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MSE News: Redirection period for payments to old bank accounts to be extended

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MSE News: Redirection period for payments to old bank accounts to be extended

edited 30 November -1 at 1:00AM in Budgeting & Bank Accounts
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edited 30 November -1 at 1:00AM in Budgeting & Bank Accounts
Stray payments sent to your old bank account could be redirected to your new account decades after you've switched...
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'Redirection period for payments to old bank accounts to be extended '
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  • agrinnallagrinnall
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    It's probably not a big deal for the banks to extend this, as the code is in place for 36 months of redirections anyway it should be simple to remove the date check, and it's unlikely to cost much to process the small number of payments that are made after that time.
  • pinkdalekpinkdalek Forumite
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    This is old news.
  • cheesetoastcheesetoast Forumite
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    What would be more useful is if the recipient was actively told that a payment had been redirected, so they could contact the payer and give them the new details.
  • SystemSystem
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    What would be more useful is if the recipient was actively told that a payment had been redirected, so they could contact the payer and give them the new details.

    They are - you have to make special arrangements, if you don't wish them informed.
  • They need to let you keep your current bank account while still using the seven day switching process. Personally, this has stopped me from switching.
  • ZandermanZanderman Forumite
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    skyzen wrote: »
    They need to let you keep your current bank account while still using the seven day switching process. Personally, this has stopped me from switching.
    The whole point of 'switching'- and the reason the banks pay an incentive for it - is to switch 'all' your banking to the new account. Letting you keep the old account undermines that concept entirely.
    If you don't want to switch your old account don't.
    But do open another account with the same bank and switch that one instead.
    That way you fulfill the switch requirements ('all' of the banking from the account will have been switched) but you still have your original account, unaltered.
  • agrinnallagrinnall
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    pinkdalek wrote: »
    This is old news.

    Depends how you look at it, the recommendations to extend the redirection period were made in August 2016, so that's old, but the acceptance of the proposals by BACS only happened yesterday so that is new news.

    https://www.bacs.co.uk/NewsCentre/PressReleases/Pages/BacsCommitsToCMAUndertakings.aspx
  • mt99mt99 Forumite
    472 posts
    Actually you don't have to close your 'old' current account to switch. You can switch and specify your old account remains open. All DDs, SOs and balance etc will be switched over but the old account will remain open.


    Only proviso is that if you are switching for a incentive (eg £150 cash) then the T and Cs for that incentive may well specify that the old account has to be closed.
  • mt99mt99 Forumite
    472 posts
    I wish there was a savings account switch process - it would save a lot of hassle.
  • YorkshireBoyYorkshireBoy Forumite
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    mt99 wrote: »
    Actually you don't have to close your 'old' current account to switch. You can switch and specify your old account remains open. All DDs, SOs and balance etc will be switched over but the old account will remain open.


    Only proviso is that if you are switching for a incentive (eg £150 cash) then the T and Cs for that incentive may well specify that the old account has to be closed.
    You won't get any protection though for doing a 'partial switch'. So if any DD payments are missed you're on your own!


    I'm not sure all banks offer a 'partial switch' service though do they?
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