Direct Debit instructions not changed

forensic_bloo

I recently changed my bank accounts, and in doing so, my Mortgage payments to A&L were swapped from Santander to Nationwide.
After three months, A&L sent me a threatening letter demanding I pay my backdated mortgage payments as the direct debit, requests were not being met (because they were being directed to the "closed" account). They mentioned things like "before fines are implemented, and credit ratings are affected" - the usual affair.
Nationwide have provided me with a printout of the 8 DD requests they sent when the new account was opened, which includes A&L.


A&L are stating that because it was a mortgage account, I needed to tell them independently of Nationwide, "for security reasons"


I wish to complain, but who to, and how? Anyone got any ideas?


Thanks in advance

[Deleted User]

Complain to A&L

They should have changed the DD's over.

You are also covered by the CASS guarantee so you can also complain to CASS as well

Others have changed mortgage DD's with no issues at all using the CASS

badger09

forensic_bloo wrote: »

I recently changed my bank accounts, and in doing so, my Mortgage payments to A&L were swapped from Santander to Nationwide.
After three months, A&L sent me a threatening letter demanding I pay my backdated mortgage payments as the direct debit, requests were not being met (because they were being directed to the "closed" account). They mentioned things like "before fines are implemented, and credit ratings are affected" - the usual affair.
Nationwide have provided me with a printout of the 8 DD requests they sent when the new account was opened, which includes A&L.


A&L are stating that because it was a mortgage account, I needed to tell them independently of Nationwide, "for security reasons"


I wish to complain, but who to, and how? Anyone got any ideas?


Thanks in advance

A&L? Do you mean Alliance & Leicester, now Santander?

Nationwide have provided a print including the mortgage payment DD. If they requested the DD payment, I would have expected some record of it, ie unpaid/returned DD. Have you asked Nationwide?

dunstonh

on bank transfers, it is quite common and normal for a handful of direct debits to fail to be transferred over. What normally happens is that the originator requests a new mandate from you.

This can happen where the originator reference number has changed over the years and the bank or building society uses an old number rather than the most recent number. It is largely an automated system with no cross-referencing and very little human oversight. So, Nationwide think they have told the originator but the originator hasn't received the request.

Your use of "A&L" rather than Santander suggests it could be an old reference number.

They mentioned things like "before fines are implemented, and credit ratings are affected" - the usual affair.

They do not issue fines. However, they can charge you arrears fees and you are already incurring extra interest.

I wish to complain, but who to, and how? Anyone got any ideas?

You could complain to both but neither is likely to be in the absolute wrong. Its likely just one of those quirks.

However, you are also largely at fault here as well as bounced direct debits for 3 months would have seen multiple letters sent to you. When the direct debits bounced, they would have had the "account transferred" or "account closed" reason. So, its likely a new mandate was sent to you for completion. For this to still be outstanding after 3 months suggests you have ignored multiple communications.

The guarantee may cover any fees incurred. However, it will not change the fact that you need to make the missing payment up ASAP. Santander do accept card payments over the phone.

forensic_bloo

dunstonh wrote: »

on bank transfers, it is quite common and normal for a handful of direct debits to fail to be transferred over. What normally happens is that the originator requests a new mandate from you.

This can happen where the originator reference number has changed over the years and the bank or building society uses an old number rather than the most recent number. It is largely an automated system with no cross-referencing and very little human oversight. So, Nationwide think they have told the originator but the originator hasn't received the request.

Your use of "A&L" rather than Santander suggests it could be an old reference number.



They do not issue fines. However, they can charge you arrears fees and you are already incurring extra interest.



You could complain to both but neither is likely to be in the absolute wrong. Its likely just one of those quirks.

However, you are also largely at fault here as well as bounced direct debits for 3 months would have seen multiple letters sent to you. When the direct debits bounced, they would have had the "account transferred" or "account closed" reason. So, its likely a new mandate was sent to you for completion. For this to still be outstanding after 3 months suggests you have ignored multiple communications.

The guarantee may cover any fees incurred. However, it will not change the fact that you need to make the missing payment up ASAP. Santander do accept card payments over the phone.

Thankyou, that's very comprehensive. I arranged a new DD and made up the payments as soon as I got the letter, which was before Christmas.
There may well have been previous letters, although I can not find them just now. Perhaps I had better just leave well alone in this case.


as a footnote - we moved from Santander because of their administrative incompetence. (losing legal papers, failing to update information etc) maybe that clouded my vision in this case


Thank again, much appreciate your (and everyone else's) time

mgdavid

for the future, try to get in the habit of checking your transactions / statements online at least monthly - preferably weekly - then you will be aware if regular payments like mortgage DDs aren't being paid.
I'm amazed you didn't wonder why your current balance was so high in any case!