Direct Debit Charges Question

anc

Hi,

I have a business account. I have paid a supplier using Faster Payments, in error they then took the payment by direct debit, I was charged £35.00 for going overdrawn. I rang the bank, they said take it up with the suppplier - as it was not their problem and to pursue the supplier for the charge. I said I thought I was covered under the direct debit guarantee, the guy said no, as it wasn't the banks fault? Where do I stand on this?

Thanks

charlieboycat

There isn't anything in the DD guarantee about bank charges incurred because of an error - the guarantee only relates to direct debit amounts taken/paid in error.

Mark_In_Hampshire

The bank charges are probably unlawful anyway, but that's a separate matter. Those in charge have decided to let the banks get away with it since they lost all that money gambling on lending against the property markets.

However the bank are correct - the DD guarantee does not cover bank fees or consequential losses. Once you hand over your s/c and ac/num to a third party and give them an authority to debit your account, they can quite easily cause you consequential loss and neither the payee nor the bank is responsible. You might want to evaluate whether direct debit is a good idea.