Direct Debit Guarantee - Lies!

owainjones

Just wanted to share my experience and to warn others...

Last month I rang Tesco Mastercard to tell them to change my DD to minimum payment from full amount. I was told that it has been done.

Anyway the otherday I checked my current account statement to find that Tesco had taken the FULL amount and made my current account overdrawn.

I rang tesco on Wednesday to tell them and they said they were sorry and a CHAPS payment would be made and it would be guaranteed back in my current account by 2pm on Friday. So 3pm today (Friday) I checked my current account and found the money was not there. I rang Tesco and they said that it would take until Tuesday to get the money back.

I said that this was not acceptable and so decided to go to my bank (HSBC) to get a refund through the Direct Debit Gurantee, after speaking to HSBC they said they would start a Direct Debit claim against Tesco but it would take 48 business hours. I said that they must do it immeditaley as stated in The Direct Debit Guarantee. They said no it would be 48 hours.

I did some more research online and found the Banking Code. This states: We will tell you about the Direct Debit Guarantee, which protects you if a direct debit you have not authorised is taken from your account. If any money is wrongly taken from your account under a direct debit, we will refund your account as soon as you tell us about it.

So I rand HSBC back and told them about the Banking Code. They still refused to give me my money back and said it would take 48 hours. The girl told me that the word "immediate" only means that they refund is given after they have taken 48 hours to speak to Tesco.

So just to warn people that:

1) The Direct Debit Guarantee
"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"
http://www.bacs.co.uk/BACS/Consumers/Direct+Debit/Your+rights/

2) The Banking Code
"We will tell you about the Direct Debit Guarantee, which protects you if a direct debit you have not authorised is taken from your account. If any money is wrongly taken from your account under a direct debit, we will
refund your account as soon as you tell us about it.
http://www.bankingcode.org.uk/pdfdocs/PERSONAL_CODE_2008.PDF

actual means nothing!

What is the point of using the words "immediate refund" and "refund your account as soon as you tell us about it" if they won't do it?

Comments please!

Extant

Our standard procedure is pretty much the same.

We start an indemnity, and advise the customer it will take 48 hours. If they say they need it immediately, then we take it off a suspense account and just get it re-credited there when the indemnity is complete.

I'm surprised HSBC don't do the same. Well, they half do anyway...

Mikeyorks

The Guarantee is fine ....... it's the interpretation put upon it by certain Banks that is the problem. And not helped by the fact that BACS decline to take any of them to task, despite they have to sign up to the rules before they can administer DDs.

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

aylithuk

I work for a major high street bank in the private banking sector. What I think customers fail understand is that the bank pays you back out of their own 'pocket' so to speak while we are getting the refund back from the retailer. If you had to wait for the retailer this can take upto 6 weeks if the retailer dispute your claim.

The word "immediate" should state that we'll process the claim "immediately" and your refund will be with you in 48 hours after the bank system updates.

CG19a

I had to do this once with Natwest about a Vodafone DD, and it was in my account the next day. All they said to me was that it would take one business day, which is the usual for most things with Natwest.

Mrs_Ryan

48 hours - your lucky! It took me 8 MONTHS to get my money back from NatWest as they couldnt be bothered to do it!!

woozywendy

I had cancelled an insurance dd and the company still took the money so I went straight into Halifax branch on a Saturday morning and they put the money straight back into my account while I was stood there. The woman told me they would claim the money back from the insurance company.
:j

olly300

I made a claim a few years ago with RBS by letter about refunding a direct debit and their first response was to ignore it. Three weeks later I wrote to them and threatened to report them to the ombudsman so they refunded the money in 5 working days from receipt of my letter. The company then re activated the direct debit 6 months later, and RBS refunded me in 3 working days of complaining in writing. (I know when they received each letter.)

When I made a claim last year with Nationwide they refunded the money within 3 days including the weekend. I know the refund from Nationwide initially came from them as the mobile phone company decided to refund me another month later when I threatened them with court action after contacting OFCOM. Nationwide subsequently took the money back out of my account after writing to me first.

With RBS I wrote to my actual branch with Nationwide I did my request via online banking.

ldn-100

I recently had to reverse a direct debit from BT as they were taking more than my bill total. Lloyds TSB were able to do this immediately. However, the person I spoke to said this was because I had spotted it on the day it came out of the account, and if I had not noticed until the next day or later it would take longer to sort out. This makes me glad I check my online banking every day.

owainjones

Seems not many people have actually had the money back straight away.

Why do the DD Guarantee and the Banking Code use such words when thye are not true?

Should I write to BACS to inform them?

YorkshireBoy

Did you make your original request before, or after, your statement date?

Did your statement say the payment to be collected by DD was the minimum or full payment?