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Direct Debit Indemnity Claims
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# 1
masey999
Old 26-05-2007, 4:57 PM
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Default 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

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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# 2
Crabman
Old 26-05-2007, 5:14 PM
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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
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# 3
jonesMUFCforever
Old 26-05-2007, 8:52 PM
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I agree with previous poster. Your bank will in fact 'debit' the gym company's bank and refund you.
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# 4
vonnie69
Old 06-08-2008, 2:24 PM
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Angry Help!!!!!!

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
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# 5
edda
Old 06-08-2008, 2:44 PM
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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?
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# 6
MarkyMarkD
Old 06-08-2008, 4:01 PM
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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.
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# 7
Alex0509
Old 21-10-2008, 6:30 PM
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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
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# 8
Mikeyorks
Old 21-10-2008, 7:00 PM
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Quote:
Originally Posted by Alex0509 View Post
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 !
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# 9
olly300
Old 21-10-2008, 7:10 PM
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Quote:
Originally Posted by Alex0509 View Post
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.

Last edited by olly300; 21-10-2008 at 7:12 PM. Reason: more info
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# 10
Quinland
Old 27-03-2009, 1:21 PM
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Quote:
Originally Posted by jonesMUFCforever View Post
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
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# 11
brianfellows
Old 28-03-2009, 8:05 PM
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Default Direct Debit Guarantee for Fraud?

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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# 12
ShelfStacker
Old 28-03-2009, 8:32 PM
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No. The Direct Debit indemnity scheme doesn't cover the purchase of items, only bank or originator error.
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# 13
andyhullock
Old 01-09-2009, 10:02 AM
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Exclamation Phone Bill Direct debit indemnity

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
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# 14
dazza.mk
Old 01-09-2009, 3:00 PM
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Quote:
Originally Posted by andyhullock View Post
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.
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# 15
dunstonh
Old 01-09-2009, 3:31 PM
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Quote:
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.
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# 16
MarkyMarkD
Old 01-09-2009, 8:46 PM
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... because the provider haven't done anything wrong. They've provided the service, whether or not you've opted to actually use it.
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# 17
formerbanker
Old 20-10-2009, 5:26 PM
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Quote:
Originally Posted by rolandpol View Post
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.
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# 18
hullkrfan
Old 22-02-2010, 10:02 AM
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Quote:
Originally Posted by masey999 View Post
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

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
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# 19
joanne-8543
Old 18-04-2010, 11:47 AM
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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.
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# 20
agsnu
Old 18-04-2010, 12:42 PM
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Quote:
Originally Posted by joanne-8543 View Post
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.u...-guarantee.htm
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