Cancelling a direct debit

jd87

I'm with Natwest and I have cancelled a direct debit to a third party as a way of ending my subscription with said third party. Is there any risk of this direct debit being set back up without my permission? I cancelled through online banking, is this the same as cancelling it in any other way? Will Natwest charge me if the company tries to take the direct debit and they have to refuse it?

YorkshireBoy

It's not clear from your post whether you have also cancelled your contract/agreement and the DDI with the DD originator.

If you haven't, then yes the originator could set up the DD again...and claim again if you owe any monies (as is often reported on these boards).

jd87

I haven't actually cancelled the agreement with the originator. It's for a life insurance policy which I am free to cancel whenever I like. Perhaps I should call them and let them know I want to cancel, I was just trying to avoid having to make the phone call to them.

YorkshireBoy

jd87 wrote: »

I haven't actually cancelled the agreement with the originator.

Then I think you should read your direct debit guarantee...

The Direct Debit Guarantee

• If the amounts to be paid or the payment dates change, the organisation collecting the payment will notify you normally 10 working days in advance of your account being debited or as otherwise agreed
• If an error is made by the organisation or your bank or building society, you are guaranteed a full and immediate refund from your branch of the amount paid
• You can cancel a Direct Debit at any time by contacting your bank or building society. We also recommend you notify the organisation concerned.

http://www.bacs.co.uk/BACS/Consumers/Direct+Debit/Your+rights/

...because you still have a contract (for both cover and payment) until you formally cancel it.

olly300

jd87 wrote: »

I'm with Natwest and I have cancelled a direct debit to a third party as a way of ending my subscription with said third party. Is there any risk of this direct debit being set back up without my permission? I cancelled through online banking, is this the same as cancelling it in any other way? Will Natwest charge me if the company tries to take the direct debit and they have to refuse it?

To answer your questions in order:
1. Yes
2. Yes
3. Yes

You can cancel your direct debits without informing the company that you have cancelled your contract. You can also cancel the direct debit and inform the company in writing. Neither method is wrong.

Instead of phoning the company up just write them a letter and stick a stamp on it.

Due to the way lots of companies collect their direct debits whether you have informed them or not and whether you are in a contract or not, they may reinstate the direct debit. (I had more than one company try this on me when I've cancelled contract legally.)

If they do this then you need to write* to Natwest and inform them when you cancelled the direct debit. If the direct debit made you get bank charges then ask for them to be reimbursed.

If you have any problems with the bank follow the bank's complaints procedure and threaten to take them to the financial ombudsman.

If you have any problems with the insurance company again follow their complaints procedure and threaten to take them to the financial ombudsman.

*I always suggest people write to organisations and if possible use recorded delivery, as unfortunately lots of companies including banks only seem to take recorded delivery letters seriously.