bank refusing to refund Direct Debits

penfolderoldo

Hi all,

Just noticed yesterday 2 direct debits coming off myb account with the names 'loanfinder' and 'payment guard'. Spoke to the bank to query these and was told they were both set up on 21st May and that I must have applied for a loan.

I replied online to one of those payday loan e-mails (tho not in either of those names), but was rejected. At no time was I asked if I wanted insurance, or to pay upfront for anything. The only way they can have set up the direct debit was using my account details I entered - stupidly now, I realise - to allow them to deposit the funds. Heard nothing more (apart from the dozens of e-mails from other loan companies now!)

Bank (Halifax) are refusing to do anything about it and are saying I need to contact these companies about a refund.

Surely there's some sort of guarantee that stops companies just accessing your account like this and taking my money??

Any help gratefully received!

dunstonh

Halifax are wrong and breaching the direct debit guidelines.

If the company did not write to you to give you a schedule of payments under direct debit then they have broken the d/d rules. Therefore, you have a right of refund under the guarantee scheme and Halifax should refund you. However, if the company go on to prove they did write to you and took payments in line with the agreement then they will debit you back again.

Premier_2

penfolderoldo wrote: »

...Surely there's some sort of guarantee that stops companies just accessing your account like this and taking my money??...

Yes, its the Direct Debit Guarantee

http://www.bacs.co.uk/bacs/businesses/directdebit/collecting/pages/customersrights.aspx

The originator is required to supply the payer with a copy of this (which may be together with the advance notice they are required to supply)

If they haven't, the originator is at fault too ... but the bank will refund you as per the DD guarantee.

the_insider

Although a lot of these loan companies use debit card payments rather than direct debit to avoid just such a situation. Did you give them your card details as well? And does it show as a direct debit on your online banking?

davidgmmafan

If it is a direct debit then Halifax are dead wrong. Doesn't surprise me most bank staff are clueless on this, not thier fault they're just not trained on it you see.

If it is a debit card then that's more problematic, although if its not a legitimate transaction then the bank must have some procedure in place???

If its DD 100% it should be done on an indemnity claim, and if any charges were incurred the company or the bank should sort it out. You shouldn't be out of pocket.