Direct Debit failure

Jason_Guest

Hi all,

My brother called me yesterday to say that he had a demand from hastings direct car insurance for an 'outstanding amount'. My brother was under the impression that it was leaving his account via direct debit, so he checked his statements and sure enough it was leaving for the first 6 months and then it stopped. My brother has rang up and they have told him that they had made a mistake and that he has 7 days to pay it off, otherwise they will send debt collectors round! Sounds a bit forceful to me. The direct debit wasnt a huge amount, so it wasnt easy to spot. Anyone got any advice on how they would deal with this demand, its a weeks wages they want at the drop of a hat, and unfair...

Thanks

exel1966

Jason_Guest wrote: »

My brother has rang up and they have told him that they had made a mistake and that he has 7 days to pay it off, otherwise they will send debt collectors round! Sounds a bit forceful to me. The direct debit wasnt a huge amount, so it wasnt easy to spot.

And if you believe that you'll believe anything, a bit like this story.

Zubergeek

Personally i would write to them (so that you get it all in writing) asking why THEY CHOSE to stop the direct debit? At the end of the day, a direct debit is set up so they can put their sticky little fingers in your bank account with pre arranged authorisation. SO basically, they could have made a mistake, but the direct debit in place allows them to correct their mistake then take the right payment. Personally i would say that i would be happy to make the payment THEY messed up on, and to reinstate the direct debit. Hope that makes sense.

tellmeitsfriday

Jason_Guest wrote: »

Anyone got any advice on how they would deal with this demand

Erm, pay it?

Jason_Guest

Zubergeek wrote: »

Personally i would write to them (so that you get it all in writing) asking why THEY CHOSE to stop the direct debit? At the end of the day, a direct debit is set up so they can put their sticky little fingers in your bank account with pre arranged authorisation. SO basically, they could have made a mistake, but the direct debit in place allows them to correct their mistake then take the right payment. Personally i would say that i would be happy to make the payment THEY messed up on, and to reinstate the direct debit. Hope that makes sense.

Well he's quite happy to carry on with the direct debit, he just cant pay it in one go, havent got back to him yet but ill get him to ring. I didnt think it was appropriate to send a letter like that after their mistake!

@ TELLMEITSFRIDAY, haha ho ho lol!! nice 'errm pay it back' wow, that must have used some cells! You'd give Frankie Boyle a run for his money! To others, thanks

jonesMUFCforever

It might have been their fault there again your brother might have cancelled the authority or it might be that he did not have enough money in his account and it bounced.
After all if he knew it was going out he would have budgeted for it and the money would still be in the account would it not?

Mark_In_Hampshire

Jason_Guest wrote: »

Hi all,

My brother called me yesterday to say that he had a demand from hastings direct car insurance for an 'outstanding amount'. My brother was under the impression that it was leaving his account via direct debit, so he checked his statements and sure enough it was leaving for the first 6 months and then it stopped. My brother has rang up and they have told him that they had made a mistake and that he has 7 days to pay it off, otherwise they will send debt collectors round! Sounds a bit forceful to me. The direct debit wasnt a huge amount, so it wasnt easy to spot. Anyone got any advice on how they would deal with this demand, its a weeks wages they want at the drop of a hat, and unfair...

Thanks

Whether or not it's fair doesn't come into it.

Even if you agree to pay by DD the responsibility to pay lies with the customer.

If the payee doesn't draw the payment, it is the customer who is in breach of contract. All the rights rest with the payee.

If the payee is an insurance company as here, and they haven't been paid, they are quite within their rights to refuse to pay out on and/or cancel the policy at their will because the sums due have not been paid by the customer.

What will probably happen is that the total due will be debited in one go once the direct debit has been set up again, as paying by DD means that the customer gives the payee authority to debit unspecified amounts on unspecified dates.