Direct Debit Guarantee-not exactly true

unphased

It has always been my understanding that the direct debit guarantee (ddg) offered by the banks is a safeguard for the customer against unauthorised and incorrect taking of the direct debit by creditors. The ddg promises immediate refund of wrongful direct debits.

When I rang my bank on the day I noticed an unauthorised direct debit of £2.50 had been taken from my account I rang the bank to have it refunded. The customer services refused to help saying that I must go in to a local branch to ask for a direct debit indemnity form and they would sort it out in the branch.

So I went in to the local branch, explained the situation, and asked for a refund under the terms of the ddg. I was met with we can't do that because we need proof from the company who have taken the direct debit that it was in error. The branch manager got involved and he supported his minion. After several minutes of loggerheads he went away and came back agreeing that on this occasion he would do it but in future he would require proof.

I am dumbfounded. It is either a ddg or it isn't. My opinion is that the bank staff make up their own rules and the proof of wrong doing is a figment of the branch managers imagination.

During the course of the branch dealing with the refund it transpired that their procedure is to write off any dd below £10.00 anyway so the arguing was pointless in the begining.

noh

My opinion is that the bank staff make up their own rules and the proof of wrong doing is a figment of the branch managers imagination.

Your opinion is correct.
They should refund immediately then seek proof later.

unphased

Thank you noh. Do you think it would be worth formally challenging the bank about this? Clearly they don't know the correct procedure to follow so I am keen to establish that they do in future else I could have a problem if it happens again. There is no reason why it could not be handled over the telephone either. I feel a letter to the head office would be a good place to start.

Chadsman

I would challenege them about their 'procedures'. Often procedures are treated as a good ruse for fobbing off customers hoping they will get bored and not follow through.
There was a similar case on R4 Moneybox a few weeks ago and the Head Office in question admitted they were in the wrong.

JohalaReewi

Report them to BACS.
http://www.bacs.co.uk/Bacs/Consumers/DirectDebit/HelpCentre/Pages/IncorrectPayments.aspx

Sounds like this was Halifax/BOS?

unphased

Yes it was. They have recently had a new branch manager too. Not a good start for him.

JohalaReewi

They do that a lot.

ste_coxy

defo put in a formal complaint against the telephone service you got (this meant you then had to go into a branch and waste more time and then get fobbed off again by incompetent staff) - poor service on all counts!

Mikeyorks

£2.50 is an odd amount for a DD? But - co-incidentally it's the value their provider validates against your account when you sign up to Halifax Secure?

Just musing ??

flyingjock1

As Mikeyorks stated this sounds more like a debit card transaction as opposed to a DD. If it wasnt a DD, then the direct debit guarantee wont apply in this case, thus the dispute would be with the originator of the £2.50 charge. ie halifax secure service.

unphased

The DD was taken by a telephone company with whom I am attempting to resolve a problem. They recently migrated accounts on to a new system which has generated an unbelievable amount of problems with their customers. In my case it was resurrection of a redundant telephone account against which they started issuing £1.25 bills for paper billing. I have written letters and telephoned to no avail so they have set up the DD without my authorisation running in parallel with the legitimate one. Messy but true. Nothing to do with debit card payments.