Alliance & Leicester’s £100 switching incentive is back: all you need to do is transfer your current account to its Premier account. Financial journalist, Jessica Bown, shows you just how simple it is to switch…

Click here to read Jessica's article

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Community

I have read the article and speak from experience of switching to A-L. My criticism is you cannot lie back and let them switch for you because things can go wrong. I won't bore you with the details but they do go wrong and when you call A-L and say please sort out this mistake by nPower they say we can't because we are not allowed to under the DP Act. No problem I said I'll authorise you - no sorry we can't. There were other problem/s - can't remember exactly now.

I saw somewhere recently being backed up in my thought that as long as you are in good standing with your old bank it makes sense to keep the account open at least as a reference if you have had it for some years - it was said that financial institutions don't like prospective customers who have only just opened a bank account.

I would venture to say that the golden rule is only to open a new bank account if it's just right for you and not simply for the £100 etc...

I also saw something that said institutions didn't like people who "churned" accounts but I can't quite remember if it had any adverse effect.

I took this advice the last time we were told about A&L paying £100 for switching. I am now having "words" with them as they say I am not eligible for the £100 due to the fact that when I switched no direct debits were included from my old bank. The advertising of this "£100 switch over" did not make this clear re Direct Debits so be aware. From Silver65

silver65:

they say I am not eligible for the £100 due to the fact that when I switched no direct debits were included from my old bank.

This is the current "Offer Page" conditions and and I believe the previous offer was "similar".

To qualify for this offer you must switch all your direct debits and pay at least £500 from a non-Alliance & Leicester account into your account within 11 weeks of account opening.

You must ask to use our Switching Service at application stage.

In my opinion even if you had no direct debits to switch but asked to use the Switching Service, zero DDs should qualify.

However if you did not use the Switching Service you would not qualify.

Hi silver65,

That's an interesting point - what exactly did they say?

The details regarding the new £100 offer state:

“£100 offer: Applicants are not eligible for this offer if they currently hold or have held in the past 3 months any Alliance & Leicester, Abbey, cahoot or Cater Allen current account. The £100 switching offer is only available on the Premier Current Account (this does not include Premier Direct, Premier 21 or Premier 50 Current Accounts). Offer is limited and is only open to customers accepted for a Premier Current Account. £100 will be paid into your new Premier Current Account within 3 months of account opening providing you switch all your direct debits to the account and have funded at least £500 from a non-Alliance & Leicester account within 11 weeks of opening the account. A letter will be sent to confirm when the switching process has completed. If you do not have any direct debits to switch you will not receive £100. You must ask to use our Switching Service at application stage.”

It's the bit in bold that's the important bit and I think you're right - it's not very clear or transparent. The only way you would see that is if you click on the 'Important Information' button at the bottom of the product page on the A&L website.

We’ll try and update our article to make this clearer for our readers.

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Cheers,
Graeme Delap, Community Editor,
graeme.delap@moneysupermarket.com

Vote for your Community Star: Community Stars 2009

silver65:

they say I am not eligible for the £100 due to the fact that when I switched no direct debits were included from my old bank.

Graeme has delved further than my reading of the "Offer Page".

Whether you use Direct Debits or not is your personal call. However if what you want is £100 surely you can find one organisation to set up a Direct Debit with (for the next £100 opportunity somewhere else)

As a suggestion, cheaper energy or avoiding credit card fees by paying the minimum payment by Direct Debit.

Hello Jalexa - As I say I was not aware that Direct Debits had to be included with the switch as this fact was not made very clear. Yes I did use A&L switching service (it took ages) and I started the proceedings within their time set to earn the £100 for switching. I actually gave all my details on line. I am still awaiting hearing from them in response to my 2nd letter (24th August) about all of this but don't hold out much hope. From Silver65

Hi Graeme, thanks for your post. I had a very "curt" reply from their customer services (Pac Autoo1) informing me that as I did not switch at least one direct debit using their Premier Switching Service within 11 weeks of opening their account I was not entitled to the promotional offer and as a result will not be receiving the £100. Obviously if this Direct Debit "thing" had been made more clearer then, of course, I would have set-up one just to qualify. I did use their switching service when applying for the Premier Current account. Thanks for pointing out about the "Important Information" button which, I must say, I cannot remember seeing. Silver65

silver65:

I am still awaiting hearing from them in response to my 2nd letter (24th August) about all of this but don't hold out much hope.

Was browsing the MS forum and surprise surprise there was an A&L ad for the offer. I clicked away and up until the actual start of the application data entry there is no link or reference to the "no DD" exclusion which as Graeme spotted is ONLY contained at the bottom of several pages of (general) T&C small print not referred to at least in the initial stages of the application.

In fact the offer reaffirms only that "all DDs" need to be switched using the switching service.

In my opinion you have a robust case for the £100 should you wish to remain with the A&L or alternatively an expectation for A&L to arrange the restoration of your previous banking arrangements.

If this had happened to me I would have absolutely no hesitation in invoking the complaints process and on deadlock or after 8 weeks whichever comes first referring the issue to the Financial Ombudsman Service. It would cost you nothing but A&L a hefty case fee regardless of the outcome. It's win/win for you because it will probably take the FOS up to a year to adjudicate, meanwhile you would at least benefit from the other account benefits until another £100 offer comes along elsewhere.

A&L would be daft not to award a £100 ex-gratia payment to avoid the £450 FOS case fee. Unfortunately I cannot say A&L are not daft.

Document the application process before A&L wise-up.

I too are having problems with A&L with regard to there payment of 100 pound for switching to there current account. I followed all of there instructins using there switching team,changing my D/debits and paying in over 500 pound since May 2009. They are telling me now that I do not qualify because cI opended my account on line and not in a Branch. I am now awaiting a reply from their customer complaints team. Although the letter they sent over 2 weeks ago has not yet been received.

lloydy7:

They are telling me now that I do not qualify because cI opended my account on line and not in a Branch

I don't know what the arrangement was when you applied but the current offer definately allows online applications.

If you are not satisfied with the response when you finally get it take the issue to the Financial Ombudsman Service. You can do that 8 weeks after first raising the issue. It will cost you nothing but A&L a hefty case fee well in excess of the £100 you claim. They would be silly not to settle, unfortunately I cannot say A&L are not silly.

Good luck.