Direct Debit problem

milliemonster

I have had a DD set up from our joint HSBC account for some time to repay a cahoot loan monthly, so far so good, a couple of months ago I transferred the DD from this account to my personal account online on my internet banking with HSBC

Following this, my DD in May was taken by Cahoot correctly from my personal account, on checking in June I noticed it hadn't been taken from either account, I rang Cahoot up and they told me the bank had refused the DD, when I checked with the HSBC, they told me they refused it because Cahoot tried to take it from our joint account and the DD is no longer active on that account.

I called Cahoot back, immediately paid the outstanding sum over the phone and they told me that they have this problem with HSBC all the time, Cahoot told me that when I transferred the DD across to my personal account, after the first month repayment from this account, HSBC should have sent Cahoot the new reference which they didn't, so consequently Cahoot still tried to take the money from our joint account, instead of HSBC referring this to my personal account where the DD is active they just refused it.

So now I am landed with a £30 default late payment charge (as it was the day after the DD was due I noticed it) and possiby a mark on my credit file. Cahoot have told me they won't refund it as its not their fault and I need to take it up with the HSBC as its their fault. But I can't see how the HSBC can remove the mark on my file (if there is one)

What can I do? I have sent a complaint to HSBC about this already and am waiting for a reply

Rafter

There is something called the direct debit guarantee and as you are not at fault HSBC should refund you for their mistake - or HSBC will give cahoot a call and tell them to stop being so pedantic!

As for the credit file, Cahoot should remove the mark, given it is not your fault and as the DD worked fine in the first month of the transfer. Sounds like passing the buck to me.

My advice. Wait. See what HSBC do in response to your written complaint to them. If unsatisfied, lob a complaint to Cahoot saying that you don't care whose mistake it was but it certainly wasn't yours and that you want cahoot to remove any late payment record from your file and record at reference agencies and to claim the late payment charge direct from HSBC.

R.