What happens to Direct Debits if the bank goes under?

[MimiJane]

I have a current account with the Co-op and am seriously thinking of switching banks soon for obvious reasons! All my DD's and SO's come out of this account and I'm wondering what would happen is I remain with them and they go belly-up. What would happen to all the DD's/SO's associated with the account? Would I have to manually sort it myself, or would I have the time/chance to use a switching service to another bank/building society?

 

I don't have a lot of money in the account and know I'd be covered for this.

 

Any advice welcome.

[banked]

The government will not let a UK bank go under so no worries.

[fkofilee]

You are covered under the Financial Services compensation Scheme. Read about it and that'll give you all you need to know.

[MimiJane]

Thanks both, though I've still no idea of the answer to my original question and can find nothing re. this by reading about the Financial Services Compensation Scheme. I know I'm covered up to £85k, but don't know what would happen to the DD's and SO's in the event of the bank going under.

[BRIGADIER2JCS]

The transfer of all DDS/SOs and current accounts etc., is now quicker and simpler than before.

[MimiJane]

I know about the new 7-day switching service to a new bank account, but don't know what would happen if I stayed with the co-op and it went under.

[Klandestine]

There isn't really an answer to your question and it depends on what you mean by "going under".

 

If it gets to the point where bank accounts are not operational then payments (including DDs & SOs) cannot be made.

 

It is easy enough to switch over direct debits yourself by advising the companies concerned of your bank details.