Changes: payments: bank or building society account change / payment frequency (Info)
Changes to the details of a bank or building society account can be accepted from
- the customer or their partner
- the bank or building society
- the customer’s personal acting body (but not their agent).
Bank or building society accounts can be changed up to 30 days in advance.
Customer reports the change
If the customer reports a change to their bank details you must check for Compliance activity or suspicious activity.
Note: A change in legislation in Jan 2011 allows TCO the discretion not to allow a change under suspicious circumstances but this is not stopping all changes. If the customer has made one change but the customer claims financial hardship the change will be allowed however the customer is informed that we are unlikely to allow a further change. If a further change is required by the customer they will be advised to write in.
If there is no Compliance activity or suspicious activity he change can be made. If any information is missing, you must contact the customer to obtain any missing information.
Bank or building society reports the change
These types of changes are notified by a bank or building society when a customer opens a new bank account. They should have signed authority from the customer.
If any information is missing, you must contact the customer to provide the missing information. The change can then be made.
Contact Centre referral
If you are dealing with a bank change referred to you by a Contact Centre you don’t need to confirm the details with the customer.
Types of bank changes
Customers may report a change to an existing bank or building society account.
If the customer does not have a new bank or building society account for their tax credits to be paid into, they will need to open one.
Any bank or building society account that will accept a BACS payment is acceptable.
Whilst the Tax Credit Office will allow tax credits payments to be made into third party or appointee bank accounts, some banks require the customer to be the account holder before accepting payments. In these circumstances, it will be necessary for the customer to provide acceptable new bank account details.
If the bank doesn’t require the customer to be the account holder, business accounts, children’s accounts and relative’s accounts are acceptable. If payments aren’t made into an account in the customer’s or partner’s name and there are any other changes or activity on the claim that leads you to think that the change is suspicious, refer the change to Compliance.
There is an Action Guide for this subject, select TCM0046040 to access it