Direct Debit Indemnity Query

cp33c

Hi All,

I've just been on a slightly strange conversation with my bank, The Co-operative about the Direct Debit guarantee. Basically whilst checking my statement I noticed that 2 payments had come out for the same company which shouldn't have. Basically I had already paid them using Debit card early and then they took 2 direct debits out anyway. So I called the bank and said I wanted to claim under the Direct Debit guarantee. The lady asked me if I'd spoken with the company, which I had. She said to go back to them to ask for a refund. I then said that I had already asked and they said that it would be upto 5 working days which is too long and to go to the bank for an 'immediate refund' under the direct debit guarantee, which was what I was doing. The lady from the bank then explained it would take much longer than 5 days to get the money back as they would have to open an investigation. She then went onto to say that they can't credit my account because the company had already offered a refund!

Now I would have accepted this if this was my first time of having to do this, however I used to have an account with HSBC prior to BR and have had to do an indemnity before, which was credited literally whilst I was on the phone and not once did they tell me to go and get a refund!

Have The Co-op got it wrong? or is it really quicker for me to ask for a refund?

jambosans

Go back and quote them this section from the Direct Debit Guarantee:-

If an error is made in the payment of your Direct Debit, by the organisation or your bank or building society, you are entitled to a full and immediate refund of the amount paid from your bank or building society.
– If you receive a refund you are not entitled to, you must pay it back when the organisation asks you to

The investigation (i.e. Indemnity) is done after the refund, and you should not be left out of pocket while Co-Op investigate. The reading of the Guarantee clearly indicates the refund is a temporary credit given until any investigation is completed. Therefore telling you the refund is applied after an investigation is completed is wrong.

olly300

cp33c wrote: »

Have The Co-op got it wrong? or is it really quicker for me to ask for a refund?

As Jambosans says.

Unfortunately bank staff in many banks spread untruthful information about the Direct Debit Guarantee. Next time staff give you this rubbish ask them for their name, write it down, and state you will be making a formal complaint about the information they have given you.

magpiecottage

Most bank staff say the wrong thing because they are ignorant - not because they are dishonest.

It is not really their fault they are ignorant - the FSA expects institutions it regulates to use staff who are competent but there are lots of rules and training is timeconsuming and expensive - it is also difficult to remember everything.

So don't make a complaint against the individual - simply say you wish to make a complaint and they must now either resolve the matter to your satisfaction by the end of whatever the next working day is (Monday if it is a Friday, for example) or refer the matter to their compliance officer to be dealt with under the FSA's dispute rules - and those rules say you do not have to put the complaint in writing.

cp33c

Thanks everyone. I thought she was wrong. The way she was talking to me was as though I was the one at fault because I paid them early with a debit card!! I'll give 'em a call again tomorrow, because this takes the yellow watery stuff.:mad:

agsnu

magpiecottage wrote: »

Most bank staff say the wrong thing because they are ignorant - not because they are dishonest.

If they are ignorant, they should admit that they don't know the answer and go and check. Either by asking managers or looking on their intranet. Just because they don't know the answer doesn't mean it's acceptable to fob off the customer.

exel1966

Customer service staff that know the ins and outs of accounts and banking functions ? Surely not, they won't hit their sales targets and get their bonuses for knowing such information will they !

Back to the the good old days then when a Bank manager/staff member used to be an upstanding member of the community and when service was more important than flogging a new account !

Ok, so I was dreaming !

As for the OP, paying by other means before a DD is due out will NOT stop the DD being taken, that's standard. Many companies require at least 7 working days prior to stop the automatic DD.