Unpaid direct debit charges on a zero balance

maggie63

Hi everyone

I'm hoping someone can give me advice on what to do here.

I paid off a Virgin Credit Card balance in full on 27th August. I cancelled the direct debit with my bank (Lloyds TSB). On the 9th September Virgin tried to take money via direct debit (even though the balance was 0) which was returned by the bank and have now sent me a statement charging me £12.00 for an unpaid DD and interest charges of over £3! I rang them and they told me I should have cancelled the DD with them and I broke the terms & conditions of my account by not doing so. I am livid to say the least and I have refused to pay it. I asked to speak to a manager but I'm still waiting for a call back.

I have never had to cancel a DD with the company, I've always done it via my bank and never had any problems like this before.

Does anyone have a similar experience? This is a complete rip-off, and I want to know if it's worth pursuing with the Ombudsman if they don't cancel the charges.

Thanks
Maggie

pinkarsenalprincess

What does it say in your terms and conditions?

CLAPTON

assuming you were not in the habit of paying in full each month, and then you paid in full on 27th august, then there would have been some (residual) interest due in the september statement .. possibly your £3
so when you cancelled the DD you failed to pay the interest on the september statement

just a theory

boliston

I would have thought that they would waive this type of charge if it's the first time it's happened. If not I'd threaten to cancel the card.

YorkshireBoy

maggie63 wrote: »

I am livid to say the least...

Calm down, make a cup of tea, and read your correspondence from MBNA regarding the DDI...

Important: Confirmation the set-up of your Direct Debit Instruction

Once your Direct Debit is in place, any extra payments you make will not affect the amount we collect unless you contact us at least five working days before the payment due date. Please note that working days do not include Saturdays, Sundays or Bank Holidays.

themull1

you would always have to cancel the dd with the credit card company as well as with the bank. i think thats probably in the terms and conditions.

exel1966

maggie63 wrote: »

I have never had to cancel a DD with the company, I've always done it via my bank and never had any problems like this before.

Then you've been rather fortunate in the past as at the bottom of every DD mandate it clearly states ;-

Your customers rights The Direct Debit Guarantee
You can cancel a Direct Debit at any time by simply contacting your bank or building society. Written confirmation may be required. Please also notify us.

Us refers to the comapny you have authorised to collect the DD. By advising the bank only you are still inviting MBNA to attempt to collect the DD which they have correctly done. This in turn has led to you falling foul of their t&C's as displayed by YorkshireBoy, hence the charges.

This is a complete rip-off, and I want to know if it's worth pursuing with the Ombudsman if they don't cancel the charges.

So, NO rip-off after all, no incorrect charges and nothing for the FOS to entertain.