Direct Debit Guarantee - Lies!

cousin-jay

If you’ve had a problem with the Direct Debit Guarantee in any way e.g. like getting a full and immediate refund when money has been taken from your account in error, you must write to the company that governs Direct Debit to complain. Their details can be found below. Remember to write a full account of what happened including your bank name e.g. HSBC Bank Plc and the name of the company taking the direct debit e.g. HSBC Card Services.

Bacs Payment Schemes Limited
Direct Debit Guarantee Complaint
3rd Floor Livingstone House
12 Finsbury Square
London
EC2A 1AS

They are there to help and are interested in your problem. My father’s just had a huge problem with HSBC taking over £2k from his account by direct debit in error. They were supposed to put the money back in my account IMMEDIATELY in line with the Direct Debit Guarantee, but they seemed to think that it didn’t apply to them!

I gave HSBC ample opportunity to refund the money and every time they refused and said it would take 3 – 4 working days. Even when I explained they were in breach of the contract made within the Direct Debit Guarantee they still refused to put the money back. I even tried the formal complaints department for HSBC and they still would only refund the money within 3 – 4 working days. This was unacceptable and I had no choice but to formally complain to Bacs.

Bacs have been very helpful and reprimanded HSBC for not adhering to the Direct Debit Guarantee, and would be interested to hear from others who have experienced problems with HSBC or any other Bank. They want to know. Bacs Payment Schemes Limited say “The Direct Debit Scheme is governed by strict rules and guidelines and any breach of the rules is taken very seriously”.

I am currently writing to Bacs again to suggest that there should be something more to protect us customers from banks when they refuse to refund money under the terms of the guarantee e.g. some kind of fine, as although HSBC has been told off by Bacs, there is nothing to stop them doing it again to someone else. My father was lucky and able to manage without his £2k for almost a week. If it had happened to me, I would have gone overdrawn and received bank charges for their mistake. So I believe something must be done.

So I say again, if you have had any problems with the Direct Debit Guarantee PLEASE, PLEASE, PLEASE write and tell them your story. No one can help if they don’t know!

I hope you all get help like I did.

Mikeyorks

cousin-jay wrote: »

My father’s just had a huge problem with HSBC taking over £2k from his account by direct debit in error. They were supposed to put the money back in my account
I gave HSBC ample opportunity to refund the money and every time they refused .

Not surprised they refused. All sounds a wee bit suspicious?

ozy1029

Hi There,

Would somebody be able to help regarding Direct debits?

I changed my bank details with a company a few months ago and they didn't changed it as requested before the due date (i gave them over 3 weeks notice). I then came off holiday shortly after the due date to find i'd been charged £63 by Halifax (£35 & £28) as the company took the money from my old bank account. Suffice to say i had moved banks and this had £0 in.

The company has since refunded the £35 yet are refusing to budge on the additional £28 saying i should speak to Halifax and that "there is no point ringing them again as they refuse to refund it"!

Im pretty sure their not allowed to do this as its due to their incompetence i'm down by £28 yet they seem to think Halifax are in the wrong for charging another £28?

Can somebody please advise on this?

The direct debit guarantee clearly states if there is an error on the originators behalf the onus is on them to refund however would this apply in this instance?

Thanks.

YorkshireBoy

Who was the DD originator?

Did you cancel the DDI with Halifax (as you are instructed to do under the direct debit guarantee), or only with the DD originator?

Was the £35 refund an admission of liability or a goodwill gesture?

The direct debit guarantee doesn't cover subsequent and consequential losses...only a refund of monies collected in error.

ozy1029

The originator was Fitness First, i didnt cancel the DD as i simply asked them to change my bank details so the DD came out from my new account.

I didn't cancel the DD with Halifax as i assumed FF would change the details and not call for the DD from my halifax account (as i have had DDs before which were cancelled at the originator without being cancelled at the bank with no problems).

I believe it was an admission of liability as i spoke to the manager & customer care supervisor at the gym who both apologised for the error, i changed the details at the branch in the first week of June and once i got the letter regarding the charges i told them what had happened and to change the details.

A week later i asked again and they still hadnt been changed, i then made them change them on the spot and it took less than 2 minutes to update my details.

Im not sure if i still have the original letter they sent with the £35 cheque in but i can ask for another copy if need be however i am pretty sure they admitted liability as it was quite obvious it was their error.

It turned out my change of details form had been on their desk for over a month without them doing anything with it, i had to take my debit card down again and read them out to a member of staff while she changed the details.

YorkshireBoy

ozy1029 wrote: »

...i assumed...

This is where you fell down. In future, you should do as your copy of the Fitness First DDI/DD guarantee says and cancel with your bank because that's what you were doing, ie cancelling and setting up again...not "changing".

Good luck with getting the extra £28 from Fitness First...you may have to write (another?) formal letter of complaint.

In future...

1. Always cancel with your bank first...and then the originator.

2. Ensure both accounts remain open and adequately funded (or O/D facility in place) until all DD's etc have been moved and claimed for the first time on the new account.

Finally, your Halifax bank account 'mis-management' may have been reported to the credit reference agencies, depending on how long the unauthorised overdraft existed. You might want to check and mention this in your complaint letter to Fitness First.

ozy1029

The overdraft existed for a matter of days, it was taken on the 1st and i returned home and check my banking on the 3rd where i then transferred the money over straight away.

I realise i didnt cancel it with the bank but surely common sense dictates that their failure to comply with my instruction which then resulted in a financial loss for me means they are responsible? They have already admitted blame through the first refund - i dont really see that they have a legitimate excuse for not refunding as its clear as day its their fault.

I also cannot believe the audacity of their "manager" through a customer service advisor telling me not to bother ring back as they won't be refunding me. They think the bank shouldnt have charged £28 and that i should chase them, naturally the bank advised to chase them.

I am astounded that a large company such as fitness first expects me to pay for their mistake.

cousin-jay

Mikeyorks wrote: »

Not surprised they refused. All sounds a wee bit suspicious?

Just a typo, so not suspicious. Since it was my father's account, the money was asked to be returned to his account. I, through my father, gave them ample time to refund the money before contracting Bacs Payment Schemes Limited to complain.