Direct debit sent me overdrawn

rodneybg

A direct debit sent me overdrawn less than £50 for a few days. I corrected the situation but the Halifax still charged me.

Is the direct debit guarantee any protection here?

ehlo

As far as I know the DD guarantee only refunds if a company takes a different amount to what they were supposed to take or if the DD was fraudulent.

I would've thought the charges for going overdrawn would have been less than the charges for a returned DD? Sometimes if you ask nicely they will refund fees the first time as a goodwill gesture.

dunstonh

Is the direct debit guarantee any protection here?

The d/d guarantee scheme is not there to cover your inability to budget. It is there to cover incorrect application of the direct debit scheme. i.e. a payment is taken when it shouldnt be.

rodneybg

Why bless you Dunstanh - the first part of your post is gratuitous and mildly offensive.

Tupperware_Queen

Rodney, did they take the DD before they should have, or for more than they should? if yes, then the DD guarantee will cover you.

I had a huge row with Santander, who allowed a DD that I had previously cancelled, to be reset up..then when they paid it, when there was no money to pay it, they charged me huge fees....I pointed out that having cancelled the DD the previous month, I had no intention of resetting it up, and I was not paying the fees.

Have since cancelled the account - surprisingly enough!!

Sailmakers

Tupperware_Queen wrote: »

Rodney, did they take the DD before they should have, or for more than they should? if yes, then the DD guarantee will cover you.

I had a huge row with Santander, who allowed a DD that I had previously cancelled, to be reset up..then when they paid it, when there was no money to pay it, they charged me huge fees....I pointed out that having cancelled the DD the previous month, I had no intention of resetting it up, and I was not paying the fees.

Have since cancelled the account - surprisingly enough!!

A direct debit is an agreement set up with the company. The company involved reset the DD so was probably not the banks fault. The bank can cancel them but it should be done at both ends.

Uncertain

Sailmakers wrote: »

A direct debit is an agreement set up with the company. The company involved reset the DD so was probably not the banks fault. The bank can cancel them but it should be done at both ends.

Suggest you (and your employers) read the FOS guidance on the subject!

If it is cancelled at the bank it is cancelled and the bank must make good any losses.

dunstonh

Sailmakers is correct in what you should do although the reasoning was a bit off. Cancelling only at the bank doesnt cancel the contract. It just cancels the method of payment. The originator can still come after you for money owed if you dont cancel the contract with them directly.

Why bless you Dunstanh - the first part of your post is gratuitous and mildly offensive.

with respect, your post did suggest you were looking for a reason to cover your lack of budgeting. If that is wrong then I apologise. However, you havent since gone on to say that an error occurred by the originator or bank. So, it does appear that you were looking for a way to get someone else to pay for your error. I also apologise if that offends. However, personal responsibility is key to running your finances. The bank is not there to run your finances for you. If you dont control your own finances, you will just end up paying charge after charge. Its easier to take responsibility and avoid issues in the first place.

zppp

Uncertain wrote: »

Suggest you (and your employers) read the FOS guidance on the subject!

If it is cancelled at the bank it is cancelled and the bank must make good any losses.

According to the direct debit guarantee, you must inform both the bank and originator of your cancellation. This is on the direct debit mandate form. Plus, failing to inform the originator means they could set up a brand new instruction to collect their funds - something which a bank cannot control.

YorkshireBoy

zppp wrote: »

According to the direct debit guarantee, you must inform both the bank and originator of your cancellation. This is on the direct debit mandate form.

Technically, as was pointed out to me once when I stated the same, it's a request...not a 'must do'.

Plus, failing to inform the originator means they could set up a brand new instruction to collect their funds - something which a bank cannot control.

They could do, under AUDDIS, but they're not supposed to do as it breaches the rules...especially as they will have been informed (via an ADDACS report) that the customer has cancelled the DDI with their bank.

xyz123

Sailmakers wrote: »

A The company involved reset the DD so was probably not the banks fault.

how do you know that was the problem? do you know OP?