The framework to move Direct Debits from one bank account to another has been around for many years as the concept of switching bank accounts is certainly not a new one. Historically, moving your current account was a little hit and miss, occasionally a direct debit wouldn't move over and you would have to contact all of the people who make payments into your current account individually to ask them to change their records.
The Payments Council introduced a new "Current Account Switching Service" (CASS) in September 2013 to help introduce more competition into the market. The service had two main distinctions from the previous way of switching accounts:
- The service has a guarantee - if anything goes wrong with the switching of the account the new bank would reimburse the customer the amount of any fees or charges as a result of the error and work with any third parties to correct the problem.
- Any debits or credits sent to the old account would be automatically redirected to the new account for a period of 13 months (now 36 months).