MSE News: Tesco Bank to close ALL existing current accounts - what it means for customers

curl_girl

Shakin_Steve said:

I just left enough in our current account to pay both of the Tesco credit cards this month, and emptied our savings account. I'm calling it quits, can't be bothered opening another account and can't be bothered trying to close savings account or credit cards.
When the cards are paid I'll delete the app and forget all about Tesco.

They're not closing savings accounts or credit cards just current accounts. 

Thrugelmir

curl_girl said:

Advice please!
Tesco bank have refused to switch my current account to my new bank due to High Demand!

Surely this is against the rules on bank switching?

The rules ban high demand. 

WillPS

Thrugelmir said:

curl_girl said:

Advice please!
Tesco bank have refused to switch my current account to my new bank due to High Demand!

Surely this is against the rules on bank switching?

The rules ban high demand. 

Which 'rule' is this please?

curl_girl

WillPS said:

Thrugelmir said:

curl_girl said:

Advice please!
Tesco bank have refused to switch my current account to my new bank due to High Demand!

Surely this is against the rules on bank switching?

The rules ban high demand. 

Which 'rule' is this please?

Is it part of the Switch Guarantee?

I'm in limbo at the moment,  no idea what is going on with either old or new account!
May have to phone...

jimjames

curl_girl said:

WillPS said:

Thrugelmir said:

curl_girl said:

Advice please!
Tesco bank have refused to switch my current account to my new bank due to High Demand!

Surely this is against the rules on bank switching?

The rules ban high demand. 

Which 'rule' is this please?

Is it part of the Switch Guarantee?

I'm in limbo at the moment,  no idea what is going on with either old or new account!
May have to phone...

The link below says the following:

If there’s a problem with your switch you should contact the bank or building society you are switching to. If you've got any questions about the switching process, take a look at our how to switch page.

https://www.currentaccountswitch.co.uk/helpandsupport/Pages/help.aspx

So contact the new bank to deal with it

WillPS

curl_girl said:

WillPS said:

Thrugelmir said:

curl_girl said:

Advice please!
Tesco bank have refused to switch my current account to my new bank due to High Demand!

Surely this is against the rules on bank switching?

The rules ban high demand. 

Which 'rule' is this please?

Is it part of the Switch Guarantee?

I'm in limbo at the moment,  no idea what is going on with either old or new account!
May have to phone...

It's not a "rule", don't worry. Somebody stating fact without or contrary to the available evidence, which is sadly becoming the norm on this board, hence me calling it out.

someone

Tesco bank said they have 213,000 accounts and 12% are used for day to day banking.

The banking industry publishes gains/losses via CASS and some banks such as Tesco opt in to further reporting reporting

Recently they have been averaging <1,000 switch outs a month.

Now look at how many switches they might be getting a month. I would guess half of accounts would be switched and for simplicity lets assume the demand is even throughout the 4 months notice. (213,000 * 50%)/4 = 26,625 switches a month, more than two years worth of switch outs!

I think they instead looked at the 12% of customers who use their account for day to day banking and assumed only them would consider go via the CASS route. That would be (213,000 * 12%)/4 = 6,390 switches a month.

This is all speculation but easy to see how it looks so well planned on a Power Point deck but fail in execution. In any case I detect a looming PR disaster and a fine from the regulator.

jimjames

I'd assumed (maybe wrongly) that the CASS system was automated so once triggered it just happened. That would appear to not be the case

Ed-1

jimjames said:

I'd assumed (maybe wrongly) that the CASS system was automated so once triggered it just happened. That would appear to not be the case

The old bank has to accept the instruction. They don't have to accept it (usually this may be because the account has a block on it or the debit card number provided for security on the switch request is wrong).

eskbanker

Ed-1 said:

jimjames said:

I'd assumed (maybe wrongly) that the CASS system was automated so once triggered it just happened. That would appear to not be the case

The old bank has to accept the instruction. They don't have to accept it (usually this may be because the account has a block on it or the debit card number provided for security on the switch request is wrong).

Nice bit of doublespeak there!