Direct Debits - You CANNOT stop them!!

vortex1150

I've recently changed my gas/elec supplier, so I cancelled the monthly direct debit to ScottishPower with my bank; Nationwide Flexaccount. I was astonished to see that, at the end of the month, the cancelled payment had been taken again!

When I phoned Nationwide, they told me that there was no way to stop the company re-setting up the cancelled DD if they want!!!

I find this very worrying. You instruct the bank NOT to pay out....and they are not able to stop the payment!! It's a bit like someone cashing a legitimate cheque...and then going back and re-cashing it as many times as they want!

The Nationwide advisor told me this was the same for all banks. If it is only a problem with the Nationwide, I will seriously think of changing to a safer bank.

Anyone else had this problem?....or know of a bank that CAN definately stop DD payments?

V

Optimist

You should also notify the people you set the DD up with however the DD Guarantee quoted below lets you cancel with the bank at any time

" The Guarantee
If the amounts to be paid by Direct Debit or the payment dates change, the organisation collecting the payment will notify you normally 10 working days in advance of your account being debited or as otherwise agreed.

If an error is made by the organisation or your bank or building society, you are guaranteed a full and immediate refund from your branch of the amount paid.

If any payment is made in error, you should contact your bank or building society who are responsible for giving you a full and immediate refund - even if the original error was made by the organisation collecting the payment.

Direct Debit is one of the safest ways of paying your bills. Fraud rarely occurs because organisations using the Direct Debit Scheme go through a careful vetting process before they're authorised, and are closely monitored by the banking industry. But if money were to be taken from your account fraudulently you'd be protected by the Direct Debit Guarantee, and would be entitled to an immediate refund from your bank or building society.

Don't forget, you can cancel a Direct Debit at any time by contacting your bank or building society. We also recommend you notify the organisation concerned. "

rjm2k1

I had this happen to me once, it seemed that the bank only checked the DD exists after the fact. In my case, the money was automatically returned (I assume by my bank) within a day.

grumbler

vortex1150 wrote:

...When I phoned Nationwide, they told me that there was no way to stop the company re-setting up the cancelled DD if they want!!!

I find this very worrying. You instruct the bank NOT to pay out....and they are not able to stop the payment!! It's a bit like someone cashing a legitimate cheque...and then going back and re-cashing it as many times as they want!

The Nationwide advisor told me this was the same for all banks. If it is only a problem with the Nationwide, I will seriously think of changing to a safer bank....

Yes, since introduction of AUDDIS it got more difficult for banks to stop DDs being reinstated. However, in fact the company reinstating a DD without your authorisation is commiting a fraud (like of). It is not your problem. It is a problerm of your bank that must refund you all the money. See: Direct Debit Guarentee Training?

arnie&caseysma!

Once happened to my mum when she changed her supplier from Scottish Power. You must notify the agency concerned when you cancel a direct debit so that the company do not set up another DD (which they can do no probs as they will still have all your bank details from the consent form that the company retains and the bank never actually sees!) and take the cash unauthorised. Took mum a while to sort it out but she eventually got there!