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

InhaleMood

I've had the same issue. Just phoned tesco and the guy was very helpful. He said they have let all of the other banks know that they are having to cancel the switches, so the banks should honour any incentives. He said if they don't, get a headed email and they will try to work it out.
Promising but nothing concrete! 

hoc

someone said:

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.

Their expectation for an account to be left with 0 balance makes customers uneasy. What happens if it accidentally goes into overdraft? The timing is also too far out, customers want to take action and get this over not drag out until November. Tesco should have made a simple 'close account' button in online banking that would close the account on zero balance at any time. They should do this for savings accounts also which require calling in wasting more customer service resources.

curl_girl

eskbanker said:

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!

Think ed mean't they don't have to approve it.

Still not heard anything officially from new bank.

[Deleted User]

hoc said:

someone said:

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.

Their expectation for an account to be left with 0 balance makes customers uneasy. What happens if it accidentally goes into overdraft? The timing is also too far out, customers want to take action and get this over not drag out until November. Tesco should have made a simple 'close account' button in online banking that would close the account on zero balance at any time. They should do this for savings accounts also which require calling in wasting more customer service resources.

Tosh - If no outstanding debit card payments and no no D/Ds - how can it 'accidentally go into overdraft'?

Tesco Bank should just have withdrawn from the optional CASS scheme and had done - what are the account holders going to do? No open anymore Current accounts with them? 

eskbanker

Deleted User said:.
Tosh - If no outstanding debit card payments and no no D/Ds - how can it 'accidentally go into overdraft'?

Forgotten continuous payment authorities for infrequent events, for one....

curl_girl

Contacted new bank, obviously blamed Tesco Bank.
Confirmed that switch incentive is valid but only for 3 months from new account application.

Also I didn't realise that you have to start the Switch request again,  I thought it would be automatic!

curl_girl

Was hoping for a Money Saving Expert update but nothing since 6th August.
Can Martin Lewis help please?

WillPS

curl_girl said:

Was hoping for a Money Saving Expert update but nothing since 6th August.
Can Martin Lewis help please?

What are you expecting him/them to do? This is entirely on Tesco Bank, who seem to prefer to give out £50 notes than get some extra capacity in. Put a complaint in and keep trying.

curl_girl

WillPS said:

curl_girl said:

Was hoping for a Money Saving Expert update but nothing since 6th August.
Can Martin Lewis help please?

What are you expecting him/them to do? This is entirely on Tesco Bank, who seem to prefer to give out £50 notes than get some extra capacity in. Put a complaint in and keep trying.

£50, what have I missed please?

curl_girl

Annoyed that I've not received correspondence from either parties. 
Is anyone else having problems still?