So a full update: I’ve been reading the advice to companies using direct debits (https://www.bacs.co.uk/Resources/Pages/FAQs.aspx).
Essentially it seems to work like this:
- You initiate a switch with the bank
- There is a thing called ADDACS (Automated Direct Debit Amendment and Cancellation Service) which basically lets banks send all your direct debit holders a pre-defined message with changes to your bank details.
- The onus is on the company taking the money (direct debit holder) to change your sort code.
Now what happens next depends how long til the next payment:
a) If they have already prepared their big batch of payment requests for the next payment round, they are advised to leave it with your old account and update the details on their system to be used next time.
b) If not they are advised to update it so the next round takes out of your new account.
If we get to option a and they attempt to take it from your newly closed account, a thing called the central redirection service will come into play and redirect to take payment from your new bank account.
Soooo I’m guessing that if they can’t do the update they will contact you and leave the bank details as they were until they have resolved their discussions with you, in the mean time instead of being redirected on their end the central redirection service will take it from your monzo account anyway with the request being forwarded from your old bank.
In any case you’d be protected by the CASS and direct debit guarantee
Further Update About ADDACS
According to https://www.bacs.co.uk/services/bacsschemes/directdebit/services/pages/addacs.aspx
"It is important however that you act on the advices contained in the reports in a timely manner. This means that you will remain compliant in accordance with the Direct Debit Scheme Rules" and “Action on the information contained in ADDACS advices must be taken within 3 working days of the advice being made available”
This to me would definitely seem to suggest that it is very much their problem and not yours if they can’t act on one of these requests and may be in breach of scheme rules. If they can’t act on the instruction to update your account within three days, I suspect excuses about monzo not being a proper bank etc won’t fly if theyve not updated their sort code repository.