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

PC_Gabriel_Kent

Im sure that if you cancel a DD to a company that you owe money to then the company can reinstate that DD if you do not cancel the DD with the company. The bank wont refund you anything as the issue is you and the company.

CAB have told you to cancel the DD without telling the company so in effect you have knocked the company and basically when they realise this to go swing?

dzug1

The DD guarantee doesn't apply - neither the bank nor the company have made an error.

You have to tell the company you are cancelling the DD authorisation - otherwise they still have a valid DD

pippitypip_2

While I have no experience of this, the direct debit guarantee does state "You can cancel a Direct Debit at any time by simply contacting your bank or building society."
So if you did so and the bank still paid it out, I think surely you do have a case with the bank. You ought to notify the company too, but that aspect is not a mandatory part of the dd guarantee scheme.

I've cancelled dds before and they have not been paid. End of. But as I said earlier, the payday loan people will also have your bank card details and there's no way to cancel that unless you remove funds from your account, then set up a payment plan with them.

If you do get the money back, you'll need to make sure that only the amount you agree by plan is there for them to take, as they'll keep trying your card to claw back whatever they can. Always keep everything in writing.

pippitypip.

System

If the customer says there is an error, the bank branch must arrange an immediate refund, no questions asked. It is then up to the payee to contact the customer to demand payment by other means, if the payee believes it is in the right. Whether the payee is in the right is not a matter for the bank to enquire into, or comment on.

The payee can, in practice, sneakily set up a cancelled direct debit again. That is a plain abuse of the DD system, and the customer should demand that the payee is struck off the list of authorised direct debit takers.

I suggest that this forum should post a standing link to this explanation from the Financial Ombusdman:
http://www.financial-ombudsman.org.uk/publications/ombudsman-news/27/27-directdebit-guarantee.htm

System

To cancel a direct debit you only have to tell your bank or building society. It is courteous also to tell the payee. However, the bank is supposed to notify the payee in any case.

JohalaReewi

PC_Gabriel_Kent wrote: »

Im sure that if you cancel a DD to a company that you owe money to then the company can reinstate that DD if you do not cancel the DD with the company. The bank wont refund you anything as the issue is you and the company.

Not true. You can cancel a DD at any time by contacting your bank. The company are not allowed to just reinstate it.

JohalaReewi

dzug1 wrote: »

The DD guarantee doesn't apply - neither the bank nor the company have made an error.

You have to tell the company you are cancelling the DD authorisation - otherwise they still have a valid DD

Not true. You can cancel a DD by contacting your bank. Because the company reinstated the cancelled DD puts them in the wrong. The bank allowing a cancelled DD to be reinstated puts them in the wrong. The DD has been paid in error and is fully covered by the DD guarantee scheme.

However, the OP will have a job getting the overdraft fees back. Payday aren't going to cough up and the Halifax are (in)famous for trying to claim that the DD guarantee scheme doesn't apply to them (got the T shirt myself).