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Challenger Bank N26 closing UK accounts on 15th April 2020

Challenger Bank N26 UK Closure Guide

It has recently been reported that the Challenger Bank ‘N26’ will be closing to UK customers on 15th April 2020.

This will affect approximately 200,000 customers and with the date just two months away we’ve wanted to give you, a Direct Debit Service User, a guide to how you can safeguard your payments.

1. Review

Look at your active Direct Debits and see if you hold any records with a sort code 04-00-26. If you have none, there’s nothing else you need to do!

2. Monitor

If you have a number of payers that are actively paying from their N26 bank account, keep an eye on these accounts to see if they switch to another bank using the Current Account Switch Service (CASS).

3. Communicate

Be pro-active and contact those payers now, or you can get in touch nearer the time to see if the number of payers paying via Direct Debit to you using their N26 is reduced.

Either way, it is important that you tell your customer teams, so they know how to deal with any questions or queries that may be related to this issue.

The number of N26 accounts in the UK is very small, so the impact to you should be minimal, but it is always good to be prepared and mitigate any financial impact sooner rather than later.

What is Rapidata doing?

We have reviewed all our Direct Debit submissions and our Customer Success Managers are speaking with a small number of our clients that are impacted by the closure, so they are aware of those payers who are affected.

We’re providing support to our clients, so they can decide on their approach and understand the financial implications if the N26 Direct Debits are not switched to another account.