Direct Debit Rules & Guarantee

medw1974

Can anyone advise me how I stand on the following issue?

I signed up online with Setanta Sports on the 29th July and agreed to pay my subscriptions by direct debit.

I have just checked my Co-op bank account online and have been charged because setanta attempted to take a DD payment yesterday.

I phoned the bank to say I thought the charge was unfair because Setanta had not informed me of when they would be taking payment but they said there was nothing they could do and I should contact Setanta.

So I phoned setanta who said they could take payment anytime during the 1st month, also said that I had been sent a letter telling me when my 1st payment would be taken but it transpires that this letter was only sent yesterday.

Am I right in thinking that they have breached the DD Guarantee by not giving me notice of when they intended to seek payment and what can I reasonably do in this situation.

Thanks in advance.

grumbler

medw1974 wrote:

...they said there was nothing they could do and I should contact Setanta.

This was a lie.
Q What is the Direct Debit Guarantee?

A.
....
If an error is made by the organisation or your bank or building society, you are guaranteed a full and immediate refund from your branch of the amount paid.
....

Q Who actually controls Direct Debit payments?

A. The bank or building society that holds your account is responsible for all aspects of the running of that account. They are therefore answerable for all payments, including those made by Direct Debit.

Q How do I get back any money paid in error?

A. If any payment is made in error, you should contact your bank or building society who are responsible for giving you a full and immediate refund - even if the original error was made by the organisation collecting the payment.

medw1974 wrote:

So I phoned setanta who said they could take payment anytime during the 1st month, also said that I had been sent a letter telling me when my 1st payment would be taken but it transpires that this letter was only sent yesterday.

No, they cannot do this.
Q. What is Direct Debit?

A. Direct Debit is a simple, safe and speedy way to pay regular bills and subscriptions automatically from your bank account. You agree with the organisation the amount to be collected and the date of payment. From then on the amount will be deducted from your account on a regular basis. The organisation can only take the agreed amount. If they need to change the amount or collection date, they have to notify you first.

Q Once it is set up, do I have to do anything?

A. No, other than making sure you have sufficient funds in your account when the payment is due. To assist with this the organisation will give you advance notice of the collection dates and amounts, whether you set up a Direct Debit by the telephone, Internet or by completing a paper Direct Debit Instruction. ...

Q What if changes are needed?

A. If either the amount you owe, the frequency or the payment date changes, the organisation concerned has to notify you in advance (normally 10 working days) of your account being debited. This gives you time to get in touch with them if necessary.

Period different from 10 days must be stated in the DD insruction that you have signed.

Am I right in thinking that they have breached the DD Guarantee by not giving me notice of when they intended to seek payment and what can I reasonably do in this situation.

Your bank have breached the DD guarantee by refusing to interfere. The company breached it by taking money without advance notice.

YorkshireBoy

medw1974 wrote:

Am I right in thinking that they have breached the DD Guarantee...

They 'may' have done so, but without knowing the full facts, T&C's, etc, it's impossible to say so with any degree of certainty.

Take a look at http://www.bacs.co.uk/BPSL/directdebit/generalpublic/ and in particular, the 'FAQ' and 'Your Rights' sections.

You may also wish to search the BACS site for AUDDIS.


EDIT: Welcome back grumbler!

amandathepanda

Your bank should be able to give you a copy of The DD indemnity scheme leaflet, as all banks should have them. The bank will try and get you to obtain a refund from Setanta as it is less work for them, but just show them the part in the leaflet that says you should get a full and immediate refund, and they won't have a leg to stand on.

YorkshireBoy

amandathepanda wrote:

Your bank should be able to give you a copy of The DD indemnity scheme leaflet...

The OP doesn't need to concern him/herself with the 'indemnity'.

The direct debit 'indemnity' will be used by the bank to reclaim it's costs back from the DD originator.

Put simply, the Co-op will reimburse the customer under the 'guarantee' and then claim this back from Setanta under the 'indemnity'.

JohalaReewi

medw1974 wrote:

Can anyone advise me how I stand on the following issue?

I signed up online with Setanta Sports on the 29th July and agreed to pay my subscriptions by direct debit.

I have just checked my Co-op bank account online and have been charged because setanta attempted to take a DD payment yesterday.

What have you been charged? Has the direct debit been charged to your account, or has the direct debit been rejected and you have been charged a penalty fee?

I phoned the bank to say I thought the charge was unfair because Setanta had not informed me of when they would be taking payment but they said there was nothing they could do and I should contact Setanta.

If the direct debit was charged to your account, this is not correct. The BANK should refund the direct debit. If this is about a penalty fee due to a refused direct debit, this is a grey area. The guarantee says "If an error is made by the organisation or your bank or building society, you are guaranteed a full and immediate refund from your branch of the amount paid." However, some naughty banks claim that the DD hasn't been paid - it was a penalty fee so they don't have to refund it.

So I phoned setanta who said they could take payment anytime during the 1st month, also said that I had been sent a letter telling me when my 1st payment would be taken but it transpires that this letter was only sent yesterday.

While they can take the amount anytime they like, under the DD guarantee scheme, they have to tell how much they are going to take and give you reasonable notice (at least 10 days is recommended). Seems like Setanta have been lax.

Am I right in thinking that they have breached the DD Guarantee by not giving me notice of when they intended to seek payment and what can I reasonably do in this situation.

Thanks in advance.

The answer is yes, Setanta have breached the DD guarantee by applying the DD before you had been given reasonable notice. However, if your bank rejected the DD due to lack of funds and charged you a penalty fee, then you should take some advice. I suggest you contact the BACS people. Say you want help as a consumer with a claim under the direct debit guarantee scheme.

Contact details (phone number):-

http://www.bacs.co.uk/BPSL/directdebit/contactus/gettinghere/

inmypocketnottheirs

I have had the same situation with the Co-operative Bank (oxymoron there if ever there was one). The Co-op do not understand the DD Guarantee. If you dispute the payment, they should immediately refund the amount claimed. However it is not their responsibility that the direct debit was claimed erroneously, and you must therefore seek redress from Setanta if their incorrectly applied direct debit resulted in you getting charges from the Co-op. Notwithstanding the fact, that these charges are unlawful, and that you will get them refunded. Take a look at https://www.consumeractiongroup.com about how to get these bank charges refunded.

HTH

regularsaver1

were the funds actually taken out of the account? - as the bank may not have paid the dd - but charged a fee as the funds were not there. if the funds were not taken out then the dd guarentee can;t be used can it?