Cancelled DD, company set it up again, took money and bank won't refund.

happs

I had a direct debit set up to pay back a payday loan. Got into some problems and spoke with the CAB who advised that i should cancel the DD and leave them to negotiate an agreement. The company set the DD up again and pushed me over my overdraft limit with associated charges. I went into the bank and they refused to refund the direct debit.

Am i screwed or do i have a leg to stand on, do the payday loan people have a free reign to open up direct debits and charge my account as they please?

mandi

I would have thought that you are covered under the DD guarantee ,the section that states.

"If an error is made in the payment of your Direct Debit, by (insert your organisation name) or your bank or building society, you are entitled to a full and immediate refund of the amount paid from your bank or building society. "

as you had already canceled , and the new one was set up without your knowledge.

What reason is your bank giving for not refunding you ?

happs

They said they would only give refunds if the company said it was okay to do so and i should chase after them.

They told me it was okay for any company to re-setup direct debits if i owed them money.

Brodiebobs

as stated above if it is a direct debit its covered by the direct debit guarantee.

The bank cant refuse, even if the company are in the right, its between you and the company to resolve.

I'd go back and explain this to your bank, i think a few bank workers are unaware/trained to be ignorant of the guarantee.

BASFORDLAD

happs wrote: »

They said they would only give refunds if the company said it was okay to do so and i should chase after them.

They told me it was okay for any company to re-setup direct debits if i owed them money.

Am sorry to say, but you have been fobbed of!

If you canceled the DD and didnt authorise it to be re set up i would insist on an immediate refund and not leave until you have got it

Which bank was it btw?

happs

Halifax, i figured as much but there isn't much you can do when the staff refuse. I'm going to phone the ombudsman for advise so i can argue my corner with a bit more authority.

mandi

happs wrote: »

They said they would only give refunds if the company said it was okay to do so and i should chase after them.
.

Well that is incorrect . The DD scheme says that it is the banks responsibility to give a full & immediate refund , it is then up to the bank to chase from the company , although I know banks like to try this on .

Personally I would escalate this to a formal complaint with you bank , stress that the DD was set up without your authorization , therefore invalid , and demand a full & immediate refund .


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

happs

Cheers,

I'll give that a shot.

mandi

Good Luck haps , don't let the tell you any different .

As already said you are being fobbed off don't give in . When you call go straight to a supervisor , ask for his/her name , make this a FORMAL complaint with the Halifax , and when you get you refund make another complaint about the way you have been treat .;)

BASFORDLAD

I would go to your branch and not do it by telephone.

Kick up a fuss. You will soon get what you want.

pippitypip_2

happs, a payday loan company will also have your card details. If the bank do refund according to dd guarantee, you need to make sure there isn't any money in your account left for the payday loan company to just take via card payment. You've already authorised them to do this by accepting the loan.

Note cancelling your card will not prevent that from happening. Lots of threads about this happening, people don't realise.

Switch banks and then contact the loan co to arrange a payment plan.

hth,
pippitypip