Switching Business Current Account with a BBL
Discussion
TL;DR version: Trying to switch to Starling usng the Current Account Switching Service all banks provide. Virgin Money says no because of Bounceback Loan repayments. British Business Bank website and otehr bank websites disagree with Virgin's policy. Can anyone help?
Detailed version:
Virgin Money is blocking my switch to Starling saying that because BounceBack Loan repayments come out of my current account I can't do a full switch.
But the CASS (Current Account Switching Service) says ALL direct debits, standing orders etc etc will be replicated and other bank websites (HSBC, Barclays etc) say that BounceBack Loan isn't an issue. Can't switch the BBL itself, but as long as repayments come from the new account provider then not an issue.
Virgin Money says you have to have a "feeder account" (call centre terminology) and their website says you have to have at least a "fee free service account" to make payments to the BBL from, you can't pay off loan amounts by any other method.
So I asked Virgin to open a "fee free service account for me" to get around computer says no on the switch. But Virgin said no. The Fee Free Service Account is only available if you don't have a current account. I can't open one until Business Current Account is closed. I can't close it until switching process goes through and that process automatically closes it anyway.
Other idea I had was to cancel the Direct Debit payment in the Virgin App and manually set it up in Starling, but the Virgin App and webportal doesn't list the BBL repayments under Direct Debits, Standing Orders or 'Other' scheduled payments.
Hence I called Virgin again to ask simply to change the bank account I paid the BBL with (didn't give any backstory about switching), but they said I couldn't change it.
I've raised a complaint reference with the call centre and apparently I'll get a call back within 3 days. So in advance of that call I wanted to be armed with any other information the PH gurus can give me.
After raising the complaint I thought I would test the external loan repayments and made a £1 payment from my personal Barclays current account to the BBL sort code and account number (payee check on Barclays found a match) and it immediately reduced the balance by £1, so Virgin are telling porkies when they say it can only be reduced with payments from a Virgin Fee Free account or a Virgin Current Account. I'll drop that one on the complaints team when they call.
Detailed version:
Virgin Money is blocking my switch to Starling saying that because BounceBack Loan repayments come out of my current account I can't do a full switch.
But the CASS (Current Account Switching Service) says ALL direct debits, standing orders etc etc will be replicated and other bank websites (HSBC, Barclays etc) say that BounceBack Loan isn't an issue. Can't switch the BBL itself, but as long as repayments come from the new account provider then not an issue.
Virgin Money says you have to have a "feeder account" (call centre terminology) and their website says you have to have at least a "fee free service account" to make payments to the BBL from, you can't pay off loan amounts by any other method.
So I asked Virgin to open a "fee free service account for me" to get around computer says no on the switch. But Virgin said no. The Fee Free Service Account is only available if you don't have a current account. I can't open one until Business Current Account is closed. I can't close it until switching process goes through and that process automatically closes it anyway.
Other idea I had was to cancel the Direct Debit payment in the Virgin App and manually set it up in Starling, but the Virgin App and webportal doesn't list the BBL repayments under Direct Debits, Standing Orders or 'Other' scheduled payments.
Hence I called Virgin again to ask simply to change the bank account I paid the BBL with (didn't give any backstory about switching), but they said I couldn't change it.
I've raised a complaint reference with the call centre and apparently I'll get a call back within 3 days. So in advance of that call I wanted to be armed with any other information the PH gurus can give me.
After raising the complaint I thought I would test the external loan repayments and made a £1 payment from my personal Barclays current account to the BBL sort code and account number (payee check on Barclays found a match) and it immediately reduced the balance by £1, so Virgin are telling porkies when they say it can only be reduced with payments from a Virgin Fee Free account or a Virgin Current Account. I'll drop that one on the complaints team when they call.
Edited by Mr Overheads on Tuesday 29th October 09:28
When the monopolies people told NatWest to reduce the number business accounts they had, I moved to Clydesdale (who became Virgin) and NatWest told me I'd need to keep a 'service account' for the bounceback payments.
Account got moved, loan remains with NatWest, no extra account and the direct debit is from the new bank - was never mentioned again (although this was a largely automated process for a tiny business).
Account got moved, loan remains with NatWest, no extra account and the direct debit is from the new bank - was never mentioned again (although this was a largely automated process for a tiny business).
22 in April 2021 on the NatWest thread said:
I'm in the system with Clydesdale (who have morphed into Virgin money along the way).
Also have a small bounceback loan with NatWest and some suggestion of needing a 'service' account to pay this (although communications have been sparse).
Teeny ltd company with account fees of ~£5 a month with Nat West, so should cover those well into retirement!
Also have a small bounceback loan with NatWest and some suggestion of needing a 'service' account to pay this (although communications have been sparse).
Teeny ltd company with account fees of ~£5 a month with Nat West, so should cover those well into retirement!
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