Nationwide charging for Direct Debit transactions which didn't take place

stella41b

Can anyone give me any advice? Please accept my apologies as this is a bit complicated.

I'm on Income Support due to long term health issues but for a period of four months last year the DWP unfairly suspended my claim leaving me without any income over this period. However I had monthly payment plans set up for gas, electricity, water and BT which I had to stop eventually but Nationwide imposed a £30 bank charge for each direct debit which didn't go through.

I appealed and with the help of my local MP got my benefit back and set up direct debits again for electricity, water and BT. Due to delays in benefit payments some direct debits were missed and again Nationwide charged me £30 for each one.

I managed to pay off most of my outstanding bills (much credit goes to EDF Energy for their understanding and patience) but Nationwide claimed I owed £170 in bank charges and took 100% of my benefit payment into my account against these charges. I arranged an overdraft over 3 months but they cancelled this overdraft after 5 weeks.

Fortunately I received a Community Care Grant for clothing and essential items but it was taken up in bank charges.

My benefit payments were delayed again over a few days, meaning that I missed a couple of more direct debits. I reduced my direct debits to just BT but I noticed a change in how Nationwide handled the direct debits. At this time I have two direct debits with BT, one for my landline and Internet and another for my mobile phone.

Initially they only imposed a charge if a direct debit didn't go through the second time. However this changed and they started imposing a bank charge against any direct debit which didn't go through on the date it was meant to.

I decided to change my bank account as a result of this and opened another account. Whilst I was waiting for this account to set up I pre-empted the direct debit with BT for my mobile, paying the outstanding amount via a pre-paid credit card.

When this new account was set up complete with direct debit arrangements for BT (which were transferred automatically) I sent instructions to Nationwide to close my account.

They refused, claiming that there were £60 outstanding in bank charges and that there was an unauthorized overdraft on my account. These two charges were imposed against both direct debits for BT which I was told were returned. One was for my landline and another for my mobile.

However I had paid my outstanding bill before the direct debit was due. BT also informed me that as I was in credit on my account they did not seek that month's direct debit payment. Basically neither transaction took place, and yet Nationwide charged me for both transactions.

Now this is where we have reached a deadlock. I took the matter up with Nationwide but have hit a brick wall. Whenever I call they inform me about 'terms and conditions' and refer me to their recovery department.

I was told at my local JobCentre that I do not have to pay bank charges as I am on the lowest rate of Income Support. My benefits are paid regularly, my direct debits with BT are going through as instructed and I am happy with my new bank who have told me that if ever I have financial difficulties to get in touch with them for a solution.

I am refusing to pay the bank charges imposed on my Nationwide account but the Nationwide have been adding further charges and maintain that these charges stand and they refuse to listen or look into the matter.

Last week Nationwide contacted me informing me that my account now has a £250 unauthorized overdraft and they are demanding payment prior to referring the matter to a debt collection agency. How has the figure reached £250? They claim that BT have been attempting to take money for the previous direct debits. BT insist they have been taking payments only from my existing direct debits with my new bank and I believe BT.

What I would like to know is the following:

1. Can bank charges be imposed against a direct debit transaction which doesn't take place?

2. Am I really exempt from paying bank charges being on Income Support? The Benefit Delivery Centre says that I am not exempt but my local JobCentre maintains that I am exempt. Is this something which adds more weight to my case?

3. Who should I approach to take up this matter? Should I go to the Financial Ombudsman, a debt management agency, or contact a solicitor?

Thank you for taking the time to read this. Any advice or suggestions would be most appreciated.

natweststaffmember

on the first bit,
1) BT have mislead you since ONLY the direct debit recipient can ask for payment of a Direct Debit(the bank merely makes a decision to PAY or RETURN UNPAID an item presented for payment).
2) What the DWP told is wrong as well because nobody is exempt from charges.
3) You need to follow the processes outlined here and reclaim the charges back.

Goodtimesahead

I heard Nationwide are one of the worst of these Highway robbers, still charging £30 for going o/d is an outrage. Hopefully when these Highway robbers lose in the House of Lords you will cliam back a lot more, back to July 2001. Good luck, their time is running out.

Woodyrocks

All the charges I am claiming back from Nationwide are due to failed DD. They used to charge even more. They make me sick and the fact that they took every single penny of your benefit doesn't surprise me. They have no stinking morals. I hope they are brought crashing down :mad:

Goodtimesahead

Nationwide stink and are living in the Victorian times. You can't even make a payment online from another bank to one of their customers accounts which then takes 3 working days lol wake up NW all other banks etc have agreement with each other so money is credited in an instant. Highway robbers still charging £30 for charges, hope they lose a fortune after the House of Lords decision. Even their house price forecasts are way out each time, they haven't a !!!!!!! clue about anything. Hopeless hasbeans.