Current account switch, incoming payments "redirected" meaning?

yourlocalcheesemonger

My mum has switched accounts to Lloyds and is wondering how exactly her incoming payments are "redirected". She has a flat which she lets out so her tenant has set up a standing order to her account. When she switches, will the tenant's standing order payment details change to her new current account ac # and sort#. Or does she need to tell the tenant her new details?

Thanks.

eskbanker

The payments will be redirected automatically, without her needing to inform the sender.

Nasqueron

It is worth changing them longer term though, though the payments should be redirected, it's probably better to update eventually

retiredbanker1

Nasqueron said:

It is worth changing them longer term though, though the payments should be redirected, it's probably better to update eventually

No need.
The CASS system will update the standing order details - it won't change anything back after say 13 months or whatever if that is what you are alluding to?

yourlocalcheesemonger

eskbanker said:

The payments will be redirected automatically, without her needing to inform the sender.

Nasqueron said:

It is worth changing them longer term though, though the payments should be redirected, it's probably better to update eventually

I'm still unclear sorry. Are you saying that after she switches the payments into her new account will still go via her old, now closed, account details? As in the standing orders set up that pay her wont be updated with her new account number and sort?

Olinda99

retiredbanker1 said:

Nasqueron said:

It is worth changing them longer term though, though the payments should be redirected, it's probably better to update eventually

No need.
The CASS system will update the standing order details - it won't change anything back after say 13 months or whatever if that is what you are alluding to?

I don't think redirection is indefinite if that is what you are saying

Katiehound

A quick google suggests that such payments will be redirected for 36 months.... not for ever!

Personally I would update such payments, but there is no need to rush

eskbanker

yourlocalcheesemonger said:

eskbanker said:

The payments will be redirected automatically, without her needing to inform the sender.

Nasqueron said:

It is worth changing them longer term though, though the payments should be redirected, it's probably better to update eventually

I'm still unclear sorry. Are you saying that after she switches the payments into her new account will still go via her old, now closed, account details? As in the standing orders set up that pay her wont be updated with her new account number and sort?

There's a central BACS-managed redirection engine that intercepts payments heading towards the old account and sends them to the new one, without them ever actually reaching the old account.  Part of the process also entails the new bank sending the updated details to the sending bank.

Olinda99 said:

retiredbanker1 said:

Nasqueron said:

It is worth changing them longer term though, though the payments should be redirected, it's probably better to update eventually

No need.
The CASS system will update the standing order details - it won't change anything back after say 13 months or whatever if that is what you are alluding to?

I don't think redirection is indefinite if that is what you are saying

Katiehound said:

A quick google suggests that such payments will be redirected for 36 months.... not for ever!

Personally I would update such payments, but there is no need to rush

Redirection is carried out for a minimum of 36 months but does effectively continue indefinitely until there's a 13 month period in which no payments are redirected.

yourlocalcheesemonger

eskbanker said:

yourlocalcheesemonger said:

eskbanker said:

The payments will be redirected automatically, without her needing to inform the sender.

Nasqueron said:

It is worth changing them longer term though, though the payments should be redirected, it's probably better to update eventually

I'm still unclear sorry. Are you saying that after she switches the payments into her new account will still go via her old, now closed, account details? As in the standing orders set up that pay her wont be updated with her new account number and sort?

There's a central BACS-managed redirection engine that intercepts payments heading towards the old account and sends them to the new one, without them ever actually reaching the old account.  Part of the process also entails the new bank sending the updated details to the sending bank.

Olinda99 said:

retiredbanker1 said:

Nasqueron said:

It is worth changing them longer term though, though the payments should be redirected, it's probably better to update eventually

No need.
The CASS system will update the standing order details - it won't change anything back after say 13 months or whatever if that is what you are alluding to?

I don't think redirection is indefinite if that is what you are saying

Katiehound said:

A quick google suggests that such payments will be redirected for 36 months.... not for ever!

Personally I would update such payments, but there is no need to rush

Redirection is carried out for a minimum of 36 months but does effectively continue indefinitely until there's a 13 month period in which no payments are redirected.

Ok, so should be fine for a while but better to manually inform those who pay in

Nasqueron

retiredbanker1 said:

Nasqueron said:

It is worth changing them longer term though, though the payments should be redirected, it's probably better to update eventually

No need.
The CASS system will update the standing order details - it won't change anything back after say 13 months or whatever if that is what you are alluding to?

No, just saying that longer term, you might as well get them updated so they are paying direct, not relying on the system to continually redirect - it's not impossible for banks to fail, a system to go down etc