Cancelled DD reinstated by bank!

happyhaddock_2

Thanks everyone and ta PDD:A.

Yes they are just taking it out of the overdraft there are no funds in the account so are basically paying themselves:o, the only thing is it has now pushed me over my OD limit so I'm now open to charges:mad: (I have a Co-op basic account and am on a DMP with CCCS)

I managed to ring my bank and they have advised me that the DD payment will be reversed and I won't be charged for going over the overdraft limit :j, so we shall see what happens on Monday.

Thanks again for the help peeps:)

DVardysShadow

pure_dead_dopey wrote: »

Hi Happy

Hope you are bearing up. If it is a DD they are NOT allowed to reinstate it, you just need to read the DD guarantee. I work with this daily so know this is the case. I'm not so sure about right of offset, I imagine they can only offset from funds and your overdraft is not funds, basically they are only moving your debt around to gain charges if they do it this way. If you feel up to it, complain in person to the branch, because it is outrageous. Alternatively write to complain, this is very dodgy practice and the whole point of the DD guarantee is to protect and give you as the consumer, confidence in the system.
take care and try not to worry about all this too much.

PDDxx

As I said before, it is not helpful to think of this as Direct Debit. But I had not spotted and would totally agree that the right of offset should only apply to positive funds - it should not be used to move debt to where more can be charged. Probably a case to take through the internal complaints and to the Financial Ombudsman.

happyhaddock_2

Thanks DVS yes there was only a small positive balance of less than £10 but the amount they deducted was over a hundred! I shall wait and see what happens tomorrow and see if I get charged before I start to jump up and down, believe me I won't let it go if they're in the wrong.

Ta xx