Santander interest on 123 Account denied!!

okydoky

We had a surplus 123 account and decided to cancel this due mainly to increased monthly fee from next month.
Phoned Santander late November and was told to leave until next interest payment then phone them to cancel. Billing period is to 5th December but no interest appeared, I phoned and was told it was because there was only one active DDM at the end of the billing period. I looked online and sure enough only one was listed. The other one was with our energy company who were paid by ddm on 1st of December, I then phoned to advise them to switch over to our other Santander account. Now somehow when the Energy company advised Santander of the switch over, the original DDM has been cancelled and it is for this reason Santander are refusing to pay £40+ interest, plus cashback. To rub salt in, they deducted their £2 monthly fee on 7th December.
Anyone else been caught on out like this? I have spoken with the energy company who says they do not cancel the original direct debits in these circumstances.
Think I'm getting the runaround!?!

Stevie_Palimo

Lesson here always read the small print as to what you are signing up for, An old saying to nothing in life is free.

If it is 2dd's within a set period then not the banks issue at all they are going by what is required, The energy Company can change a dd if needs be so speak to them and tell them your preferred date for the next time any interest is due.

knack92

This is a timely thread. My mum is just about to upgrade her RBS account to Reward account and will downgrade 123 account after this month's fee is taken and cashback paid. Will need to make sure the direct debits aren't switched too early. Might set up a PayPal and Tesco dd to be sure.

colsten

The way to bypass/avoid these sorts of issues is to have some 'special' DDs, e.g. to Paypal or a charity or a savings account.

I would, though, in any case raise a formal complaint with Santander. Their T&Cs are less than clear on when you need to have those 2 DDs, and you only transferred one DD from one Santander to another Santander. Worst case they'll turn the complaint down, best case they'll pay you the interest and some extra for the annoyance.