Direct Debit Mayhem

biggeoffc_2

On 24/25 November, for no logical reason, I checked my Egg credit card account online. I hadn't used this card for some 8-9 months and only kept it as a backup to my main card.
To my surprise, 3 items had been charged to my account and Egg had already operated the direct debit for 2 of these unauthorized transactions at the end of the statement period. (I had one set up to clear the full balance each month.) Naturally I phoned Egg to start the fraud ball rolling, and was told that they would cancel the existing account and send me a new card. I declined the new card and said I didn't want to continue with them as I didn't consider them to be secure.
I then went to my bank's site and cancelled the dd to Egg.
On 27 November I received an acknowledgement from Egg to say that they would resolve the matter or, contact me for further information within 7 working days.
I returned yesterday after 2 weeks away and found nothing from Egg in my post. So, this morning I contacted them to find out what was going on and they said that my account had a credit balance on it as they had found the transactions to be fraudulent. What account? I enquired of the person on the phone, I had asked for the account to be closed. They are going to send me a cheque, so at least it has not cost me anything.
So, when I checked my bank account this morning, I found that Egg had set up a further dd with my bank with a new reference using the old mandate. They had then taken a further £40, (the 3rd of the fraudulent transactions) from my account without even notifying me.
How is this possible? Neither my bank, nor Egg, seem to see anything wrong with what they have done. Am I the only one?

Optimist

Contact your bank and tell them you require the money refunded under the Direct Debit guarantee.
If you have any problems, then go through the banks complaints procedure

biggeoffc_2

I tried that when I cancelled the dd and was told that as there was a dd mandate in existance I should cancel it and then contact Egg for a refund.

Egg have already started the refund process, as stated, and I should be getting that in 3 -5 working days direct into my bank account. So, except for 3 weeks of stress and worry and having to rapidly transfer some money around, because I was not expecting that bill, I'm not really any worse off.

My point is that, despite my cancelling the dd for the old account, Egg were able to set up a new dd for a new account using the old mandate! I was not required to authorise it, nor was I informed that they were going to do it. So, how secure is the dd guarantee that the banks touted, if among themselves they can set up unauthorized dd's.