Urgent account switch enquiry

Echo777

Good evening

I recently switched current accounts from TSB to Monzo.

I completely forgot to notify HMRC that I had changed accounts and I have child benefit due to be paid in on Monday, leaving me no time to change my bank details with them prior to the payment.

The issue is that I have a large overdraft with TSB that I am yet to be able to repay. I need the child benefit payment for basic living costs. Will the child benefit payment be swallowed up by this overdraft, or will it automatically be redirected to my new account? I'm really worrying about this.

Any help greatly appreciated.

jonesMUFCforever

So you have not actually switched the account?
You have left TSB for Monza is that correct?

If the money goes into your old account you can ask them for an 'Appropriation' for the benefits amount - best to phone the bank first as I don't think branch staff can authorise something like this. You can do this once with most banks - the second time the account could be closed or in your circumstances be sent to their collections department.
It probably will be better if you can prepare a statement of affairs before you phone (income and expenditure) as they will want you to enter into an agreement to repay the overdraft over a set period of time.

Ben8282

How can you 'switch' an account and leave the original account overdrawn.
What you appear to have done is open a new account with the intention of running away from your debts and leaving the TSB account overdrawn with nothing being paid in.
I have no sympathy for you.

18cc

Only if you use the current account switching service cass will the money be forwarded on

it doesn't sound as though you did do this in which case the money will just stay in TSB

Willing2Learn

Echo777 wrote: »

… I recently switched current accounts from TSB to Monzo.

I completely forgot to notify HMRC that I had changed accounts and I have child benefit due to be paid in on Monday, leaving me no time to change my bank details with them prior to the payment.

The issue is that I have a large overdraft with TSB that I am yet to be able to repay. I need the child benefit payment for basic living costs. Will the child benefit payment be swallowed up by this overdraft, or will it automatically be redirected to my new account? I'm really worrying about this...

Hi and welcome to the forum

From the tone of your post, you appear to be struggling financially. I therefore recommend that you head over the Debt-Free Wannabe sub-forum for advice, support and guidance. It would be helpful if you could post up your Statement of Affairs (SOA) so that we can see your exact circumstances. Thanks.

http://www.stoozing.com/calculator/soa.php

For what it is worth, I **think** that the your benefit payment will automatically be redirected if you have used the CASS switching system.

PRAISETHESUN

Based on a few other posts I've read with people in similar situations to yours, trying to switch accounts with CASS while you have an outstanding overdraft with your original bank is likely to fail. The account opening and account switching process are completely separate so you will likely end up with two accounts - your new one with Monzo and your original with TSB. In this case, your benefits will continue to be paid into your TSB account as payments are only re-directed following a successful switch (which closes your original account).

TSB (or any lender for that matter) reserve the right to "set off" any credits against your outstanding overdraft. In this instance they are allowed to use your benefits to do this, however if this is likely to cause you hardship then you should definitely get in touch to let them know and come to an arrangement with them - the advice above about preparing a SOA is probably a good start before you get in touch.

Echo777

I was simply asking a question.

Don't look down on someone unless you are helping them up.

Robin9

And the replies you have been given are trying to help.

On Monday access your TSB account online and transfer the Child Benefit payment to Monzo.

Have you had any correspondence fro TSB - sorry to be loosing you. If not then you TSB account remains open.

Zanderman

Echo777 wrote: »

I was simply asking a question.

Don't look down on someone unless you are helping them up.

Don't get too bothered by seemingly negative replies.

The key question is did you switch using the CASS (Current Account Switching Service)?? If you did then payments will automatically be forwarded as the old account will have closed on Day 7 of starting the switch (note this is NOT necessarily day 7 of opening the new account).

BUT... a CASS switch would switch your overdraft too. Or fail if you tried it without declaring the overdraft

You suggest that the overdraft is staying at TSB. Which suggests your TSB account remains open. Which suggests you haven't used CASS. Which means there won't be any auto forwarding of payments.

So, if you're going to get accurate advice please say how you opened the new account and whether a formal switch is underway. Hope this helps.

eskbanker

Zanderman wrote: »

a CASS switch would switch your overdraft too. Or fail if you tried it without declaring the overdraft

I don't believe that CASS ever actually switches an overdraft as such, but a CASS switch can go ahead if the switcher gains access to enough funds to repay the overdraft, such as if they secure an overdraft of at least the same size with the new bank when applying.

https://www.currentaccountswitch.co.uk/helpandsupport/Pages/help.aspx doesn't really make this point clearly enough IMHO:

Can I switch my current account if I am overdrawn?

Yes. You will need to agree any overdraft facilities you require with your new bank or building society. Alternatively, they may be able to provide facilities to help you pay off any existing overdraft you may have, subject to their normal lending criteria. If you do not come to an agreement with your new bank you must make separate arrangements to repay your existing overdraft before you switch.

To me this should be expressed more simply as "no, you have to pay off the overdraft first".

I haven't done a CASS switch for a while now (and have never done so on an overdrawn account) but would have thought that it shouldn't be beyond the wit of man to have some sort of automated check prior to a switch that repayment of any overdraft has been arranged before going ahead, as it seems that some switches partially succeed at the moment, leaving things in limbo....

Silver_Queen

I did a CASS switch from an account with an overdraft (accidentally - I foolishly got my account numbers mixed up, entirely my fault) and the account itself did switch with all the outgoing DDs. I qualified for the switch bonus, but my old overdraft still existed in its own right until I paid it off. I didn't have any money paid into the account at the time so I'm afraid I can't help on your question about child benefit. My instincts are that the child benefit will get swallowed up by the OD and you will not be able to spend on the OD.