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Direct Debit - How does it work?
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# 1
MickKnipfler
Old 30-01-2007, 2:28 AM
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Default Direct Debit - How does it work?

If I want to cancel, who do I have to contact; the bank or the trader?
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# 2
seven-day-weekend
Old 30-01-2007, 2:32 AM
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I've always contacted the bank; although I believe there are some that have to be cancelled by the trader.

Try the bank first.
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# 3
MickKnipfler
Old 30-01-2007, 2:38 AM
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I cancelled with the trader but they continued to charge me. They acknowledge that I cancelled my membership but say I should have cancelled with the bank
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# 4
seven-day-weekend
Old 30-01-2007, 2:47 AM
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So cancel with the bank!
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# 5
MickKnipfler
Old 30-01-2007, 2:50 AM
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I have...but they've taken money in between....I need to know where I stand
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# 6
computerwoman
Old 30-01-2007, 2:50 AM
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if in doubt always cancel with the bank as they cant take anymore of your money that way, its a pain trying to get it back and in some cases you dont



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# 7
MickKnipfler
Old 30-01-2007, 2:55 AM
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I need to know my rights though. I cancelled my subscription and have a letter from them confirming that. They say that I should have cancelled the DD though and "as a gesture of good will" are offering me 2 months refund (instear of about 13)
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# 8
Paul Varjak
Old 30-01-2007, 2:55 AM
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Quote:
Originally Posted by MickKnipfler
I cancelled with the trader but they continued to charge me. They acknowledge that I cancelled my membership but say I should have cancelled with the bank
When a direct debit is set-up you have a direct debit guarantee. If you cancel the direct debit with the trader they should act on your request! If they do not, you should contact your bank for a refund under the guarantee. I recently did this when nPower asked me to pay a final bill - which I duly paid - but they also used a direct debit to collect the money!

The moral is, always cancel the direct debit with both the trader and the bank. If you have online banking, you can probably cancel direct debits online.
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# 9
MickKnipfler
Old 30-01-2007, 2:57 AM
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I did cancel online today. They have taken 13 months payment though and have offered 2 months refund as "a gesture of goodwill"
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# 10
tripled
Old 30-01-2007, 2:59 AM
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As Paul Varjak said, claim them back under the direct debit guarantee then!
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# 11
MickKnipfler
Old 30-01-2007, 3:01 AM
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will do if that's my entitlement......a call to the Halifax may be in order!
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# 12
Bossyboots
Old 30-01-2007, 6:54 AM
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Agree with the others, contact your bank.
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# 13
iceicebaby
Old 30-01-2007, 7:59 AM
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Under the direct debit guarantee, and I quote!

if an error is made by either the company or the bank, a full and immediate refund is given by your bank.

The bank then claim this money back from the company who will then pursue you for it or not.
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# 14
MickKnipfler
Old 30-01-2007, 8:14 AM
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So If I cancel my membership and they confirm and then continue to take the money, is that a "mistake"?

Am I right in believing that with a DD, the company takes the money and can vary the amount which is different to a Standing order where the bank controls it?
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# 15
Moonbeam
Old 30-01-2007, 8:57 AM
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With a Direct Debit the company is generally in control of taking the money and can take set or variable amounts.

A standing order is a regular payment you set up yourself for a set amount, so you are in control of the payments.

When cancelling Direct Debits contact the company and the bank to make sure that no further funds come out of your account.

Your bank can fill out a Direct Debit Indemnity Claim form for any payments made in error - this means the money goes back into your account and the bank persue the company for the funds.
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# 16
Paul_Herring
Old 30-01-2007, 11:28 AM
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Quote:
Am I right in believing that with a DD, the company takes the money and can vary the amount which is different to a Standing order where the bank controls it?
Sort of.

Direct Debit: The company receiving the money pulls however much they want out of your bank account when they want to (well - within limits - they have to give you notice of changes.) You can cancel the DD at any time (but you should give notice to the company aswell.)

Standing Order: You decide the amount and the date, and you push it out of your account. You can cancel the SO at any time.

Continious Payment Authority (CPA): Usually associated with credit cards, but applies to some bank accounts. Acts like a Direct Debit, with the major exception that you cannot cancel it yourself at the bank (not can the bank themselves cancel it) - you must get the company taking the money to cancel it.

The difference between DD and CPA is which number(s) you give the company off your bank card. If you give the sort code and account number it's a DD, if you give the 16 digit number across the middle, it's a CPA.
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# 17
MickKnipfler
Old 30-01-2007, 11:39 AM
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Thanks guys,

I phoned the bank this morning and they said complain to the company, if that doesn't work fill out the indemnity form
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# 18
YorkshireBoy
Old 30-01-2007, 11:42 AM
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Quote:
Originally Posted by MickKnipfler
If I want to cancel, who do I have to contact; the bank or the trader?
From the BACS website...
Quote:
Q. How do I cancel a Direct Debit?

A. If you need to cancel a Direct Debit, simply write to your bank or building society. It is also a good idea to send a copy to the organisation concerned. Your bank or building society can make the cancellation up to and including the due date, but try not to leave it until the last minute or you run the risk of a payment being made. Remember that cancelling the Direct Debit simply stops paying the organisation. If you carry on receiving the goods or service then you will have to organise an alternative payment method.

http://www.bacs.co.uk/BPSL/directdeb...ic_FAQ.htm#Q11
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# 19
JohalaReewi
Old 30-01-2007, 1:03 PM
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Quote:
Originally Posted by MickKnipfler
Thanks guys,

I phoned the bank this morning and they said complain to the company, if that doesn't work fill out the indemnity form
That is not how the DD guarantee scheme works. If money has been paid by DD out of your account and it was either the wrong amount, or too early (or both) you are entitled to a full and immediate refund from your bank. The bank are not allowed to tell you to take itup with the other company, or make you wait until their indemity form has gone through the works. BACS official line on the definition of immediate is 'within 24 hours'.

You said "I cancelled with the trader but they continued to charge me. They acknowledge that I cancelled my membership but say I should have cancelled with the bank". This would suggest that you were not expecting to pay any more but payments were taken so, this is covered by the DD guarantee scheme and your bank should refund immediately.

You are sure it was a DD and not a CPA?
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# 20
Hunter1981
Old 30-01-2007, 1:15 PM
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Its called an "Indemnity Claim", the bank have no option but to comply with refunding any dd's paid from your account in error.
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