Direct debit problem, info appreciated

bedshaped

I've never had a problem with a DD before. A bit of info is all I'm looking for.

My bank paid too much money out on a DD today. I rang them and they refunded the full amount back into my account today.

What happens now as far as payment to the company concerned?
Will they repay the correct amount? Or does the bank have to stand the loss?
I'm confused.

Money is tight at the moment due to my IB being stopped and I have to wait another 10 days for an interview at the jobcentre before I can put in a claim for Income Support.
I'm just trying to budget my money to last as long as possible. I don't know how long its going to take to sort out my IS claim and I can't budget without knowing whether or not to expect the money to go out of my account again later this week.

Anyone know what happens? I'm with HSBC if that helps/makes a difference?
Thanks in advance

grumbler

bedshaped wrote:

What happens now as far as payment to the company concerned?
Will they repay the correct amount? Or does the bank have to stand the loss?
I'm confused.

I am 99% sure that the bank will claim the money back from the company. I think some companies can charge you for unpaid DD, credit card companies for example.
If you don't have money on your account it is better to cancell DD(s) in advance.

MarkyMarkD

The bank didn't do anything wrong. They pay the amount the DD beneficiary asks for. If a bank is asked for a refund under the DD guarantee they will debit the amount from the beneficiary's account.