Direct Debit Indemnity Claims

I have unknowlingly been paying a montly direct debit to my local gym which I have not used for over a year now, and believed that a 12 month contract I had with them had ended last year (May 2006).

At the time I did cancel my DD with my Bank and left it at that - thinking that no more monies were being taken by the gym.

HOWEVER

Turns out that they set the DD back up in Jne 2006 (which I was unaware of) and have continued taking monthly payments ever since (amounting to around £500 in total).

I have contacted the gym concerned and upon calling them they said that the original contract T&C's meant that this was a 'rolling contract' which is why they set the DD's back up (without me knowing).

Admitteldy I should have spotted this sooner! I have contacted the gym today and cancelled this (along with the DD with my bank) stating that I had no knowledge this contract was still in place and had not used their services for over a year: They cancelled my contract but said that I would not be able to get my money back from them :mad:

I disputed this and was advised to contact my bank and make an "indemnity claim" however, they would not give me more detials.

Can anyone clarify what this claim is and how the process works - I have done some research and established that it falls under 'payer disputes having given authority' but have not found much.

Has anyone experienced this and are you able to offer guidance or clarify what this will involve?

MANY THANKS
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Comments

  • Crabman
    Crabman Posts: 9,943
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    You phone the bank and ask that under the terms of the direct debit guarantee, your money is returned.

    Under the rules of the Direct Debit Scheme, should any money be taken in error, then the customer's bank or building society must, on request, make an immediate refund to the customer's account. This is the Direct Debit Guarantee. This covers situations where the originator has not given the required advance notice regarding a change of amount or date. It also protects customers should an incorrect amount be debited or if a debit occurs earlier than the specified, agreed date, or in error.

    http://www.financevictims.co.uk/direct-debits/index.htm

    Your bank may try to sidestep it but be firm and quote the direct debit guarantee, ask them to check with a supervisor if need be. They'll take your side of the story i.e. details and dates of joining gym etc. and another department will then process the refund. Usually takes a couple of days to show up on the account.

    Good luck :D
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898
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    I agree with previous poster. Your bank will in fact 'debit' the gym company's bank and refund you.
  • PLease could some one give me some advice

    i have been paying a standing order since March 2006

    that was all ok until another company bought them out in sept 06 and then i was paying two standing orders - i recieved no letters from the original company stating that this company had been bought out and another had taken over

    Then i had to go through my bank statements for another reason and found that i was paying two companys for the same product i have since stopped the standing order but am trying to find out how i can go about getting the money back as it it £1000 i have spoke to both companys involved and they keep passing it to the other one i am at my whits end and i think i am within my rights to get the money they owe me as they did not have my permission to take the money out in the first place


    someone please help
  • edda
    edda Posts: 1,057
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    Vonnie

    Welcome to the site.

    I think you might get a better response if you started a new thread as standing orders are different to direct debits.

    Couple of initial questions:

    Was the standing order an open-ended one or was there a specific last payment date?
    Have you spoken to your bank about this?
  • MarkyMarkD
    MarkyMarkD Posts: 9,912
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    I absolutely agree with rolandpol.

    The original situation doesn't sound like a DD guarantee issue at all - the OP simply failed to cancel the membership agreement and the money remains due. The fact the OP didn't use the gym is completely irrelevant.

    I note that the thread is over a year old and the OP hasn't bothered to come back and explain what happened next - thanks a lot!

    Regarding the new query which has revived the thread, I suspect that vonnie is actually referring to a DD and not a standing order, as the only person who could have authorised a second standing order is vonnie him/herself.
  • New to this and hope someone can help

    I recently took out a mobile phone contract and at the time I told them I did not want the insurance cover. Nonetheless they took the insurance by direct debit and because I had insufficient funds in that account it cost me £38.00 bank charges.

    Can anyone tell me if I can claim the bank for direct debit indemnity as I am getting nowhere the phone company and the insurance company

    Thanks
  • Mikeyorks
    Mikeyorks Posts: 10,369
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    Alex0509 wrote: »
    Can anyone tell me if I can claim the bank for direct debit indemnity as I am getting nowhere the phone company and the insurance company

    Yes - if you're convinced an error has been made and the Insurance isn't in the 'small print'? But it's the DD Guarantee you claim under - the indemnity is a mechanism that happens between the Banks and the supplier. And you can only claim the value of the insurance - the consequential loss of the £38 isn't covered. But you'll be in a stronger position to ask your Bank to waive it ..... if you do get your money back under the Guarantee.

    Sensible also to run your account with a guaranteed overdraft in order something small doesn't tip you into this situation.
    If you want to test the depth of the water .........don't use both feet !
  • olly300
    olly300 Posts: 14,736
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    Alex0509 wrote: »
    New to this and hope someone can help

    I recently took out a mobile phone contract and at the time I told them I did not want the insurance cover. Nonetheless they took the insurance by direct debit and because I had insufficient funds in that account it cost me £38.00 bank charges.

    Can anyone tell me if I can claim the bank for direct debit indemnity as I am getting nowhere the phone company and the insurance company

    Thanks

    Start a new thread instead of linking your query to old threads this makes it easier for people to answer.

    BTW I sent you a PM because mobile phone companies are well know for spoiling people's credit files. If you just cancel the direct debit you can end up causing yourself much more hassle then just writing 3 letters, making one phone call and waiting a few weeks.
    I'm not cynical I'm realistic :p

    (If a link I give opens pop ups I won't know I don't use windows)
  • I agree with previous poster. Your bank will in fact 'debit' the gym company's bank and refund you.

    I agree with that actually. It is the bank fault actually , so it should refund u the money. you really deserve to get that. Hope you get the money soon
  • I have been a victim of internet fraud. I bought digital camera from eJaffa.com and paid for it through Paypal which takes the money from my bank acount by direct debit. The camera did not come. I made a claim through Paypal for a refund. Although Paypal found in my favour they could not get any money back from eJaffa so no refund! Does anyone know if the Direct Debit Guarantee in this thread would apply in my case and I could get my bank to refund my money? I have not asked them yet!
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