Direct Debit failed - who's at fault?

Sophomore_Jinx

Hi..

If you set up a recurring direct debit with a company that states they'll be taking money on the 18th each month, but they don't take it until the 27th and it fails, are you still liable to pay the admin fees and bank charges or should they waiver them due to defaulting from the agreed date?

It specifically says at the bottom of the original e-mail that, "If the amounts to be paid or the payment date changes, we will notify you 3 working days in advance of your account being debited or as otherwise agreed." ... I received no correspondence from them in regards to the date being changed, which is my argument with them.

They're saying that they did debit it on the 18/03, but it's normal that the request and the clearing between the banks can take a couple of days, and that I should've made sure my account was covered.

I'm totally confused... are direct debits not an instant transaction?

It's more the principle to be honest, as I don't feel I'm at fault since had they stuck to the mutually agreed date of the 18/03, the money would've been available to them.

I'm going around in circles and don't know how to get this settled.

Thanks x

natweststaffmember

Its the problem with the Direct Debit Guarantee scheme. The company are at fault yet they say the bank should refund under the scheme. Yet the scheme only covers when the funds have been paid out and not the charges associated with it. I think you need to reclaim your bank charges as per the set guidelines set out here.