MBNA took direct debit despite balance paid off, can I claim the bounce fee?

RyanONeill1970

I just had a text message from Amazon / Bank of America / MBNA to say that a direct debit payment to my Amazon card had been returned unpaid. It suprised me as I'd already paid the previous months balance in full via debit card and they should not have been collecting it.

I paid on the 6th of August, they attempted to take further payment on the 12th. The DD bounced, therefore costing me £30 and when I called MBNA they had the cheek to say that there was another another £12 charge from them for the bounced payment! :mad:

I've gotten them to waive this charge as they accept that I had already paid in full. They said they won't pay the £30 DD bounce though as it is in their terms that the direct debit will go ahead as of the statement date, even if paid weeks in advance of the DD date. How could I be sure how much to pay if I did not have my statement anyway?

Is this right? I paid, in full, well in advance and got shafted for £30 + £12 + stress. I've recovered £12 but I'm still stressed and down £30.

I've got a complaints address, but should I even bother if this is in the terms? I've never heard of it before and it sounds like a scam to get hold of client money when none is owed.

Hoping someone can help with this idiocy

Ryan

Premier_2

The originator (the organisation that collects the money) is required to give you advance notice of any collection, the date on which it is to be collected and the amount.

That advance notice, by default, is 10 working days plus postal time (although this can be reduced by prior agreement). Of course, should the company take the same amount regular (e.g. £10 on the 5th of every month), then one advance notice stating this will cover all future collections.

The other problem that would occur by paying the full amount close to the collection date is that it typically takes 4 working days for any payment to reach your account, and the BACs file for collection by DD is usually submitted about 4 working days before collection ... so the BACS file containing the instruction to collect from, you would have probably been submitted before payment had reached your account.
(this is a bit academic in this case as it appears the policy of the originator is to start compiling that BACS file on the date the statement is generated anyway)

What you should do in such circumstances is as follows:
As you say, you don't know how much you need to pay until you receive your statement.
Ensure funds are in place to settle the DD collection you have been provoided notice of.
If that amount to be collected by DD isn't the full amount of what is owed, but you wish to settle the bill in full, then pay the difference between what you owe and the amount they will collect by DD by other means.

Unfortunately, you can't legitimately claim back the bank fees you say you suffered as a result of the failed DD, as it does appear you were informed in advance of the collection date the intention to collect, the amount and the date of that proposed collection. (Even if you do claim and get a refund, this may be reversed later when the originator counter claims because of the above reasons)

HTH. Please post again if you require further clarification or help on this.

RyanONeill1970

Thanks, I understand. Still a shoddy way to do business.