Payment into closed account

metrobus

After switching my bank account from Halifax to Nationwide using the switch service I have had a payment paid into my old closed Halifax account.

I know payments are passed on to the new account but for how long does this arrangement last please?

Thank you.

metrobus

To answer my own question after a bit of googling I've found out the the current account switch service will redirect payments into the new account for up to 3 years.

18cc

So what on earth does 'up to' mean is it 3 years or not!

eskbanker

I believe it's actually at least three years now, as per https://forums.moneysavingexpert.com/discussion/comment/74828875#Comment_74828875

eskbanker wrote: »

My understanding is that the redirection period was extended last year so that instead of 36 months, it's effectively indefinite after that until a 13-month period passes without any redirections.

This was trailed at https://www.moneysavingexpert.com/news/2017/01/redirection-period-for-payments-to-old-bank-accounts-to-be-extended-/ as a result of BACS committing to the CMA that it would implement recommendations from an earlier report, as per https://assets.publishing.service.gov.uk/media/587ded7eed915d0aeb00015d/retail-banking-investigation-final-bacs-undertakings.pdf:

4.1 Bacs shall maintain the current 36-month CASS redirection period, which redirects payments and payment requests to the current PCA or BCA for customers who have switched PCA or BCA and receive a payment or payment request into an old account, and then continue to provide CASS redirection for customers as long as they have had a redirection payment or payment request within the preceding 13 months.

However, I can't find any reference within the main BACS or CASS sites to this definitely having been implemented as planned for July 2017, does anyone have a definitive verifiable source that this is now how it works?

metrobus

18cc wrote: »

So what on earth does 'up to' mean is it 3 years or not!

It means that payments will go into your new account for 3 years.

If one is made in 6 months it goes in then and any further one up to 3 years in the future will also go in.

Pretty obvious really.

jonesMUFCforever

The only thing I have to add is that for the payment to have gone from the 'closed' account to the new 'account' then the CASS has to electronically change the account details - so why would they change them again after 3 years.
I believe that once a credit is re-directed then it will say that way forever.

Not sure if the CASS has been going longer than 3 years to test this.

isasmurf

metrobus wrote: »

To answer my own question after a bit of googling I've found out the the current account switch service will redirect payments into the new account for up to 3 years.

Why Google when it's written in Nationwide's switch guarantee?

1.13. For 3 years after the Switch Date if your Old Bank receives payments or requests for payments which relate to your Old Account, subject to compliance with applicable laws, it will redirect these to your New Account. However, if there is an outstanding debt on your Old Account, your Old Bank is entitled to use any funds or payments it receives (including by cheque) in full or part settlement of the debt on your Old Account. The originators of any redirected payments or payment requests will be advised of your New Account details.

1.14. In the unlikely event that payments continue to be redirected to your New Account during the 13 months leading up to the end of the 3 year redirection period we will automatically extend the redirection service and the term of this Agreement until such time as there is a 13 month period when no Direct Debits, Bacs Direct Credits or Faster Payment transactions have been automatically redirected by the central redirection service. Consequently payments made with intervals of more than 13 months will be disregarded.

18cc

No it's not pretty obvious really. if they stated payments will be transferred for 3 years that is pretty obvious. if they stated payments will be transferred for 'up to' 3 years that is not pretty obvious. it simply means that is a maximum amount - they can stop transferring payments after a week if they wanted to

Asfandiyar

Not always so, it is possible to return the money to the sender's account, usually takes 8 to 20 days. If possible, call the Bank and explain the situation. I think you can speed things up.