Switching not always made easier

Banks are exposing customers to fraud by failing to ensure their old current accounts have been closed once they have switched account.

Just 23 per cent of current account providers contact a customer’s existing bank or building society to have their account 
shut down after they have made a switch, according to research by Defaqto.

It also found that fewer than three in ten current account providers will match a potential new customer’s existing overdraft level.

Four in ten providers refuse to send customers details of new direct debits and standing orders set up on their behalf, while a quarter say they won’t refund charges incurred during the switching process.

The research was published ahead of rules taking effect in September forcing banks to complete switches within seven working days, down from the current 18-day average.