Forgot to cancel my DD

secretdancer

Where do I stand on this one. I recently completed a remortgage from the Principality BS to the Halifax. According to the solicitors completion was the 8th August but the Halifax account was open on the 2nd. First payment would be taken on the 14th August.

Anyway, I forgot to cancel my old mortgage DD with the Principality which is taken every month on the 14th.

So you can guess what happened next, both the Halifax and the Principality took mortgage payments out. I only noticed today when I checked my bank account (Natwest).

Spoke to the Principality. They said they have to wait for the money to clear and then they can refund. This will be 5 working days from the date of payment. Spoke to Natwest and they can't reclaim the DD as it's too late. Nothing else they can do apparently.

Can I make a DD indemnity claim as the Principality shouldn't have taken the money? Or should I just sit and wait for the money to come back. I know I'm at fault for not cancelling the DD but I did have other things to worry about like the birth of a new baby daughter!

Help appreciated

Wyndham

I think you can only claim on the DD indemnity in situations where you HAD cancelled and they still took the money. I think it is your error (and yes, I know there were mitigating circumstances, congratulations on the birth!) and as it is your error you need to work through the system and that sounds like it takes time. They are at least going to repay it rather than claiming it's now theirs!

AndyR_3

Wyndham wrote:

I think you can only claim on the DD indemnity in situations where you HAD cancelled and they still took the money. I think it is your error (and yes, I know there were mitigating circumstances, congratulations on the birth!) and as it is your error you need to work through the system and that sounds like it takes time. They are at least going to repay it rather than claiming it's now theirs!

This is technically correct, but you could tell a fib to the bank so they think you have a valid DD Indemnity claim, and get the money back for you...not that I'd bother now because the other company will probably refund it anyway, then you'll get a double refund and have to pay them an amount back again.

Mikeyorks

secretdancer wrote:

Spoke to Natwest and they can't reclaim the DD as it's too late. Nothing else they can do apparently.

Assuming everything was settled with Principality - regret the above is nonsense. Where a DD is made in error your Bank, on request, should immediately refund the money under the DD guarantee (not indemnity - which is something different) scheme. And you don't need (although it's wise to) to cancel the DD - as Principality no longer (witness the promise to refund) have the right to raid your Bank account, as you owe nothing.

It's not (Post #2) your error - and you did not have to cancel the DD in order to invoke the guarantee, Indeed - had you cancelled the DD, there is no way the money could have been taken as your Bank no longer held a valid mandate.

However - as just realised it's 9 days since your post - assume the money has now been returned the long way round?