Anyone switching banks not had their salary switched?

goatfaced

My son got his salary for Feb paid into his new account (around 2 weeks after his switch completed) but not his march salary. He's been told today it's because he didn't tell his employer he switched banks and his march salary would have bounced back. 

I thought payments were automatically redirected anyway? 

I told him the switching service should sort it and not to worry, and indeed it seems the Feb payment was forwarded okay. His boss seemed to think he shouldn't have listened to me. Hmph!

Has anyone else had this happen? My husband and I have switched a few times and our salary has always been automatically sorted. 

eskbanker

goatfaced said:

My son got his salary for Feb paid into his new account (around 2 weeks after his switch completed) but not his march salary. He's been told today it's because he didn't tell his employer he switched banks and his march salary would have bounced back.

Who told him this?  You're right that payments are automatically redirected, so if the payment had been attempted to the old account then all would have been fine - there's no need for the employee to notify their employer but senders are notified directly by the new bank so it may be that someone made a mistake when 'correcting' the details?

boingy

eskbanker said:

goatfaced said:

My son got his salary for Feb paid into his new account (around 2 weeks after his switch completed) but not his march salary. He's been told today it's because he didn't tell his employer he switched banks and his march salary would have bounced back.

Who told him this?  You're right that payments are automatically redirected, so if the payment had been attempted to the old account then all would have been fine - there's no need for the employee to notify their employer but senders are notified directly by the new bank so it may be that someone made a mistake when 'correcting' the details?

Exactly that happened to a colleague of mine a couple of years ago. He switched accounts and didn't bother telling the payroll person because he knew it was automatic. One day she came to see him to ask if he had changed because she had had a notification. He confirmed it and she went back but made an error when she updated his payroll record. So his salary went AWOL for a few days in the second month. It was quickly sorted but if he had incurred any costs due to briefly going overdrawn it would not have been covered by the CASS guarantee. 

steven141

The redirection is only for 3 years so I would always just use it as a last resort and change your bank details with your employer. 

goatfaced

His boss said it, in a way that implied that needing to tell your employer was common knowledge. They could see he switched from Barclays to Lloyds (he didn't know TSB was Lloyds so he probably got anxious at that point and may have misheard things, he hates the phone anyway). I'm just so confused because the February payment got forwarded, and miffed because he said it was probably the bank switch and I told him it wouldn't be that, so now I'm in the wrong and he will bring it up every time I give him advice 🤣 

At least it's being sorted.

eskbanker

steven141 said:

The redirection is only for 3 years so I would always just use it as a last resort and change your bank details with your employer. 

No, it carries on indefinitely for as long as payments are being redirected, until there's a 13 month period in which none are.

goatfaced said:

His boss said it, in a way that implied that needing to tell your employer was common knowledge. They could see he switched from Barclays to Lloyds (he didn't know TSB was Lloyds so he probably got anxious at that point and may have misheard things, he hates the phone anyway).

TSB isn't Lloyds and hasn't been associated with them for over ten years, so worth checking exactly what's going on....

goatfaced said:

I'm just so confused because the February payment got forwarded, and miffed because he said it was probably the bank switch and I told him it wouldn't be that

The fact that the February pay went through (via the automatic redirection process) adds weight to the theory that the employer has messed up the (manual) change in account details within the payroll system.

macy08

Employers should be notified by BACS that account details have changed. It states the old and the new details. The employer must have entered the wrong details. If he had done 'nothing' the wages would have been directed from the old to the new bank account automatically in March. They would have then received another notice from BACS advising them to update account details. 

goatfaced

Thank you all for reassuring me that I didn't give him dud advice. Fingers crossed he will get paid soon now he's given them his new details. He's less worried about the whole switching process now but will probably use a dummy account if there's a next time to avoid complications. 

steven141

goatfaced said:

His boss said it, in a way that implied that needing to tell your employer was common knowledge. They could see he switched from Barclays to Lloyds (he didn't know TSB was Lloyds so he probably got anxious at that point and may have misheard things, he hates the phone anyway). I'm just so confused because the February payment got forwarded, and miffed because he said it was probably the bank switch and I told him it wouldn't be that, so now I'm in the wrong and he will bring it up every time I give him advice 🤣 

At least it's being sorted.

I recently updated my bank account to my Lloyds Bank at my work and when I put in the details it automatically showed Lloyds TSB which I thought was strange. I think that workplaces must be using a system that is out of date. That’s probably why they saw TSB.