Warning. Cancellation of credit card when switching from NIB.

DMcL1971

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Just a warning for anyone who has deceided to switch their current account away from NIB after their introduction of account charges. Your credit card will be cancelled in the process.

I had an NIB Easy current account. When taking out this account it came with a Mastercard as part of the account. Their other current account packages came with other types of credit cards. When NIB announced the introduction of bank charges, I decided to move to Ulster Bank. I decided I would leave the Mastercard with NIB though. I rang their helpdesk on four seperate occasions to make sure that the Mastercard would be unaffected by the closure of the current account. On all occasions I was told there would be no problem, the Mastercard would simply become a standalone credit card and I would still be able to view it using online banking and the mobile app.

However, when the switch actually completed last Thursday, my credit card was cancelled. I contacted the branch and they did not know why this had happened, after several phone calls they found out that, because the card had been issued as part of a current account package, the card was automatically cancelled when the current account ceased. Apparently this was news to everyone in the branch except the manager.

So beware, if you are switching you current account only from an NIB package, your credit card will die with the account despite what NIB might tell you.
 
The only standalone credit card offered by NIB is Visa. Pity they didn't move you onto that before the move.

Look at AIB Visa Platinum - thats a cash-back rewards card.
 
A further update. Seeing as how NIB cancelled my credit card I went and got one with UB instead. I spoke to NIB and oficially sent them a letter confirming that I wished the CC to stay cancelled and that I did not want a new card or account from them. I cleared the outstanding balance including the stamp duty for the upcoming year, which they applied at the time of cancellation. They confirmed everything and say they have issued a letter of closure to me.

Well guess what happened, they withdrew a credit card payment from my new account today even though the card balance was cleared last week.

I intend to arrive on the branch doorstep on Monday morning and speak to the branch manager to voice my displeasure.

Even if UB do introduce bank charges at some stage and I choose to move away from them, it certainly won't be back to NIB. Their service went from excellent to downright awful very rapidy in the last year or so.
 
A few questions:
How long does it take to switch current account from NIB to Ulster?
I am thinking about switching too, it is only 2 weeks left.
What would be the "procedure" - should I open Ulster account first and then close NIB one or it is done in parallel?
Which of the 2 current accounts did you choose (Step or Standard one)?
 
I spoke with my old bank manager from NIB today. Apparently the reason the credit cards from the current account packages are being ceased is as follows.

The Mastercards (Standard, Gold and Platinum) which were offered with the current account packages (Easy, Easy Plus and Prestige) had special lower interest rates than normal Mastercards, as they were issued as part of a package deal. Once the package is closed the Mastercard needs to revert back to the normal interest rate. The card cannot change rate during it's life so they have to cancel the card and issue a new Mastercard at the normal (non-package) rate.

If you have a Visa credit card through NIB it should not be affected as it was a stand alone product.
 
Hi DMcL,

I made an appointment with Ulster for Friday. I’ll leave the old account open for at least another month as you have suggested.
I am also disappointed with NIB’s customer service and a few people I know complained about them.
I might switch Visa card at some point too.
Thank you so much for all advice.
 
Recommend that post 5 be made a key post. An absolutely excellent account of the pitfalls of switching by DMCL1971.

It really shows how one is more likely to divorce than switch bank accounts. This so called system of 'switching' by the banks is plainly not working. I'm sure this is deliberate policy of the banks.

DMCL, in the interest of the rest of us it would be nice if you could take a case to the ombudsman for mal administration and you may get compensation and help to make banks clean up their act. Yet again abysmal customer service by the banks. Shame on them.
 
Hi Bronte

Good suggestion. Done now.

I don't agree that she should go to the Ombudsman. As she said herself:

I have switched accounts three times in the last five years and so far it has never gone according to plan. The reason is that there is a great deal of manual work undertaken by both banks and all communication between those banks and also with your DD originators is done by post, which adds extra delays.

Banking is a complex business. There are thousands of transactions. Mistakes are made.

Brendan
 
I agree Brenadan, there are too many parties to blame. UB will say NIB delayed things. NIB will say it was UB. Both will blame the postal service and the DD originators will forget to update your details and say they never got any letter.

In relation to the issue of NIB attempting to take a DD payment even though the balance was cleared and the card ceased. The bank manager explained that a DD is taken based on the last CC bill produced. This DD amount will be taken regardless of what happens during the next billing period. So, it doesn't matter if you pay off the whole bill manually, max out the card, overdraw it, change your DD details or cease the card the DD will still be taken for the amount on the last bill, regardless. In my case the DD was taken, NIB then realised there is no CC existing to make the payment to and the DD amount was returned to my UB account today.
 
And finally (hopefully). Account switching is particularly slow at the moment. My UB bank manager informs me that they are snowed under with the number of new customers they have received over the last two months. There are a hell of a lot of new accounts to be opened and the switching team is not big enough to hanlde the vloume of new business. They are just chipping away at the pile as fast as they can. Also, the NIB bank manager said they have the same problem, they have had to draft staff in from other departments to handle the number of customers leaving. There are a hell of a lot of letters to be sent to a lot of DD originators.
 
I've recently returned my chequebook and instructed NIB to furnish schedules of all my DDs and SOs to my new bank (but not to close the Freebank account, until I've resolved my dispute with them about the requirement to keep it open for the life of my Tracker mortgage). It sounds like I should probably not assume that this will be done promptly or efficiently and should write to the various payees myself to advise them of the new account details. Thanks for the update, DMcL1971.
 
I didn't trust the switching mechanisms when changing from BoI to AIB last year. Yeah, I know bad timing with AIB introducing fees and all that.

I opened my new AIB account and gradually moved the smaller DDs & SOs to it, while funding it manually from the BoI account. Once it got to the stage that there were only a few automated transactions going through BoI, I moved my salary payment to AIB, closed out the last of the BoI automated bits and closed the BoI account.

z
 
I don't agree that she should go to the Ombudsman. As she said herself:



Banking is a complex business. There are thousands of transactions. Mistakes are made.

Totally don't agree with this. So what if it's complex. Banks have made it so, for their own benefit. The whole point of the switching mechanism and the reason it was brought in was because people were afraid to change banks leading to the banks treating customers like pawns. Meaning people are prisoners of banks and their shoddy practices.

Just this thread alone and DMCL's experiences sends out the message that is an absolute nightmare to switch. I would have thought this is exactly what the ombudman or bank regulator should be insisting on working properly. In no other walk of live do we as customers stick with such an abysmal service.
 
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