as it was opened. 2 months later with no switching bonus I was told it was my fault. I said I'd never been told, they had to launch an internal investigation and listen to all the tapes because with Y.B and Clydesdale, it's an in-branch opening process. I was in the right so I got my bonus plus another £50 for the hassle.

Anyway, for anyone reading this thinking of doing a Yorkshire Bank or Clydesdale Switch, ensure the deposit is post switch and not before. Just switched to Co-Op so will see how that goes.
With any luck they'll screw up too so I'll be in line for another payout!

eskbanker

jlfrs wrote: »

The banks say "nothing can go wrong" but as I've illustrated, yes it can.

Where do they say that? It would be a pretty brave/foolhardy statement to make and ultimately a meaningless one - as ever it's knowing who to turn to (receiving bank as above) when things do go wrong and also them having the processes in place to deal with it while minimising consequential issues for the customer....

grumbler

jlfrs wrote: »

The banks say "nothing can go wrong" but as I've illustrated, yes it can.

In fact they say:

If anything goes wrong with the switch, as soon as we are told, we will refund any interest (paid or lost) and charges made on either your old or new current accounts as a result of this failure.

http://www.paymentscouncil.org.uk/files/payments_council/accountswitching/images/switch_guarantee.pdf

jlfrs wrote: »

I didn't RTFM, so I lobbed £800 into my shiny new account as soon as it was opened. 2 months later with no switching bonus I was told it was my fault. I said I'd never been told, they had to launch an internal investigation and listen to all the tapes because with Y.B and Clydesdale, it's an in-branch opening process. I was in the right so I got my bonus plus another £50 for the hassle.

I don't see how it was their fault if you didn't RTFM.
And what tapes for an "in-branch opening process"?

jlfrs

I think you are living upto your name "Grumbler".

Perhaps you are someone who thinks its fine for our banking institutions to headline their products in big type whilst hiding their caveats in small print? Your post would seem to condone that bad practice, more's the pity.

You ask how an in-branch meetings could be taped. Simple really, I went in, was sat down in a room and the "product specialist" phoned me. We spent the next 45 minutes on the phone whilst she talked me through the process.

I don't really understand your challenges Grumbler - my post was to inform on the "gotchas" with Account switching based on real life experience. If you're not interested, fine, but the information is still valid.

Do you work for one of the Banks? Is that why you are being unnecessarily petty? What advice or real-life experience can you bring to the party to help joe public navigate the banking world?

Or is it that you prefer to challenge fellow Forum members on the legitimacy of their information? :mad:

grumbler

jlfrs wrote: »

I don't really understand your challenges Grumbler - my post was to inform on the "gotchas" with Account switching based on real life experience. If you're not interested, fine, but the information is still valid.

What 'challenges'? I corrected a bit of information that was apparently 'valid'. You are welcome to prove me wrong.

Yes, I asked a question about a confusing bit. Even now it sounds odd to me to go to a branch only to spend 45 minutes on the phone speaking to some "product specialist". I believe that it really was the case, but I think this would confuse most people, not just me. What's the point in wasting time on going to a branch then if they could call you to your home at the time convenient to you?

That said, nothing with Clydesdale Bank or Yorkshire one can surprise me after I opened accounts with both.

Do you work for one of the Banks?

You are not the first one asking this. No, I don't and never did. I just try to remain unbiased - unlike some people here.

Or is it that you prefer to challenge fellow Forum members on the legitimacy of their information? :mad:

I don't prefer. I just do this when the information seems to be doubtful.

jlfrs

eskbanker wrote: »

Where do they say that? It would be a pretty brave/foolhardy statement to make and ultimately a meaningless one - as ever it's knowing who to turn to (receiving bank as above) when things do go wrong and also them having the processes in place to deal with it while minimising consequential issues for the customer....

I am exaggerating to make the point eskbanker. No bank would put anything in writing which claimed nothing could go wrong. My comment is based on my personal experience of speaking with 5 different banks for the switches I've made (and counting).
In all cases, the sales and switching teams were keen to assure me that it was a quick, simple, straightforward process. In other words, the dangers of switching were downplayed.


I take it you've nothing to say about the comments I received from First Direct that they had seen cases where switches were sabotaged in order to make the new bank culpable, even though it wasn't their fault? That was the main point of my post.

colsten

jlfrs wrote: »

I am exaggerating to make the point

jlfrs wrote: »

.....First Direct that they had seen cases where switches were sabotaged......

Sounds like another exaggeration. Close to 2 million current accounts have been switched since the 7-day switching became available in September 2013, most of them without any issues. If there was any sabotage involved, he last thing the affected bank(s) would do is tell one of their customers.

jlfrs wrote: »

In other words, the dangers of switching were downplayed.

I reckon that nobody mentioned any dangers as current account switching is fundamentally not a dangerous undertaking.

FOREVER21

grumbler wrote: »

What 'challenges'? I corrected a bit of information that was apparently 'valid'. You are welcome to prove me wrong.

Yes, I asked a question about a confusing bit. Even now it sounds odd to me to go to a branch only to spend 45 minutes on the phone speaking to some "product specialist". I believe that it really was the case, but I think this would confuse most people, not just me. What's the point in wasting time on going to a branch then if they could call you to your home at the time convenient to you?

That said, nothing with Clydesdale Bank or Yorkshire one can surprise me after I opened accounts with both.
You are not the first one asking this. No, I don't and never did. I just try to remain unbiased - unlike some people here.
I don't prefer. I just do this when the information seems to be doubtful.

A bit of te subject but I could not agree more about your point regarding Yorkshire bank. I opened my first account with them recently and encountered many problems which took ages to rectify.

jlfrs

colsten wrote: »

Sounds like another exaggeration. Close to 2 million current accounts have been switched since the 7-day switching became available in September 2013, most of them without any issues. If there was any sabotage involved, he last thing the affected bank(s) would do is tell one of their customers.

I reckon that nobody mentioned any dangers as current account switching is fundamentally not a dangerous undertaking.

Colsten - has anyone ever accused you of being a pedant before?