How can they reinstate a dd when i have changed banks?

colly2218

I had a home insurance policy with ASDA, and i paid monthly dd from my Barclays account. Halfway through the year I swapped to an Alliance and Leicester account and changed all of the dd's across to this new account. When my insurance came up for renewal I changed to a cheaper comapny, cancelled the dd and wrote to ASDA to notify them. End of story.
This morning i got a letter from Asda saying i owed them £18 in arrears and a £50 admin charge for a cancelled policy. Having phoned them they said they didn't receive the cancellation letter, and had taken payment up until November when the payment was refused.
It turns out that having cancelled the dd with Alliance and Leicester they had since taken the money again from Barclays for 2 months. Until the account was officially closed in November, How can they do this?
I am trying to find out if I incurred any charges for the dd's which were paid through Barclays as there was no money in the account (1800 overdrawn!)
What come back do I have, and surely this can't be legal?:mad:

HouseHuntr

colly2218 wrote: »

I had a home insurance policy with ASDA, and i paid monthly dd from my Barclays account. Halfway through the year I swapped to an Alliance and Leicester account and changed all of the dd's across to this new account. When my insurance came up for renewal I changed to a cheaper comapny, cancelled the dd and wrote to ASDA to notify them. End of story.
This morning i got a letter from Asda saying i owed them £18 in arrears and a £50 admin charge for a cancelled policy. Having phoned them they said they didn't receive the cancellation letter, and had taken payment up until November when the payment was refused.
It turns out that having cancelled the dd with Alliance and Leicester they had since taken the money again from Barclays for 2 months. Until the account was officially closed in November, How can they do this?
I am trying to find out if I incurred any charges for the dd's which were paid through Barclays as there was no money in the account (1800 overdrawn!)
What come back do I have, and surely this can't be legal?:mad:

Why do Trolls tend to end their stories with "surely this can't be legal?:mad:"

AbbeyDhabi

Did you cancel the direct debit with barclays? If not, they can (but shouldn't) ask for it through them. Now, assuming you are correct in saying you cancelled the policy with ASDA, then they can't collect the payments and you can claim under the direct debit guarantee for all payments wrongly taken.

It's the same if you just cancelled with Barclays. Once a direct debit is cancelled with a bank, it can't be re-instated by the originator without your authority. However, once you point out the error, the bank is obliged to refund immediately and then investigate. If it turns out there was no error, the money is taken back out.

To sum up, speak to Barclays, claim under the DD guarantee and, assuming you are correct, the money will be reclaimed and you'll have no more worries.

In theory.

td_007

colly2218 wrote: »

I had a home insurance policy with ASDA, and i paid monthly dd from my Barclays account. Halfway through the year I swapped to an Alliance and Leicester account and changed all of the dd's across to this new account. When my insurance came up for renewal I changed to a cheaper comapny, cancelled the dd and wrote to ASDA to notify them. End of story.

Canceling the dd will not cancel the insurance policy if the renewal notice said something along the lines of "you do not need to do anything if you wish to continue." Is this the case?

Pete*G_4

HouseHuntr wrote: »

Why do Trolls tend to end their stories with "surely this can't be legal?:mad:"

sorry but I'm confused, is every new poster now considered a troll?

Hazzanet

Pete*G wrote: »

sorry but I'm confused, is every new poster now considered a troll?

No; but I myself also get irked by posts ending "Surely that's not legal" when the crux of the matter is either the OP failed to read the terms and conditions or they didn't ask the right questions when they signed up for something (which actually doesn't seem to be the case in this instance).

Follow their complaints procedure, and I believe all will be sorted fairly quickly.

colly2218

Hazzanet wrote: »

No; but I myself also get irked by posts ending "Surely that's not legal" when the crux of the matter is either the OP failed to read the terms and conditions or they didn't ask the right questions when they signed up for something (which actually doesn't seem to be the case in this instance).

Follow their complaints procedure, and I believe all will be sorted fairly quickly.

I did follow all of the procedures, writing a letter, cancelling dd etc. Didn't realsie a bank can change the dd to another account without my permission.
PS I am not a "TROLL" just someone after some advice, who thought this might be the best place to get it.
Thanks to anyone else who did help.

colly2218

HouseHuntr wrote: »

Why do Trolls tend to end their stories with "surely this can't be legal?:mad:"

I take offence to being called a troll. I am just another person struggling to understand the Uk banking system. I thought i had followed all of their procedures with letters, cancelling dd's etc. How was I to know they can move the dd to another defunct bank account?

Hazzanet

colly2218 wrote: »

I did follow all of the procedures, writing a letter, cancelling dd etc. Didn't realsie a bank can change the dd to another account without my permission.
PS I am not a "TROLL" just someone after some advice, who thought this might be the best place to get it.
Thanks to anyone else who did help.

I never said you were a troll; just that I was irked by certain things and that this did not apply to you as you had followed procedure.

In response; did you use an account switching process when you moved to A&L? If so, chances are, for some reason, A&L passed on the new account details via Asda's ADDACS report and the DD was noted as live again.

You need to follow Asda's complaints procedure again, stating that it would appear that your initial notice of cancellation was either not received, ignored, or lost. Keep pressing your point until they give in, which they will eventually.