Reinstated Direct Debit

Linzoid

I cancelled a direct debit on my online banking ages ago which was for mobile phone insurance and I've just realised that it is still being paid! I've cancelled the mobile phone contract and haven't even got the phone anymore! I've rung the bank and they have said that the company can reinstate the direct debit if they feel you still owe them! Surely if you have instructed the bank not to pay it then they should honour that and at least let you know that someone is trying to take payment again! They've just carried on paying it and not even said anything!

Is this normal?!! If so, why is there a "cancel direct debit" section on online banking?

Fire_Fox

Did you cancel the contract with the insurance company as per your agreement?

Linzoid

No, I realise now that that is the correct thing to do but I just cancelled it on online banking.

Shouldn't the bank have refused to pay it when they tried to take it? Or at least contacted me to discuss it?

Paul_Herring

I've rung the bank and they have said that the company can reinstate the direct debit if they feel you still owe them!

Not without telling you they can't.

Invoke the direct debit guarantee and claim your money back from the bank.

jadex

Fire_Fox wrote: »

Did you cancel the contract with the insurance company as per your agreement?

Does it make any difference? I believe the payment is between you and the company, bank has nothing to do with this.
You cancel the DD then bank is not authorised to send any money from your account to anyone.
Simple (or not so?)

Paul_Herring

You cancel the DD then bank is not authorised to send any money from your account to anyone.
Simple (or not so?)

The bank is authorised to send money if a DD has been set up. What appears to have happened in this instance is that the debiting company have simply asked for the DD to be set up again, (without telling the customer.)

Google for AUDDIS for the mechanism that allows this to happen.

Fire_Fox

jadex wrote: »

Does it make any difference? I believe the payment is between you and the company, bank has nothing to do with this.
You cancel the DD then bank is not authorised to send any money from your account to anyone.
Simple (or not so?)

I know what you are saying but .... the way it's turned out the OP has met her contractual responsibilities (albeit by a DD being paid that probably shouldn't have). If the DD had cancelled successfully and the payment had failed, the OP would have defaulted on an active contract. In some cases the penalty for doing this is quite harsh.

opinions4u

Remember to reclaim the premiums that shouldn't have been collected via a direct debit indemnity - contact your bank to ask for immediate reimbursement.

Then cancel the direct debit with the insurance company and the bank.