Direct Debits and the Current account switch service

personal
sole-trader
cass
platform
joint
business

#41

Hey @dave

Since October/November time the CASS scheme brought into effect a new process whereby full switches follow a new procedure; they suppress the messages banks send to merchants advising of the change of your bank details. This is in an effort to minimise issues where merchants don’t act on bank advices.

The message suppression process means that the merchant isn’t aware of the switch until they send their next DD collection to you/your old bank; because they are unaware of your switch, the collection goes to your old bank and CASS redirect it to Starling/your new bank. After the redirection, they un-suppress the message and send it to the merchant, who then has the maximum amount of time before the next DD is due to update your details they hold.

The idea behind this new process is redirection is proven to work as expected, whereas relying on merchants to action bank advices is not, and often either doesn’t happen in time for your next DD, or doesn’t happen at all.

The DD’s will then change to live in the app

You are still covered under the CASS switch guarantee if the DD’s do not go out as planned.


#42

Thanks for the reply. One of my DD’s (my mortgage) says “New”, rather than “Transfer pending” though? Any reason why this wouldn’t be the same as all the others if my mortgage provider hasn’t yet been notified?


#43

Is the DD due anytime soon?


#44

Hi @LoganAllan

As you’re monitoring the thread, any comment on your CS team blaming the customer for DD failures?


#45

I’ll have to catch up on that quickly. Seems this happened when I was away I see it started a while ago . Give me a few minutes so I can see what was said above and in the tickets


#46

So it seems it’s being handled via the app and that we have been in touch yesterday with news. I’m afraid I cannot discuss it on the community as it all relates to your personal account information. As soon as we have an update regarding the DD then we will be in touch via the app again


#47

You won’t have an update, @LoganAllan , as my mortgage lender denies having had any conversation with Starling.

I will, obviously, be moving my current account to another bank as, rather than admit that Starling hasn’t provided proper details to other banks, it tried to blame me for filling out the mandate incorrectly. Utterly shoddy treatment.


#48

My full switch from my old bank to Starling has happened and was successful. Well, it wasn’t like either bank has had to do a great deal of work because I carried out most of the tedious work myself over the last few weeks, cancelling/switching direct debits and transferring almost all of the balance in my old account.

I did however contact Starling CS and ask the question whether or not either bank had contacted my income provider to inform them of the switch. Eventually, after a rather long wait, so long in fact I had to close the chat down because I got fed up of waiting, I was eventually informed by Starling CS that no record could be found of either bank informing my income provider, so I politely stated I would do it myself and Starling CS were in agreement that it was the best course of action. To be honest, I’m disappointed that CASS appears not to have picked this up. Moreso, I’m no wiser as to whose responsibility it is exactly to inform your payees, employer/pension provider etc; the bank you’re switching from, or the bank you’re switching to?

Today I did inform my secondary income provider of a change of bank details and they informed me that neither bank had made contact with them. They also informed me that this is becoming an increasing problem for them, with lists of current account switches from various banks arriving late resulting in missed payments etc. My phone call effectively made their job easier. Basically, it’s a good job I checked because CASS might have failed me on this part of the switch.

Anyway, hopefully, my income will hit my Starling account on time on the usual day. My advice? sort out the really important stuff yourself.


#49

No one is informed when you switch accounts, that’s not part of the service. Any payments sent to your old account are automatically redirected though.


#50

Pulled this from the USwitch website:

For added protection in the period of 36 months after the switch, your old current account provider will be obliged to arrange for any payments accidentally made to them to be automatically redirected to the new account.

Furthermore, the sender of the incorrect payment will be contacted and provided with your new account details.

So I would imagine that no one is automatically informed, unless they try to pay you. I’ve witnessed this myself (being the sender), where I’ve gone to update the details I hold on my account, to find they’ve already been updated. So I assume the bank would receive the notice and update it on my behalf.


#51

Starling have already answered how switches now work.


#52

The Bacs scheme does have a method of notifying service users of any changes to a Bacs Direct Credit payment, providing them with the information needed to help maintain their payments database.

AWACS (Advice of Wrong Account for Automated Credits Service).

This is used, for example;

  • When the incorrect beneficiary account details are supplied with the payment and the receiving bank is able to identify the correct account, or
  • When an account has been transferred to a new bank or building society using the Current Account Switch Service or Bulk Payment Redirection Service.

This does require at least 1 attempt at the old bank first and it also requires you to be paid via Bacs; nothing else will work.

But, as you say, no informing beforehand.


#53

No. It came out on the 1st. So why would it be displayed as “New” if they haven’t been informed about me changing banks yet?


#54

I’m also now getting “Transfer pending” DD’s I’d deleted re-appearing in the list as “New”. This really isn’t filling me with much confidence tbh.


#55

I’ve put of switching any DD’s until this is settled/sorted… but looks like the issues are no further forward and people are still struggling, loathe to do so if I’m honest which is a shame.


#56

To be honest, I wish I’d done it all myself, and not relied on CASS. The only time I’d ever use CASS again is if there’s a financial incentive to do so.


#57

I done a full switch from traditional bank to another a couple times and has worked. So CASS can work.

Hopefully someone from Starling can confirm your account is ok soon though. While there is some sort of CASS gurantee that doesn’t help calm any potential nerves. :confused:


#58

I’ll start a ticket and let you know via the app :slightly_smiling_face: