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Amex Direct Debit warning

I'm in the process of moving my bank account to Cahoot. :-)

The Cahoot account switcher team are excellent (so far - touch wood...), and my direct debits are being amended without a hitch - apart from the AMEX one.

I have an Amex cashback card that I pay off in full every month by DD. But, I got a shock yesterday, when Amex sent me a letter confirming that my direct debit had been CANCELLED as per my instructions, and that I'd have to pay my bill via other means.

Now, I checked with Cahoot and my current bank, and neither they or I have EVER asked for the Amex DD to be cancelled. So, I called Amex, and spoke to someone in India. She told me that their system does not allow DDs to be amended. If an amendment instruction is received, Amex consider this to be a cancellation instruction, and IGNORE the new bank details that they have been given!

The only way they accept the new details is if you phone them yourself (sorry Cahoot switcher team, you don't exist in the eyes of Amex) - though their letter to me doesn't state this.

So, for this month, I'll have to remember to pay my bill online. Shame for Amex that I can set this payment up in advance so they stand NO CHANCE of me missing this payment, despite their obvious attempt to trick me into defaulting...

I can't believe the approach that Amex take. Not one other company is treating a direct debit amendment in this way - are they really that stupid?

Darryl. >:(
... Fool's Gold ...

Comments

  • grayme
    grayme Posts: 5 Forumite
    I am not surprised, I've suffered the same with numerous companies moving to smile.co.uk. :(

    All companies that operate DD's are regulated by BACS and when you transfer accounts, your new bank will send an electronic message to the DD company telling them to move to them. Many entities should deal with these but don't, either because they don't understand them or insist (like Amex, citibank and the Woolwich to name just three) on having new signed mandates and hence ignore the messages.

    Smile.co.uk took it upon themselves to call the offending companies and tell them off, they also reported some to BACS.

    The key thing is not to let these companies charge you for their incompetance, citibank tried it and even wanted me to prove smile had done its stuff before they would refund the charges - one very fustrating telephone call! A swift fax back pointing out all their mistakes and it seems they have finally renaged. :o
    Nice to save.
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