Direct Debit Indemnity Claims

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Comments

  • ShelfStacker_3
    ShelfStacker_3 Posts: 2,180 Forumite
    No. The Direct Debit indemnity scheme doesn't cover the purchase of items, only bank or originator error.
  • andyhullock
    andyhullock Posts: 1 Newbie
    I have been paying for an orange mobile phone contract for10 months when i shouldn't have been. I was on an 18 month contract with Orange, i was due an upgrade in November last year as i had been on contract with them for 15 months.

    The guy that served me in the shop said that he could switch me over to T-mobile & get a better phone for cheaper & get more minutes etc plus a free nintendo wii (which i thought was great as i was going to purchase a wii anyway). He did inform me that Orange would still take payment for the remaining 3 months of my contract but that would be it & the only charge being debited from my account would be the T-mobile one.

    I have only just realised that Orange have still been taking payment of £40 from my bank for 10 months, although i have never used 1 minute or 1 text of the contract since November 2008. It has been that long since i used the phone i can't even remember my number. I admit i should have realised this sooner but i only checked what DD where coming out last month, to which i then relaised Orange were still taking payment.

    This has really annoyed me becuase i am effectively paying Orange for nothing (£400 in fact).

    Is there anyway i can claim a DD indemnity?

    Any Help would be greatly appreciated.

    Cheers,
    Andy
  • dazza.mk
    dazza.mk Posts: 1,927 Forumite
    First Anniversary First Post Combo Breaker
    andyhullock wrote: »
    I have been paying for an orange mobile phone contract for10 months when i shouldn't have been. I was on an 18 month contract with Orange, i was due an upgrade in November last year as i had been on contract with them for 15 months.

    The guy that served me in the shop said that he could switch me over to T-mobile & get a better phone for cheaper & get more minutes etc plus a free nintendo wii (which i thought was great as i was going to purchase a wii anyway). He did inform me that Orange would still take payment for the remaining 3 months of my contract but that would be it & the only charge being debited from my account would be the T-mobile one.

    I have only just realised that Orange have still been taking payment of £40 from my bank for 10 months, although i have never used 1 minute or 1 text of the contract since November 2008. It has been that long since i used the phone i can't even remember my number. I admit i should have realised this sooner but i only checked what DD where coming out last month, to which i then relaised Orange were still taking payment.

    This has really annoyed me becuase i am effectively paying Orange for nothing (£400 in fact).

    Is there anyway i can claim a DD indemnity?

    Any Help would be greatly appreciated.

    Cheers,
    Andy

    Did you ever actually cancel your Orange contract? - As a third party wouldn't be able to cancel the contract on your behalf (unless possibly if you transferred the number using a PAC code you'd requested previously from Ornage.

    And if you haven't cencelled the contract then no mistake was made.
  • dunstonh
    dunstonh Posts: 116,309 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Is there anyway i can claim a DD indemnity?

    If you cancelled it at the bank then the bank will have a record of the cancellation and you will be able to claim under the scheme.

    If you didnt cancel it then and forgot then the scheme cannot be used.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • MarkyMarkD
    MarkyMarkD Posts: 9,912 Forumite
    First Post First Anniversary Combo Breaker
    ... because the provider haven't done anything wrong. They've provided the service, whether or not you've opted to actually use it.
  • formerbanker
    formerbanker Posts: 1 Newbie
    rolandpol wrote: »
    I say that you should go to your citizens advice bureau and try to get them to help.
    Because technically, no error was made. When you sign up to gyms and other similar places they have a 1 year contract and if you dont want to continue for a 2nd year you must contact them before the end of the 1st year

    A bit like the experian deal, its free, but if you dont want the 2nd month you must tell them before hand, otherwise you'll be charged for it.

    I have a similar agreement with my server & host, I have until Dec 25th to decide if I want to cancel, if I dont cancel, its goes on for another year and my card is charged.

    So technically, it isnt a bank error
    It technically isnt an error on the side of the gym. They gave you a years notice and the ammounts are likely to be correct.
    You'll have trouble proving that its an error.


    Sorry, but this advice is incorrect. (I used to be involved in processing direct debit claims in the head office of one of the major clearing banks.)

    In the original post, it was stated that the bank had been asked to cancel the direct debit. The bank should then have notified the gym that the DD was cancelled. Under the rules of the Direct Debit scheme, the gym should then have stopped claiming direct debits immediately. The customer is absolutely entitled to a refund of any DDs claimed after the cancellation under the DD guarantee.

    The terms of the agreement between the customer and the gym may mean that the gym is still owed money, but this does not entitle them to carry on claiming DDs after the customer has cancelled the mandate.

    In the event that the bank made a mistake and forgot to notify the gym of the cancellation, then the bank is liable and should refund the customer themselves.

    The Direct Debit scheme rules are very clear on all these points.

    I have only just stumbled across this and hope this reply is of some use.
  • hullkrfan
    hullkrfan Posts: 1 Newbie
    masey999 wrote: »
    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

    Think you will find that this goes on a lot. Many of us lose track of our payments. I suppose it is time for us all to tighten-up. Should be more honesty from the end-users though
  • joanne-8543
    joanne-8543 Posts: 1 Newbie
    my loan company told me my dierct debit wasnt due out until may because there wasnt time to set it back up after i had cancelled it earlier because i coulnt make payment .any way they said pay aprils on phone did that then day after they took dd out left me 300 pounds overdrawn bank said nothing they can do help.
  • agsnu
    agsnu Posts: 1,457 Forumite
    joanne-8543 wrote: »
    my loan company told me my dierct debit wasnt due out until may because there wasnt time to set it back up after i had cancelled it earlier because i coulnt make payment .any way they said pay aprils on phone did that then day after they took dd out left me 300 pounds overdrawn bank said nothing they can do help.

    Your bank is wrong. See http://www.financial-ombudsman.org.uk/publications/ombudsman-news/27/27-directdebit-guarantee.htm
  • MarkyMarkD
    MarkyMarkD Posts: 9,912 Forumite
    First Post First Anniversary Combo Breaker
    The bank is wrong. Send them a written complaint saying that this was an unauthorised withdrawal and that under the DD guarantee they are required to refund it, and any related overdraft charges.
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