Bank wont take responsibility help!!

lianne2100

I received my Nationwide bank statement on the 26th October showing that 3 attempts had been made to take a direct debit out of my account however, I did not set this up. Because I did not have the funds in my account I have been charged unpaid direct debit fees of 3 times £30 which means I have been charged £90. I rang the Lloyds bank where the direct debit was meant to be payed too. It turned out someone had set up a direct debit from their Nationwide account but used my account number by accident as they had put 1 digit wrong when applying on line. It was nothing to do with me but Nationwide and Lloyds will not remove the unpaid direct debit fees, neither will take responsibility and it seems there is nothing I can do. So I have a £90 fine which I had nothing to do with and interest will be added. Can you advise or help me to get this resolved.

Flower7_2

What a pain! Looking at it in black and white the LLoyds customer (and therefore Lloyds as far as you are concerned) is at fault, Nationwide weren't to know, however this does show the need for signed direct debit authorities, rather than doing everything by computer.

You need to go to Lloyds and insist on a written explaination of what happened, then go to Nationwide and insist they return your 'unpaid' fees showing them the explaination from Lloyds. If no joy front line customer services people ask to speak to the manager in either/both banks. I used to work for a bank (20 years ago, back in the days when they had staff to check direct debit mandates!) and bank managers aren't scary.

If Nationwide still refuse the only option is to threaten to sue Lloyds for payment through the small claims court and advise that you will also be asking for compensation for reasonable expenses - hopefully this should be enough to sort. other than that it's the financial ombudsman - I'm sure this must have happened before, you can't be the only victim in this age of people sorting out their own banking online..

Best of luck and don't be afraid to exert yourself if no one listens (just don't swear at them!) Especially in nationwide - you could 'loudly' point out that they are supposed to be looking after your money not allowing unauthorised debits to be attempted - what would have happened if you had funds in the account!!!!

Premier_2

Contact your bank and tell them you wish them to make an indemity claim in respect of consequential loss. Don't be fobbed off, your bank must do this if requested.

However, claims for consequential loss are not settled immediately by the paying bank, but only upon settlement by the Originator to the paying bank.

noh

I believe Nationwide should refund the fees.
It was an unauthourised payment.
Their terms and conditions say

Liability for losses
[FONT=Verdana,Verdana][FONT=Verdana,Verdana]51. (a) If we are liable for any losses due to a delay or error by us in carrying out your instructions to make or stop a payment, or for unauthorised payments our liability will be limited to:
(i) the amount of such payment; and
(ii) the amount of any interest you do not receive or any interest and charges you have to pay directly as a result of such delay or error.
If our liability is established we will refund the above amount immediately.

http://www.nationwide.co.uk/pdf/current_account/P9292_FlexTermsConditions.pdf

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natweststaffmember

Premier wrote: »

Contact your bank and tell them you wish them to make an indemity claim in respect of consequential loss. Don't be fobbed off, your bank must do this if requested.

However, claims for consequential loss are not settled immediately by the paying bank, but only upon settlement by the Originator to the paying bank.

The Direct Debit Guarantee Scheme does not allow for this. Surely whether it was mistake or otherwise, it was an unauthorised DD set up on the account and should be dealt with as fraud and therefore refunded since the OP was not the person who set the payment up on the account.

BankReclaimRebel

Get the FOS involved and let them deal with it, one of them will have to refund you imo...

Premier_2

natweststaffmember wrote: »

The Direct Debit Guarantee Scheme does not allow for this. Surely whether it was mistake or otherwise, it was an unauthorised DD set up on the account and should be dealt with as fraud and therefore refunded since the OP was not the person who set the payment up on the account.

Doesn't allow for what? Consequential loss claims? Claims for (attempted) deduction of DD payments without the pre-requisite advance notice?

The deduction wasn't actually made so no immediate refund is due.

The claim for consequential loss is not something the bank is obliged to refund immediately; as i said, it is refunded when the paying bank gets the settlement from the Originator.

natweststaffmember

Premier wrote: »

Doesn't allow for what? Consequential loss claims? Deduction of DD payments without the pre-requisite advance notice?

The payments were bounced so the DD guarantee scheme does not apply. It only applies where the payment has been made. I think Noh has suggested the way forward which I think is the most appropriate ie the charges HAVE to be refunded since the payment authorisation was not one the OP had agreed to.

Premier_2

natweststaffmember wrote: »

The payments were bounced so the DD guarantee scheme does not apply. It only applies where the payment has been made. I think Noh has suggested the way forward which I think is the most appropriate ie the charges HAVE to be refunded since the payment authorisation was not one the OP had agreed to.

An attempt to collect the payment was made. It only bounced because the OP had insufficient cleared funds available to fund them.

If the payments were made, then those payments would indeed be immediately repayable by the paying bank on the request of the payer.

If the DD paymenst were not attempted, there would be no charge for failed attempts. Those charges are consequential losses suffered by the payer because of the actions of the Originator.

The OP should insist the paying bank files an indemtity claim for those consequential losses the payer has suffered.

natweststaffmember

Premier wrote: »

An attempt to collect the payment was made. It only bounced because the OP had insufficient cleared funds available to fund them.

If the payments were made, then those payments would indeed be immediately repayable by the paying bank on the request of the payer.

If the DD paymenst were not attempted, there would be no charge for failed attempts. Those charges are consequential losses suffered by the payer because of the actions of the Originator.

The OP should insist the paying bank files an indemtity claim for those consequential losses the payer has suffered.

The DD guarantee scheme does not have anything about consequential losses. As I have said if you read the username: Noh's post it gives the route I would go with. I would say that it is an unauthorised payment(you could say fraud) which means that nationwide have to refund the charges.

Premier_2

natweststaffmember wrote: »

The DD guarantee scheme does not have anything about consequential losses. ....

So what do sections 2.4, 11.1, 11.7 & 11.9 of The Originators Guide and Rules to the Direct Debit Scheme refer to?

Edit: 11.7 in particular, the one headed Consequential loss?