Direct Debit Technicalities

Hi all, I have searched the forums and cannot find a similar problem.

Heres the story...

About this time last year I worked for a company and was posted overseas (this was what I signed up for). The company agrees to provide overseas employees with certain services (accommodation, food, medical insurance etc). For this to be provided I was asked to sign a contract for it. The contract stated the amount I was supposed to pay monthly by direct debit. It did however fail to explain was the conditions of the ‘direct debit guarantee’.

As a new money saver I was looking at my statements over the past year and realised for the five months I worked for the company I was paying £120 more than the amount stated on the agreement. I contacted the company who explained that the reason; my salary was increased to fit in with local regulations so they had to take more off me for the services.
Is this a breech the of the direct debit guarantee? And if so what would I have to do to get a refund of the amount overpaid? Its also worth noting that it is ‘not possible to terminate the contract during the season’.

Thanks in advance if anyone can help!

Lens

Comments

  • dunstonh
    dunstonh Posts: 116,040
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    Is this a breech the of the direct debit guarantee?

    They have to notify you at least 10 days in advance of any amount change. So, technically, it is a breach.
    And if so what would I have to do to get a refund of the amount overpaid?

    Go the bank. Show them the information that says the amount you thought you were paying and tell them the amount they have been taking.
    Its also worth noting that it is ‘not possible to terminate the contract during the season’.
    Reclaiming on the direct debit guarantee does not get you out of the contract. It just leaves you in arrears with them for which you would still be liable to pay and possibly penalties as well or even court action against you for non payment.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Thanks for your reply
    dunstonh wrote: »
    Reclaiming on the direct debit guarantee does not get you out of the contract. It just leaves you in arrears with them for which you would still be liable to pay and possibly penalties as well or even court action against you for non payment.

    The main issue though is that the amount on the contract was changed without notice. Does this mean the amount still needs to be paid despite not being able to opt out of it, and therefore forced to pay a greater amount? I still do not have a copy of the contract stateing the amount they were actually taking.
  • dunstonh
    dunstonh Posts: 116,040
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    Does this mean the amount still needs to be paid despite not being able to opt out of it, and therefore forced to pay a greater amount?

    That is between you, them and a court if you or they go down that route. The direct debit system and guarantee has only to do with the method of payment. It has no impact on any contracts.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • jamesd
    jamesd Posts: 26,103
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    Lens, the increased amount is because they were paying you more money, right? So do you really want to get back to the original lower money paid to you and lower amount deducted from salary? I expect that the company would be happy to pay you or have you pay them the difference between salary minus the original amount and higher salary minus the higher amount. If this is what you want, ask them to do it.

    They should have told you about the changes but it doesn't sound as though they really made you worse off.
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