Cancelled Mobile Phone Contract Continued To Take DD?

bjblackmore

Hi,

My sister in law is a university student, she phoned me today asking for some advice, but I'm not to sure where she stands, so this has lead me to ask you guys!

Last year she had a mobile phone contract with Orange, which she cancelled the contract last July, but never cancelled the Direct Debit (She said she didn't realise she had to). But Orange have continued to take the monthly payment of £30 from her bank account, which totals about £300 now, (I don't know how she managed to miss £30 going missing from her account every month!!). Anyway, after phoning Orange this morning, they have told her that there is nothing they can do, and won't refund the money.

Is this right? Surely they have been taking payment for a product/service that hasn't been provided? Can she get her money back, and if so how? The only advice I could give this morning was to go to her bank, and get them to request the money back, is there anything else she can do?

Many thanks

Ben

Crazy_Jamie

Under what circumstances did she cancel the contract? Did she write to them or do it over the phone? Was the contract at the end or did she try to cancel it in the middle of the term?

bjblackmore

Hi,

Thanks fopr the reply.

Apparently it was at the end of the contract, and over the phone (I always make sure I send a recorded delivery letter as well when I do these things). However, the account has been closed, and Orange have confirmed that the account was closed last July, but they just continued to take payment.

Ben

bookworm1363

Send letter, recorded delivery, giving them 14 days to refund the money or she'll take then to Small Claims. Then take them to SCC if they don't comply. No point in messing about with theses people.

Nothing they can do, my backside. :mad:

Tozer

bjblackmore wrote: »

Hi,

Thanks fopr the reply.

Apparently it was at the end of the contract, and over the phone (I always make sure I send a recorded delivery letter as well when I do these things). However, the account has been closed, and Orange have confirmed that the account was closed last July, but they just continued to take payment.

Ben

Then they have to refund the money as they were not providing a service.

She may well be able to claim on the Direct Debit Guarantee although there may be time limits for making a claim.

On what basis are they saying that they will not refund?

isplumm

Suggest call bank, as it should be covered by Direct Debit mandate ....

Mark

sporedude

Maybe not refunding on the basis that they didnt notice £30 was going out every month.

olly300

bookworm1363 wrote: »

Send letter, recorded delivery, giving them 14 days to refund the money or she'll take then to Small Claims. Then take them to SCC if they don't comply. No point in messing about with theses people.

Nothing they can do, my backside. :mad:[/QUOTE

Just claim it back via the direct debit guarantee. Write to the bank concerned giving the name of the company who took the money, a list of dates and the amounts taken at that date and ask for it back. Either send the letter by recorded delivery or use secure messaging if you have an internet banking. The reason to write is many banks seem to lie about the direct debit guarantee.

If Orange then contact you asking for money get aggressive. The reason is that telecoms companies are very bad at billing and will try and send cases to debt collectors even when your account is cancelled and fully paid up.

Write a letter back to them with the title "Letter Before Action" stating briefly in 2 lines why you don't owe them anything. At the end of the letter state if they attempt to take the money from your bank account again, attempt to/put a default on your credit records or chase you with debt collectors due to their breach of contract and breach of the supply of goods and services act you may take them to court. Also state you will be reporting them to them to OFCOM. Send the letter to them by recorded delivery and keep the receipt somewhere for 2 years.*

If they then contact you again stating you owe them money just write back again by recorded delivery with the title "Letter Before Action" refer them to your previous letter by date only and state that they have 21 days to cease their actions or you will take them to court for (put an amount on the letter equal to the amount they want out of you) plus costs and interest. Also put the OFCOM complaint number in the letter.

If they don't leave you alone after 7 days send them a final "letter before action" by recorded deliver and refer them to your previous letters by date alone.

You shouldn't need to get to the third letter.

*This is extreme but I've had companies I've cancelled contracts and direct debits with try and take the money out 6 months to 13 months later.

bookworm1363

The reason I didn't mention the DD guarantee is because I have a strong feeling that they'll say it's past the time to report it if it's been on going since last July. I can't find the info right now, but I am pretty sure that there is only a short window of time to claim under the DD guarantee, hence my suggestion to go down the SCC route, where the only limitation is 6 years.

Mark_Hewitt

bookworm1363 wrote: »

The reason I didn't mention the DD guarantee is because I have a strong feeling that they'll say it's past the time to report it if it's been on going since last July. I can't find the info right now, but I am pretty sure that there is only a short window of time to claim under the DD guarantee, hence my suggestion to go down the SCC route, where the only limitation is 6 years.

Exactly, it's not their money.
The key here is that Orange agree that the account was cancelled at the time. Although cancelling the DD is recommended in these situations, you are not required to do so, after all if you aren't receiving a service, what is there to charge for?

Before you file in small claims some very insistent phone calls to senior persons are needed.

If they continue to say "too late" just remind them that if I came into your house once a month and stole £30 and you didn't find out for a year, could I then say "ah well, too late now!"?