direct debit to come from account closed after switch

scorpian81

Hi,
I have recently switched accounts using the switching service. It's all fine, but a letter came yesterday from a different bank to say my next credit card bill will be taken from my old account (tomorrow) and then the new one afterwards.
I know payments in are redirected, but I'm unsure about direct debits. I cannot phone on a Sunday and the bill comes out tomorrow.
The letter mentions making a one-off payment, but as it is too late to cancel the debit, I don't want to risk paying twice.
I'm just concerned i am at risk of defaulting or showing as missing a payment on the credit card. Does anyone know what will happen?
Thanks,
Ian.

bigadaj

Assuming you've used cass then there shouldn't be anything to worry about.

The payment should be made from one of the accounts, if not then the bank to which the account has been switched will cover any charges.

The worst thing might be a late payment market on your credit file which won't be significant unless you have a poor file in any case. You might need to add a note to your credit file explains no waht happened if the worst happens and you think there may be an impact.

scorpian81

Hi, thanks for your reply. I did use the cass and was hoping there should be nothing to worry about. I didn't know I could put a note on my credit file/report. I have the noddle/credit karma free report so I will remember to check if there has been an impact. Hopefully not!

Willing2Learn

If it were me, I would make an online faster payment for the minimum contractual monthly amount, to avoid any possibility of a negative marker on any of your three credit files.

YorkshireBoy

Willing2Learn wrote: »

If it were me, I would make an online faster payment for the minimum contractual monthly amount, to avoid any possibility of a negative marker on any of your three credit files.

An FD employee has previously stated on here that the banks have a mechanism for ensuring such markers are removed quickly.

The new bank will contact the DD originator, stating the reason (ie CASS issue) and any marker will be removed.

Hassle? Yes. Lasting damage? No.

scorpian81

Thanks for your reply. That makes sense, and hopefully the banks will sort it out between themselves. I can't be the first person this has happened to, and CASS is for the benefit of the consumer after all.:)

colsten

If you have to devote a lot of time to sort this, file a formal complaint with the bank that processed your switch. It's their responsibility to sort it all, and to see that you don't end up with any markers on your credit file. They should re-imburse you for any time you had to put in to have it sorted. I would file a formal complaint with them tomorrow.

BTW, who are the bank? TSB, by any chance?

Ballard

The CASS service should mean that any debits or credits from your old account will be redirected to the new one so I wouldn’t give it another thought. If the funds are requested from your old account that bank should forward the debit to your new account under advice to the originator so that their records are updated.

If something goes awry then that is the time to complain.

System

Indeed. I've switched a few times and the DD originators often haven't a clue where the funds will come from - even credit card companies seem oblivious - but it all works out absolutely fine. Some will claim it will take a few weeks for the new bank to setup the new DD, others will assure you they will not be able to take the next debit and some will send a new DD mandate through the post. My Barclaycard online banking showed the oldest account of three recent switches for ages after the third switch, but funds were always correctly debited from the latest account.