Direct Debit Guarantee

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mandi wrote:

Thanks Neil,

... they gave me a refund.. Relucantly!!

Oh good. I'm glad the info helped.

Best wishes, Neil

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!!!!!! wrote:

Barclays refused to refund me after a DD which was actioned earlier in the month than ever before

Just out of curiousity, what did it say on your agreement? There's usually a wording that says 'on or after' a given date. I find companies differ in how soon the DD leaves the account after the due date. The only safe way is to ensure sufficient credit in the account at close of play one working day before the agreed due date. I believe payments leave the account at 9am (can anyone confirm that?)

It took a number of calls over a number of days

That's my principal personal gripe: I find it easy to argue my point when I'm so demonstrably in the right. But why should I need to waste the time and energy? And why should anyone even need to be capable of arguing their case when the terms and conditions are clear?

Best wishes, Neil

theboutiques

I have just had a problem with Natwest. They have said that when they recall a direct debit when the company claiming the money has made a mistake, the refund takes until the following day to credit. Obviously this isnt immediate like is stated in the direct debit guarentee.

After moaning for half hour at the call centre person I was passed to the supervisor who was equally as helpful and asked me things like "why havent you asked the company for a refund?"

Natwest's solution? To give me an emergency credit of the ammount and then take this back again tomorrow morning when the refund for the DD comes through. This seems like a really bad way round things, has anyone else had problems with Natwest?

ajithaj

Natwest was brillant when MBNA made a right royal c**k up with a DD from my account in March.

Perhaps a TV advert campaign telling people of their rights would be sufficient.

System

Here's the Ombudsman's excellent statement of the rules:
http://www.financial-ombudsman.org.uk/publications/ombudsman-news/27/27-directdebit-guarantee.htm
Briefly, under the guarantee your bank has to give you, you are entitled to an immediate (ie, same day) refund of any direct debit you say has been mistakenly taken. It is not for the bank to enquire into whether you are right.
Your bank then uses the (entirely separate) indemnity that the payee has to give its bank in order to reclaim the amount from the payee's bank. If the payee then claims to its bank that it was in the right, and your bank believes the payee, your bank can have a go at you for abusing the direct debit guarantee. But your bank has no standing to adjudicate in a dispute between you and the payee. The payee can, if you won't pay, sue you. It's then up to the district judge to decide who is right.

pmduk

I've used the dd guarantee a few times, fortunately without any problems. Although with RBS I've always had to wait til the next day for the credit to reappear in my account.

Twister84

theboutiques wrote: »

I have just had a problem with Natwest. They have said that when they recall a direct debit when the company claiming the money has made a mistake, the refund takes until the following day to credit. Obviously this isnt immediate like is stated in the direct debit guarentee.

After moaning for half hour at the call centre person I was passed to the supervisor who was equally as helpful and asked me things like "why havent you asked the company for a refund?"

Natwest's solution? To give me an emergency credit of the ammount and then take this back again tomorrow morning when the refund for the DD comes through. This seems like a really bad way round things, has anyone else had problems with Natwest?

pmduk wrote: »

I've used the dd guarantee a few times, fortunately without any problems. Although with RBS I've always had to wait til the next day for the credit to reappear in my account.

What you're doing is essentially recalling the direct debit which is leaving the account on that day so that it will go into the account overnight. Technically, the recall is processed "immediately"


It is also a lot more straightforward than processing a direct debit reclaim/indemnity which would only be done if the d/d had already been paid. This is where it could take a few days to credit.

As much as we'd like it to be "immediate", there are still bank processes & procedures to follow.

System

Twister84 wrote: »

As much as we'd like it to be "immediate", there are still bank processes & procedures to follow.

You are mistaken, like all too many bank staff. The direct debit guarantee, which all banks are required to give their customers, requires the bank to refund a disputed direct debit immediately, which means same day. If the bank doesn't do this, the customer has an open and shut complaint, which if necessary the Ombudsman will uphold.
The subsequent invoking of the indemnity system is a matter between the banks and the payee, is nothing to do with the customer, and does not affect the timing of the refund required by the guarantee.

izools

I was absolutely gobsmacked to call HSBC the other week as the telephone company had taken 3x the billed amount in one Direct Debit.

The (inland) lady in the call centre had never heared of the Direct Debit Guarantee or the Indemnity Scheme. She refused to do anything and told me my dispute is with the company concerned. She carried on in this vein until I demanded to speak to someone more senior.

The senior advised that he can refer my "complaint" to another department and it would take upto 8 weeks to resolve... I had to point out several times I'm not making a complaint, I'm merely making a claim under the DD Guarantee. After an inordinate amount of time on hold someone managed to figure out what this age-old, standard-fare banking practice actually was and agreed to put the money back in the next day.

Although OP is six years old now it would seem that the problem is just as prevalent to this day and as OP quite rightly sais, all but those willing to steadfastly stand their ground are going to end up screwed over by incompetent banks incapable of training their staff properly...

/rant

System

izools wrote: »

After an inordinate amount of time on hold someone managed to figure out what this age-old, standard-fare banking practice actually was and agreed to put the money back in the next day.

Should have been same day!
Please make a formal complaint to HSBC about the initial mishandling of your request to invoke the guarantee, and your wasted time and annoyance. Demand compensation of, say, £50. Complaints are logged and counted, and banks don't like getting them. All that is necessary for the triumph of incompetence is that good men do nothing.