Direct debit guarantee advice

bungler · 10 Mar 2006 at 22:20

Without going into too much detail I left a company late 2004. I had been paying these by direct debit. When I cancelled I did this through the company, not the bank. All was well until August last year when they decided to reopen my account and bill me even though I was not at that address anymore and did not request this.

I called about this and told them to stop the payment and they said they would but they didn't and the same happened the next month. I went to the bank and stopped them from taking any more money out. They keep telling me they will send the money they took back but have not.

As I am fed up with this I went to the bank to get the money back using the direct debit guarantee. I read up on this before I went and saw this:

The direct debit guarantee applies to all banks and building societies taking part in the direct debit scheme. It says that:

If the originator or the bank/building society makes an error, the customer is guaranteed a full and immediate refund of the amount paid.

As there had been an error I expected to be given a refund there and then but the bank said as they had not made an error they had to contact the company (the originator) to see what they say. I wasn't happy with this as I don't have any confidence in this company to approve the refund and wanted the money back there and then and if they had a problem with that to come back to me (as they said they would the last time I called them but they didn't).

Can anyone who knows about this confirm if I should have been given an immediate refund or not. If I should have been I will be going back tomorrow and will not be happy.

Thanks

Berserker · 10 Mar 2006 at 22:31

Go to your bank branch and claim the money back.

http://www.bacs.co.uk/BPSL/directdebit/generalpublic/yourrights/

Brennan · 10 Mar 2006 at 22:32

It sounds like you have been fobbed off to be honest. In my experiences, they take a lot effort for the bank. The bank has to wait for the funds to come back from originator. They should be settled within 14 working days however they often take months to be refunded. The banks don't like to be in debit.

It doesn't matter if your bank didn't make the error, they are the only ones who can raise the claim. If they still refuse, say you will go to the FSA.

JonC · 10 Mar 2006 at 22:33

under the terms of the Direct Debit guarentee (as I understand it), you are untitled to any money paid out of your account by direct debit. Your bank should not need to "contact the company and see what they say", they are obliged to comply.

The company in question has to then get payment by another method.

Jon

bungler · 10 Mar 2006 at 22:33

I did today. I even quoted what I said in the op, but they wouldn't do it. I guess I'll be going back tomorrow morning. I would normally wait until they got back to the bank with a reply but I could really do with this money (over £100) now.

Thanks for the replies.

Berserker · 10 Mar 2006 at 22:38

If you have to, ask to speak to someone more senior (assumg your branch has such people).

Burnsy2023 · 10 Mar 2006 at 22:38

bungler said:
I did today. I even quoted what I said in the op, but they wouldn't do it. I guess I'll be going back tomorrow morning. I would normally wait until they got back to the bank with a reply but I could really do with this money (over £100) now.

Thanks for the replies.

Ask to talk to the manager, while your there they should have a copy of the DD guarantee, read it and highlight the section on immediate refunds. If they still fob you off, make a scene.

What bank are you with BTW?

Burnsy

bungler · 10 Mar 2006 at 22:45

Lloyds TSB. I let them know I wasn't happy but didn't go too far as I wasn't 100% sure if I was right. I looked online briefly before I went but when they said because it wasn't their fault they couldn't do it I thought I might have made a mistake.

When I left I decided to check here and go back tomorrow

ste_bla · 10 Mar 2006 at 23:24

If the DD is without consent its illegal and therefore you would (dont let the bank fob you off) get an instant refund, no ifs buts or maybes

Pretty sure thats right

Oracle · 10 Mar 2006 at 23:24

The Bank havent made an error! :confused:

It clearly states in the DD gurantee that:-

If the originator or the bank/building society makes an error, the customer is guaranteed a full and immediate refund of the amount paid

Having worked for HSBC for quite a few years, this goes quite simply as follows. If you had told the bank to cancel the DD and payment still went out, then the bank would be at fault. You didnt do this, so no fault on the banks part. You told the company to cancel it, and they didnt. You should seek the money back from the company, not through the bank, although tbh, good bank staff will contact the company on your behalf (or at least give you the an exact name and address to contact, sometimes even a phone number) to put the cat amongst the pidgeons so to speak.

Companies such as NTL even set duplicate DDs up on customers bank accounts, so that if you cancel one with the bank, they just start to take money through the other DD....Always regularly ask to see a copy of your DDs and SOs so you know exactly what is going out of your account....

HTH

ste_bla · 10 Mar 2006 at 23:26

From that link

If any payment is made in error, you should contact your bank or building society who are responsible for giving you a full and immediate refund - even if the original error was made by the organisation collecting the payment.

Surely its an error seeing he owes them (orginal org.) nowt?

Oracle · 10 Mar 2006 at 23:28

Unfortunately it just doesnt always work like this in real life. The bank (if they are going to persue this for you) are allowed 7 working days to rectify the situation.

See correct DDs have an expiry date (for instance a credit agreement that ends 07/06). This expiry date is encoded into the DD BACS system so that payment will stop on that date (the last one being taken on this day). Companies who fail to enter a valid date are at fault, however when the DD document arrives for scanning at the Banks DSC (District Service Centre) it is not always legible (especially if its hand written) and either does not get input, or gets input incorrectly.

So to know exactly whose fault it is is difficult. The bank are allowed 7 days to request an original copy of the Credit Agreement (or signed DD form) to estabish the expiry date. If this is confirmed as the correct date by the company then any overpayments will be refunded....

Yes, it says that payment should be refunded immediately, but trust me, 7 days for a bank....thats pretty immediate!!!