Direct Debit payments continued after I cancelled gym membership

Shiela · 26 October 2016 at 7:18AM

In November last year I wrote to my gym giving notice of cancellation for myself and my daughter-in-law. The DDs came from my account. Rather stupidly I just assumed that the gym would act upon my instruction. However, on checking outgoings in August I found the payments were still going out. I notified my bank and cancelled the DDs.

The gym refuse to accept that i cancelled. Another family memember cancelled at the same time (we joined a new gym) and hand delivered her cancellation and cancelled the direct debit with her bank. My bank said I'm not covered by the DD guarantee scheme. The gym took nearly a years extra payments from me and want an extra £70 for cancellation. Do I really have no rights to recover the extra money they took?

cono1717 · 26 October 2016 at 9:08AM

Did you ever receive a confirmation that the membership was cancelled from the gym? If so that's pretty clear. Just give that to your bank.

unholyangel · 26 October 2016 at 1:51PM

Do you have any way of proving you cancelled last year? A copy of the letter you sent them perhaps?

If not you could still try bluffing them in the form of a letter before action - that you'll take legal action for the return of your money as you shouldn't be out of pocket due to negligence of their staff. Perhaps point out that if you had not written to them and expected them to stop taking payment, why would you have started a new membership elsewhere and not cancelled their direct debit.

You could also complain to the financial ombudsman about your banks response to the DD guarantee. Although if you don't have proof you cancelled, I'm not sure what your chances would be.

DoaM · 26 October 2016 at 2:32PM

I thought reversal of DD payments when a challenge/complaint is made was an absolute right? That the bank was obliged to follow their customer's instruction?

The other party would still be able to make a claim against the person for the alleged debt. But the bank can't reject a DD guarantee claim - can they?

unholyangel · 26 October 2016 at 3:38PM

DoaM wrote: »

I thought reversal of DD payments when a challenge/complaint is made was an absolute right? That the bank was obliged to follow their customer's instruction?

The other party would still be able to make a claim against the person for the alleged debt. But the bank can't reject a DD guarantee claim - can they?

Afaik, its where there has been a mistake in the payment taken in some manner - ie wrong date, wrong amount etc rather than a resolution device when contracts go wrong. Technically the supplier has made a mistake but the problem is they're claiming they haven't.

If the OP can show she cancelled then that shows the DD was incorrectly taken. Or if the price increased/changed, OP should at least be able to reclaim those payments unless the gym can prove they gave her notice of the new amount.

Check 82/07:
http://www.financial-ombudsman.org.uk/publications/ombudsman-news/82/82-automatic-payments.htm

Not the same as OP's but just showing that it is supposed to cover payments wrongly made and that the email that customer had sent the gym was enough to prove they had been taken wrongly.

Undervalued · 26 October 2016 at 5:33PM

DoaM wrote: »

I thought reversal of DD payments when a challenge/complaint is made was an absolute right? That the bank was obliged to follow their customer's instruction?

The other party would still be able to make a claim against the person for the alleged debt. But the bank can't reject a DD guarantee claim - can they?

Whether is was an "absolute right" or not I don't know but it certainly used to be treated more or less like that.

I was treasurer of a large organisation that collected its subscriptions by DD. Every year, sometimes months after renewal, a few members would go to their bank and falsely claim that they had told us they didn't want to renew! The bank would refund them, debit the money from our account then charge us for the privilege!

That was 15 to 20 years ago so maybe things have changed.

DCFC79 · 26 October 2016 at 7:58PM

Why did you not see the payments being taken out before now ?

Meant to check bank statements on a regular basis.

bris · 26 October 2016 at 8:21PM

Things have changed, when I made a DD claim with the Clydesdale bank a couple of years ago I was told they didn't automatically refund now and an investigation would takes place first.

LadyDee · 26 October 2016 at 8:30PM

I am amazed at the number of posts from people who appear never to check their bank statements! Whenever I have had occasion to cancel a regular payment the first thing I've done the following month is check that the change has been made.

Now you expect the bank to sort it out? Why should they? It was your responsibility to ensure that your instructions had been carried out.

Laz123 · 27 October 2016 at 8:21AM

LadyDee wrote: »

I am amazed at the number of posts from people who appear never to check their bank statements! Whenever I have had occasion to cancel a regular payment the first thing I've done the following month is check that the change has been made.

Now you expect the bank to sort it out? Why should they? It was your responsibility to ensure that your instructions had been carried out.

Everyone isn't as efficient as your ladyship. Some folk stop paper statements in favour of online statements and if paperwork isn't in front of you as one gets older they forget to check unless the need arises. But it is a good idea to regularly check.

LadyDee · 27 October 2016 at 8:21PM

Laz123 wrote: »

Everyone isn't as efficient as your ladyship. Some folk stop paper statements in favour of online statements and if paperwork isn't in front of you as one gets older they forget to check unless the need arises. But it is a good idea to regularly check.

Well in that case they should stick to paper statements then. I'm "older", of the generation that were taught to live within their means, don't spend what they haven't got and make sure the books balance at the end of the month - you know, take responsibility for their own (in)actions.

I doubt very much that the OP is "older" if this is a gym membership, and most of the posts I referred to are not from "older" people, they are from the "entitled" generation - you know, those who blame everybody else but themselves?

Direct Debit payments continued after I cancelled gym membership

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