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Direct Debit Guarentee
RichFog
Posts: 10 Forumite
Hi guys
I have a thread on mobile phones section, but want greater clarity on a point regarding direct debits.
My girlfriend has been landed with a huge phone bill after having her phone stolen abroad. Anyway, the day after we received the bill (and 13 days before the payment date) I spoke to the phone company and they agreed to delay the payment while we spoke to the insurance company to see if she was covered. They agreed to delay the payment which comes out via direct debit for a month and roll it onto her next months bill to allow us time to sort it out. 2 weeks later and we're still trying to sort it out, but the direct debit has been taken. This has not only taken the small amount of money that was in the account, but also the entire overdraft and more!
No doubt there will be overdraft charges and interest etc to follow. But our intital aim is to get this money back that they have taken. THe phone company send us to the bank and the bank send us to the phone company, and everyone within the phone comapny tells us something different. THe phone company have admitted this payment was taken as an error on their behalf but as "it was owed to them" they are now saying there is no way we'll receive this money back (even if just for 1 month).
However reading the direct debit guarentee it says:
If any payment is made in error, you should contact your bank who are responsible for giving you a full and immediate refund - even if the original error was made by the organisation collecting the payment.
DOes this mean that if she quotes this to the bank that they will be forced to refund her money (even if only for one month)? And what about the charges and interest as it was taken out yesterday so will already be accruing interest. Any help would be much appreciated!
I have a thread on mobile phones section, but want greater clarity on a point regarding direct debits.
My girlfriend has been landed with a huge phone bill after having her phone stolen abroad. Anyway, the day after we received the bill (and 13 days before the payment date) I spoke to the phone company and they agreed to delay the payment while we spoke to the insurance company to see if she was covered. They agreed to delay the payment which comes out via direct debit for a month and roll it onto her next months bill to allow us time to sort it out. 2 weeks later and we're still trying to sort it out, but the direct debit has been taken. This has not only taken the small amount of money that was in the account, but also the entire overdraft and more!
No doubt there will be overdraft charges and interest etc to follow. But our intital aim is to get this money back that they have taken. THe phone company send us to the bank and the bank send us to the phone company, and everyone within the phone comapny tells us something different. THe phone company have admitted this payment was taken as an error on their behalf but as "it was owed to them" they are now saying there is no way we'll receive this money back (even if just for 1 month).
However reading the direct debit guarentee it says:
If any payment is made in error, you should contact your bank who are responsible for giving you a full and immediate refund - even if the original error was made by the organisation collecting the payment.
DOes this mean that if she quotes this to the bank that they will be forced to refund her money (even if only for one month)? And what about the charges and interest as it was taken out yesterday so will already be accruing interest. Any help would be much appreciated!
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Comments
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Tell your bank to do a Direct Debit indemnity for "amount not yet due".
The bank should refund the money to your account within 2 working days.
You had made arrangements with the mobile phone company to delay the payment so the amount was not due to be debitted.I beep for Robins - Beep Beep
& Choo Choo for trains!!0 -
Thanks Ben. I think its with Nationwide which is actually a Building Society, is this likely to take longer?0
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Do you have this in writing?I spoke to the phone company and they agreed to delay the payment while we spoke to the insurance company to see if she was covered.Conjugating the verb 'to be":
-o I am humble -o You are attention seeking -o She is Nadine Dorries0 -
No, they agreed over the phone that it would be rolled over onto her next bill, and they can see notes on their system saying that they agreed to this, but I dont think we havent received anything saying it in writing.0
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Tell your bank to do a Direct Debit indemnity for "amount not yet due".
The bank should refund the money to your account within 2 working days.
You had made arrangements with the mobile phone company to delay the payment so the amount was not due to be debitted.
You mean Direct Debit Guarantee Scheme. The one that gives the customer a full and immediate refund.
The Indemity scheme is what the bank uses internally to get the money back (and can take days). Unfortunately, some banks like to confuse the two and offer the Indemnity scheme to customers (so they don't have to pay out???)0 -
Yes, under the DD guarantee, she would be entitled to a full & immediate refund of the the money as it was taken in error. The bank should refund the amount, they will then inform the phone company that the payment rejected & will show as outstanding on her bill, hopefully then they can hold it off for her while you sort this out.
Just to add, I had a payment taken on a Saturday which was meant to go out on the Monday. I called the bank, who tried to fob me off & say that they always take Monday's payments on a Saturday! (since when???) I was having none of it, so they agreed to refund the DD, but I did have to wait until Monday as it was the weekend.0 -
Yes, under the DD guarantee, she would be entitled to a full & immediate refund of the the money as it was taken in error. The bank should refund the amount, they will then inform the phone company that the payment rejected & will show as outstanding on her bill, hopefully then they can hold it off for her while you sort this out.
Just to add, I had a payment taken on a Saturday which was meant to go out on the Monday. I called the bank, who tried to fob me off & say that they always take Monday's payments on a Saturday! (since when???) I was having none of it, so they agreed to refund the DD, but I did have to wait until Monday as it was the weekend.
Natwest/RBS by any chance?
The opposite holds true as well. Any payments due in on a monday will be available to draw on a saturday. All to do with the old practice that Saturday and Sunday are not banking days. Works for bank holidays as well - so anything due to go in/out on a Tuesday following a bank holiday will again show on Saturday. The transactions in question will show on statements as going out on the correct dates though
Regarding the DD's as I posted on another thread, even if it debits on a Saturday, as long as the funds are there by close of business monday (or Tuesday if a bank hol) it will still go through fine
Anyway I've drifted this thread off on a tangent so will allow it to return to topic0 -
Natwest/RBS by any chance?
The opposite holds true as well. Any payments due in on a monday will be available to draw on a saturday. All to do with the old practice that Saturday and Sunday are not banking days. Works for bank holidays as well - so anything due to go in/out on a Tuesday following a bank holiday will again show on Saturday. The transactions in question will show on statements as going out on the correct dates though
Regarding the DD's as I posted on another thread, even if it debits on a Saturday, as long as the funds are there by close of business monday (or Tuesday if a bank hol) it will still go through fine
Anyway I've drifted this thread off on a tangent so will allow it to return to topic
Yes Natwest LOL. I don't mind the early credits,
but early DD's are a big no-no with me!! :rotfl: 0 -
but early DD's are a big no-no with me!!
As they always do this (see multiple earlier threads) ...... and the DDs were dated for the Monday .......so they agreed to refund the DD, but I did have to wait until Monday as it was the weekend.
....... how would that work? And if you have talked them into refunding .... and the DDs are for Insurances / Mtge etc ........... you've just created yourself a load of problems for absolutely £zero benefit.If you want to test the depth of the water .........don't use both feet !0 -
As they always do this (see multiple earlier threads) ...... and the DDs were dated for the Monday .......
....... how would that work? And if you have talked them into refunding .... and the DDs are for Insurances / Mtge etc ........... you've just created yourself a load of problems for absolutely £zero benefit.
No, it was for a one-off payment. I didn't have the money on the Saturday to pay it out, the money was going to be paid in on Monday. The money was actually taken from the account on the Saturday leaving me withdrawn - for which I would have incurred charges - therefore I got it reversed & paid the one off payment by debit card on the Monday when it was due.
My DD's always come out on the day they are due, & have never come out on a Saturday in all the 10 years or so I have been with Natwest.
If it was an ongoing DD then obviously there is no point reversing it only for it to go back out on the Monday:think:0
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