problems with nationwide flexdirect switch

jam_09

Hello everyone, I had an old account with NatWest which had a minimal amount of money in less than £30.00 in and I was looking at the help to buy isa's that nationwide offer then at the end of October the refer a friend offer started. My sisters boyfriend offered to refer me and i switched after i set up some minimal direct debits to get the offer and to help them out as they were struggling.

I rang nationwide to see why i hadn't been paid on Wednesday and got a return phone call yesterday (Friday) to say that i didn't have two direct debits active on the account. I was very surprised to hear this and asked if there was two on my account and the lady on the phone said this looks very odd and refereed me to her manager. he stated that the first payment of one of my direct debits had been taken from my new account not my old one.I asked if there was anything he could do to compensate the loss as the direct debit was authorised to my old account not my new one. he spoke to the legal team and said there was nothing he could do.

I rang again later on in the evening and spoke to another manager as i had looked through my emails and found the email confirming that the direct debit was set up on the 24th of November a day before i set up my nationwide account, and she said that the direct debit was not transferred in the switch (although i am slightly confused as i havent given the company my new account number or authorised then to take the money from the new account only the account that was switched).

The terms for the incentive are that i have 2 direct debits on the switching account. I believe that i followed the deal but nationwide don't agree although all of their logos say "on your side" and in the about them section "We’re committed to being an ethical business
Every decision we make as a business is underpinned by our core values of decency, fairness and dependability. Doing the right thing for our members is at the heart of what we do."

Is there anything i can do?

grumbler

http://www.nationwide.co.uk/support/contact-us/make-a-complaint

Complain in writing. Stick to the facts. Quote the T&C and emphasise that nowhere do they say anything besides "A minimum of two Direct Debits must be transferred as part of the switch". Your two DD were transferred. Period.

Many years ago in similar circumstances I complained to A&L and was awarded the bonus and a compensation on the top.

jam_09

Thanks i will try doing that, i was also thinking about going to the financial ombudsman for support. I just don't get why any bank/building society can think that treating a customer like this is fair. also can someone clear up the official stance on when they believe that a direct debit is active? i thought it was when you authorised it but nationwide says its when the first payment is taken.

masonic

The Financial Ombudsman Service can certainly help you put your complaint across to NW if you find it difficult, but you'll have to go through NW's complaint procedure before they can take up the case.

Direct debits become inactive if there are no collections for a period of at least 13 months. There is no formal definition of an "active" direct debit, but it is reasonable to take "active" to mean that the direct debit is not inactive under the dormancy period rule.
http://www.directdebit.co.uk/DirectDebitExplained/FAQs/Pages/InactiveDirectDebits.aspx

grumbler

Active = not dormant. A new DD is certainly 'active'.

http://www.directdebit.co.uk/DirectDebitExplained/FAQs/Pages/InactiveDirectDebits.aspx

That said, I don't see 'active' stipulation in the T&C.

jam_09

It feels like nationwide are making up new rules each time i call up, and nw seem to find this acceptable but do you think that nationwide will stand down or the fo will be able to do anything? and what would be best to put down in the complaints letter? Thanks

YorkshireBoy

I'm not clear on the timescales...

What date were the DDs showing on your old account? As witnessed/seen by you...not what the originator may have told you.

What was the switching date?

Yorkshire_Pud

OP Nationwide might be taking the view that you had just set up 2 DD to qualify for the incentive as they were so 'fresh' that they hadn't even paid out once, given that you were switching your 'main' account to Nationwide.

You can have up to four Flex current accounts so in your place I would go through the referral process again!

Set up two DD and make sure they pay out at least once before entering the switch process.

As you apparently didnt qualify this time you should still be eligible for the one time £100 as a referee/friend.

If I was Nationwide I would turn you down as you cut it too fine if it all hinges on the first DD not being paid out on your 'main' account before switching.

Many of us are doing this thing but you have to play the game and not be in too much of a rush to at least appear plausible;)

jam_09

I have the email sent by the company confirming the authorisation to the direct debit although it doesn't say when the first payment would be taken and said that it would start with the next available issue which should have been before the 8th which was my currant account switch date. And yes i have done switches before but i was going to make this an everyday spending account due to the rewards and the fact they have high street branches, the only reason i did this quickly was to help my sister and her boyfriend with some money for after Christmas. I thought i followed the terms and conditions as there is no way of checking that the direct debit was "active" on NatWest although it must have been if not the company would have had the direct debit rejected if the account was closed as the switch says it should have been. Ive included the terms and conditions of this offer as no where does it state that you have to switch your main account to nationwide.

Recommend a Friend - Terms of this offer

The offer is we will credit your current account with £100 for each person you recommend to us on or after 1 August 2015. To be eligible for the offer the person you recommend must complete a full switch using the Current Account Switch Service to switch a current account with another provider to a Nationwide current account (excluding FlexBasic or FlexOne accounts) within 90 days of being recommended by you.
We may amend, extend or withdraw this offer at any time and without notice to you.
This offer is only available to our existing current account customers (excluding our employees) who hold either a FlexAccount, FlexDirect or FlexPlus Account. FlexBasic and FlexOne account holders are not eligible for this offer.
If you hold any current account with us that is being managed by our Recovery Department you will not be eligible for this offer.
Recommendations must be made using the online form at nationwide.co.uk/recommend.
A minimum of two Direct Debits must be transferred as part of the switch.
On completion of the switch we will credit your account and the account of the person you recommended with the offer payment by the 20th day of the month following the month in which their switch completes.
We reserve the right to claim back the offer payment from both parties if the recommended customer closes their account within 3 months of our crediting their account with the offer payment. We will do this by debiting the offer payment from both your and their account.
If you are recommending a friend there is no limit to the number of individuals you may recommend but the maximum amount we will pay you is for 10 recommendations in any 12 month period starting on the date of your first successful recommendation. The amount of the payment will depend on the offer applying at the time of the recommendation and completion of the switch.
If you have been recommended by a friend you will only be entitled to one payment under this offer in any 12 month period which starts when your first switch to us completes. This means that if you switch any additional accounts to us in that 12 month period no further payments will be made. The amount of the payment will depend on the offer applying at the time of the recommendation to us and completion of the switch.
This offer may not be used in conjunction with any of our other current account cash reward offers.

Yorkshire_Pud

It would be difficult to make a complaint to the bank you had the old now closed account with for not paying out on time and Nationwide simply paid the transferred DD so how can they be at fault.

If its not a condition that the DD must have paid out in the past before the switch then I guess you have a good case worth talking to Nationwide about and if you choose to, making a complaint.

As I said cutting things too fine is never a good idea to obtain incentives. I understand your personal reasons for wanting it to go through quickly but then it can lead to problems such as this thread illustrates.

P.S. I think Halifax payout just a few days after a Switch if speed is important.

PPS I ALWAYS tell a new bank I am switching to that it is a MAIN account, even though it isn't but could be. Its what they want to hear and they all want me to say it is a main account. In my mind a main account is one that gets me an incentive.

masonic

I'm with the OP on this one - the direct debit must have been transferred as part of the switch because there is no other way it could have appeared on the new account.

The OP has therefore met the T&Cs of the switching offer, so if NW withhold the payment they are treating the OP unfairly and so a complaint should be successful. If NW want to change their T&Cs to state that DDs need to have paid out previously, then of course they are free to do so, but they cannot bind their customers to new T&Cs retrospectively.