Direct debit guarantee

blt

Hi everyone - please help! Is it true that under the direct debit guarantee you have to be notified about any changes to a dd? I have a monthly direct debit for my broadband connection which goes out on the 23rd of each month. Tis month however it was taken out on the 21st - when no money was in. The bank (lloyds) allowed the dd but it's taken me over my agreed overdraft limit so the charges are going to be nearly £35. I don't have much spare cash as it is - can they do this?

YorkshireBoy

According to http://www.bacs.co.uk/BPSL/directdebit/generalpublic/usingdirectdebit/managing_DD/managing_DD.htm...

You should have been notified in advance of any changes to amounts to be paid or the payment dates (normally 10 working days in advance)

...although most organisations give you around 14 days notice.

The DD guarantee goes on to say...

The Direct Debit Guarantee ensures that, in the unlikely event of a mistake, you will receive a full refund from your bank or building society

blt

so should I complain to my bank do you think? Sorry if that's a really bvious question

YorkshireBoy

Have you received any mail/e-mail from the organisation recently?

There might be a possibility that they've notified you in a letter or e-mail and you missed it?

If you're sure you've not been notified then, yes, approach your bank.

blt

No, I've definitely not had anything from them. I'll speak to the bank. Thanks for that!

jcr16

i have had similar. i use online banking , and a d/d due to go out on the 18th showed up as going out on the 16th. ( this was a few months back). when i spoke with bank they said it was because their computers don't update over the weekend so it showed as going out on the friday evening , but wouldn't leave the account until the monday morning.
like also my hubby's wages always go in on the 23rd. but that is tomoz a monday , and when i checked my balance early hours saturday morning , the money was in there. as they can't process over the weekend. might be worth contacting your bank.

hope this helps

jonesMUFCforever

You may want to speak to the bank BUT they only have authority for a company to debit your account. They have no control of how much is asked for or when.
Do you have a signed agreement or copy of the terms and conditions of what you signed up for?
All the bank can do for you is return a payment under the D/D indemnity scheme whereby a payment has been taken in error.
You go on to say that this month's payment has been taken out on the 21st January but as this is not a working day then it will show up on your statement as 23rd January (Monday) BUT the funds have got to be in the account the day before a d/d is due UNLESS it is an automated BACS credit the same day.If you pay in first thing Monday morning to cover it will be too late as decision whether to pay or return d/d will be done overnight.

angelica

Many banks show all incoming and outgoing Monday money already on Saturday (e.g. RBS, NatWest, Barclays). My salary is on 25th and when 25th is Monday I can see and (even use) the amount already on Saturday, same with the scheduled payments (they are visible on-line, but will be adjusted as Monday outgoing once in the official statement).

If you expected there to be enough money on the account on 23th to cover DD, they should already be visible, too. or did you plan to deposit money on Monday?

Depending on bank they can allow you to cover excess overdraft on the day and will not charge fees if your balance at the end of the banking day will be less than agreed overdraft. Before my 'lightbulb' moment I sometimes received calls from RBS asking me to deposit money to bring ovedraft to the agreed limit and never have been charged if I had time and money to do it on the spot.

jcr16

angelica wrote:

Many banks show all incoming and outgoing Monday money already on Saturday (e.g. RBS, NatWest, Barclays). My salary is on 25th and when 25th is Monday I can see and (even use) the amount already on Saturday, same with the scheduled payments (they are visible on-line, but will be adjusted as Monday outgoing once in the official statement).

.

that is just how i wanted to word it. but u have mad it so much clearer than i could or did. thankyou

impy78

blt wrote:

Hi everyone - please help! Is it true that under the direct debit guarantee you have to be notified about any changes to a dd? I have a monthly direct debit for my broadband connection which goes out on the 23rd of each month. Tis month however it was taken out on the 21st - when no money was in. The bank (lloyds) allowed the dd but it's taken me over my agreed overdraft limit so the charges are going to be nearly £35. I don't have much spare cash as it is - can they do this?

It's not NTL by any chance???