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    • Former MSE Helen
    • By Former MSE Helen 16th Aug 13, 8:27 AM
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    Former MSE Helen
    MSE News: Faster current account switching is coming but cards not included
    • #1
    • 16th Aug 13, 8:27 AM
    MSE News: Faster current account switching is coming but cards not included 16th Aug 13 at 8:27 AM
    "Bank customers will be able to switch accounts within seven working days from 16 September..."

    Read the full story:

    Faster current account switching is coming but cards not included




    Click reply below to discuss. If you havent already, join the forum to reply. If you arent sure how it all works, read our New to Forum? Intro Guide.

Page 1
    • Archi Bald
    • By Archi Bald 16th Aug 13, 8:42 AM
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    Archi Bald
    • #2
    • 16th Aug 13, 8:42 AM
    • #2
    • 16th Aug 13, 8:42 AM
    It's not only cards that haven't been considered. For starters, sorting out Internet access often takes a week. You'd be mental if you started using a bank account, or asked for a switcher service to start moving things for you before you are able to look at your account, or at least have telephone banking sorted out (which again can easily take a week to sort out).

    Other aspects that I have not seen addressed are
    • how will CPAs be handled?
    • what will happen to irregular incoming payments to the old account (e.g. tax refunds)?
    • what is the guidance to people about "linked accounts" - presumably they will have to change this themselves?

    Also, a blanket "if you are unhappy, then switch" isn't really helpful. People should analyse why they are unhappy, and what they themselves can do to improve the situation. For instance, if the unhappiness is caused by overdraft or unpaid item charges, the answer isn't to switch but to sort out their own money management.
    • brewerdave
    • By brewerdave 16th Aug 13, 12:07 PM
    • 5,608 Posts
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    brewerdave
    • #3
    • 16th Aug 13, 12:07 PM
    • #3
    • 16th Aug 13, 12:07 PM
    ...and in light of my current switch in progress from NatWest to Santander, after 15 working days still not complete due to shortcomings with various merchants' switching processes -two still not set up on the new account and one failed and has been reinstated on the old account! Plus my old bank have given the details of at least 7 expired DDs to Santander !

    7 WORKING DAYS ? I don't think so!!
  • Wywth
    • #4
    • 16th Aug 13, 12:10 PM
    • #4
    • 16th Aug 13, 12:10 PM
    • how will CPAs be handled?
    Originally posted by Archi Bald
    Presumably the customer is expected to supply the service provider with their updated payment card details.

    • what will happen to irregular incoming payments to the old account (e.g. tax refunds)?
    Originally posted by Archi Bald
    The switching comes with a 13 month guarantee. Plenty of time to update the likes of HMRC about your revised banking arrangements. I have to provide HMRC a tax return every 12 months.


    • what is the guidance to people about "linked accounts" - presumably they will have to change this themselves?
    Originally posted by Archi Bald
    What do you mean by a linked account? Something like a savings account linked to that providers current account?
    If so, and you terminate your current account with that provider, then presumably you'll need to close any such additional accounts too (or perhaps the bank will when they find out you have terminated your current account with them)
  • Wywth
    • #5
    • 16th Aug 13, 12:13 PM
    • #5
    • 16th Aug 13, 12:13 PM
    ...and in light of my current switch in progress from NatWest to Santander, after 15 working days still not complete due to shortcomings with various merchants' switching processes -two still not set up on the new account and one failed and has been reinstated on the old account! Plus my old bank have given the details of at least 7 expired DDs to Santander !

    7 WORKING DAYS ? I don't think so!!
    Originally posted by brewerdave
    The article says currently switching takes 18 - 30 working days
    • zerog
    • By zerog 16th Aug 13, 1:47 PM
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    zerog
    • #6
    • 16th Aug 13, 1:47 PM
    • #6
    • 16th Aug 13, 1:47 PM
    So what happens if you switch several times? Will you be able to get a payment to the oldest account forwarded through 10 different banks?
    • JuicyJesus
    • By JuicyJesus 16th Aug 13, 1:49 PM
    • 3,550 Posts
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    JuicyJesus
    • #7
    • 16th Aug 13, 1:49 PM
    • #7
    • 16th Aug 13, 1:49 PM
    Why on earth would anyone think debit cards were included...?
    urs sinserly,
    ~~joosy jeezus~~
    • Archi Bald
    • By Archi Bald 16th Aug 13, 2:50 PM
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    Archi Bald
    • #8
    • 16th Aug 13, 2:50 PM
    • #8
    • 16th Aug 13, 2:50 PM
    Why on earth would anyone think debit cards were included...?
    Originally posted by JuicyJesus

    The promise touted - e.g. on the Payments Council website - is that it will take a week to switch current account. According to the Payments Council, your old account will get closed by the switcher service.

    So why on earth would anyone not think that switching current accounts includes a debit card for the new account?
    • Herbalus
    • By Herbalus 16th Aug 13, 3:38 PM
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    Herbalus
    • #9
    • 16th Aug 13, 3:38 PM
    • #9
    • 16th Aug 13, 3:38 PM
    The promise touted - e.g. on the Payments Council website - is that it will take a week to switch current account. According to the Payments Council, your old account will get closed by the switcher service.

    So why on earth would anyone not think that switching current accounts includes a debit card for the new account?
    Originally posted by Archi Bald
    Agree. Most people would think that a new account means new cards, so will expect it to be included. Plus, if your old account is closed (though not technically closed as it will re-route payments into the account for 13 months), and your new debit card hasn't been made yet, how are people - and there are probably millions who only have one account - expected to buy things?
  • Dr_Cuckoo3
    http://www.paymentscouncil.org.uk/switch_service/faqs/



    I wouldn't be selecting the earliest date possible
    Hi, weve had to remove your signature. If youre not sure why please read the forum rules or email the forum team if youre still unsure - MSE ForumTeam
    • brewerdave
    • By brewerdave 16th Aug 13, 3:47 PM
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    brewerdave
    The article says currently switching takes 18 - 30 working days
    Originally posted by Wywth
    ..yes -but I have a letter from Santander saying the changeover is complete dated 12th August- but that they haven't had confirmations from A,B,C etc that their records have been updated ...and there is nothing more they can do!
  • pqrdef
    Why on earth would anyone think debit cards were included...?
    Originally posted by JuicyJesus
    Well, they might not understand how the banking system works. Or they might be misled by the Payments Council's habit of talking as if it runs the whole payment system, and ignoring the existence of the half that it doesn't run.
  • rb10
    ..yes -but I have a letter from Santander saying the changeover is complete dated 12th August- but that they haven't had confirmations from A,B,C etc that their records have been updated ...and there is nothing more they can do!
    Originally posted by brewerdave
    Certain organisations (local councils are often a culprit) refuse to act on the advice of a bank, and instead require you to contact them directly.

    It should just take a quick phone call or letter.
    • Archi Bald
    • By Archi Bald 16th Aug 13, 6:04 PM
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    Archi Bald
    Certain organisations (local councils are often a culprit) refuse to act on the advice of a bank, and instead require you to contact them directly.
    Originally posted by rb10
    I can't wait to hear how this issue has been resolved once the Current Account Switch Guarantee is with us. I suppose "If there are any issues in making the switch, we will contact you before your switch date" is their get-out-of-jail-card.

    I wouldn't personally let any bank make any switch for me (unless I set up some a special, basically unused, account for the purpose) but I feel very strongly that if the Payments Council, George Osborne, and the banks tell us that it takes 7 days, it should take seven days. Not a day longer, and partial completion isn't acceptable.
    • Archi Bald
    • By Archi Bald 16th Aug 13, 6:15 PM
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    Archi Bald
    Let's remind ourselves what Gideon is said to have said:

    Osborne said in a speech today: "From September this year, every customer of every bank in Britain will be able to switch their bank account from their existing bank to another one in seven days.

    "All they will have to do is sign up to a new bank and the rest will follow. All the direct debits, the standing orders, everything will be switched for you with no hassle. This is a revolution in customer choice."
    From http://www.moneysavingexpert.com/news/banking/2013/02/osborne-confirms-plans-for-quicker-current-account-switching

    He's obviously not thought this through himself, and neither have his speech writers.
    • pinkdalek
    • By pinkdalek 16th Aug 13, 6:35 PM
    • 1,283 Posts
    • 763 Thanks
    pinkdalek
    It's so good to see the negativity around this place. Something which is being introduced to make switching easier, yet it seems as per usual there a those who just focus on the negative and pick out faults. Typically trivial queries which aren't really on reflection that stressful to sort out are they?

    Really you should all work for the Daily Mail, you'd love it.
  • pqrdef
    I can't wait to hear how this issue has been resolved once the Current Account Switch Guarantee is with us.
    Originally posted by Archi Bald
    But that's the point. It won't matter if the council takes its time. If it sends a payment claim to the old account, BACS will redirect it to the new account.

    It'll also tell the council what it's done. So there'll be no point in the council saying they won't do this and they'll only do that, because their principles are being subverted anyway and there's nothing they can do about it. So they might as well just get on with updating their records.
  • pqrdef
    He's obviously not thought this through himself, and neither have his speech writers.
    Originally posted by Archi Bald
    He's wrong even in BACS-land. For instance, I've got a two-year bond where I gave my current account details at the time of opening, for them to send the proceeds to on maturity.

    So if I switch, that'll need changing, and nobody's going to change it except me. Assuming I remember. Well I know I've got a record somewhere, just got to remember where I put it. But that's just me - few people would have a record at all. And it's not online - some accounts aren't, still.

    But 13 months of redirection won't cover it, because the payment is more than 13 months in the future and obviously the data won't be used at all in the meantime.

    And then there's HMRC. Legendary for poor data quality. A third of their letters go to the wrong addess, or something like that. It's inevitable that they'll send tax refunds to bank details that are more than 13 months out of date, and there won't be anything that anybody can do about it, because they get round to things in their own time and not before.

    13 months is pathetic anyway. BACS have always reckoned that DDs should expire if not used for 13 months. But it's not that unusual for magazine publishers or insurance companies to throw in a couple of free months as an introductory offer, so the first renewal is after 14-15 months.
    • pinkdalek
    • By pinkdalek 16th Aug 13, 7:51 PM
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    • 763 Thanks
    pinkdalek
    Stop whinging people and coming up with such pathetic, and rare excuses.

    Seriously at the end of the day YOU are responsible for YOUR finances. There is only so much one bank can do, what would you like to happen exactly? Surely the payments council and the systems being set up are in place to make banks talk on the same wavelength and the service is the same across the board.

    Would it really be such hassle to amend a payment that isn't due for another 2 yrs? It's not like you would not have plenty of time to do it....sick of all the negativity on this forum.
  • pqrdef
    And then there's the other half of the payment system.

    Some issues arising with debit cards and bank switching:

    1) pending payments, with or without pre-authorisation. Some payees take their time collecting. Some payments are deliberately future-dated. Wonga will love it if you give your debit card details, take a loan and then close your account.

    Not a problem if you keep the old account and some money in it. With the new system, it's only a matter of time before we get the thread where somebody's "closed" account has been re-opened for a stray debit, and is racking up a ton of overdraft charges, and there's no way he can pay any money in, because any money he tries to send gets redirected.

    2) CPAs, as often used for subscription and insurance renewals or instalment plans. The hard part is to know what CPAs you've actually got. And then you have to figure out how to contact the payees. And contrary to Gideon you're still going to have to do all this yourself.

    3) A lot of websites will save debit card details for future reference. These will all want updating, and you'll have to do it yourself.

    4) Some merchants like to pay refunds back to the card they took the money from. Not a problem if you keep the old account, but messy if you close it.

    5) Bookies especially like to refund all returned stakes back to the card they came from, for anti-money-laundering reasons. Another reason to keep the old account.
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