Direct Debit - Our Rights

ConfusedDave_2

Hi there,

Would love some help please.

I had a direct debit set up for the 1st of June and was informed on the 12th of May that it was in place, the money would be taken and the amount would be £29.03.

Sweet!

Only, they didn't take £29.03, they took £72.02!

I contacted them and they said "error on our part" and that somebody would contact me, however, this does not help me this month and I am now likely to go overdrawn on my account because of this.

I feel like I have been robbed! Can they really just go into my account and take whatever they like?

Dave

onlypaddy

They have already told you that it is a mistake on their part. They will refund you the difference and if they dont then you can claim it through the Direct Debit guarantee. If you incur charges then they may be liable for those too if you provide evidence that it was their fault. Have you spoke to your bank?

zppp

ConfusedDave wrote: »

Hi there,

Would love some help please.

I had a direct debit set up for the 1st of June and was informed on the 12th of May that it was in place, the money would be taken and the amount would be £29.03.

Sweet!

Only, they didn't take £29.03, they took £72.02!

I contacted them and they said "error on our part" and that somebody would contact me, however, this does not help me this month and I am now likely to go overdrawn on my account because of this.

I feel like I have been robbed! Can they really just go into my account and take whatever they like?

Dave

Contact your bank asap and ask them to recall the DD. Alternatively, they will be able to raise an indemnity while it is being looked into, which means the bank should immediately credit the funds back to avaoid charges.

JohalaReewi

You need to contact your BANK and request a full and immediate refund under the direct debit guarantee because the supplier took more than they were entitled to. Your bank might give the impression that the direct debit guarantee scheme doesn't apply to them so you might need to persist / escalate the request.

http://www.bacs.co.uk/Bacs/Consumers/DirectDebit/Pages/DirectDebitGuarantee.aspx

http://www.thesmartwaytopay.co.uk/family-life/direct-debit-guarantee.asp

ConfusedDave_2

Brilliant, Thanks!

I contacted the bank and they advised me that as the company is dealing with this I should wait on their response.
If it does cause me to go overdrawn then they also said I should put a claim into the company.

Thanks for the advice folks, feel a bit better now and nothing got broken after my earlier rage!

Mk14:37

Sometimes banks will try to fob you off and send you back to the company - don't let them do this! As per the above advice, you have the right to a refund from your BANK.

Mark_In_Hampshire

Not Sky, by any chance, is it...

Yes, go back to the bank and have it refunded. The bank have to refund you, although of course they'd prefer not to be involved.

Shoulf there be two separate debits totalling that amount, make sure you're clear on which one needs refunding. If it's one amount, then technically, you're stuffed - you can have the debit refunded, yes, but you'll then be in breach of contract to the payee as you didn't pay the amount that was actually due; you paid nil.

So in this event, what the payee would prefer is to overcharge you, keep the overpayment for themselves, and show it as a credit on your account. If one debit only, you will need to fire off an immediate "Faster Payment" for the amount actually due should you opt to have it reversed.

However to answer your other point: yes, you have told the payee they can take unspecified amounts from your account on unspecified dates. That's the nature of direct debit.

The payee is meant to inform you in advance of changes to the date or the amount, though they do not need to give you any specified notice period - it depends on the payee, so you need to read what the direct debit mandate/terms and conditions are.

However since they have admitted their error, get the refund from the bank and then drop the payee an email to let them know

1. You've been told it was incorrect/admission of error
2. You've had £X refunded by the Bank
3. You have paid £Y as a Faster Payment to s/c xxxxxx ac/no xxxxxxxx today
4. You expect (whatever you want: an apology, an explanation, an assurance it won't happen again etc)

jonesMUFCforever

Just remember one thing - if the whole D/D is refunded then you have not made a payment this month to the beneficiary (even if what they took was a mistake) so expect a charge at that end as well.

coolesticeking

I love this so called Direct Debit Guarantee where the bank is meant to be on our side should as per this example the wrong amount has been taken.

They just wan't to fob us off and blame the company instead of trying to help.. Not much of a Guarantee really when you have to keep forcing the issue and plenty of threads regarding reclaiming money back from Direct Debits..

Hope you do get it sorted once and for all!

JohalaReewi

ConfusedDave wrote: »

Brilliant, Thanks!

I contacted the bank and they advised me that as the company is dealing with this I should wait on their response.
If it does cause me to go overdrawn then they also said I should put a claim into the company.

I did warn you that the bank might try to suggest the DD guarantee doesn't apply and sure enough they have. Get back on to them and say no thanks but the DD guarantee says the BANK have to give you a FULL and IMMEDIATE refund. Check the links I gave you too. No waiting. Nothing to do with the supplier. It is the BANK who have to pay you back.
They are the guarantor.

Obviously the supplier will then contact you for payment but you can send them a cheque or something. Best to get the money back ASAP to avoid bank charges etc...