Bank allowed cancelled dd go through??

edited 30 November -1 at 1:00AM in Budgeting & Bank Accounts
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uolypooluolypool Forumite
1.2K Posts
edited 30 November -1 at 1:00AM in Budgeting & Bank Accounts
Evening, I cancelled 2 direct debits for the same company recently, Also contacted the company to inform them that I had done so.Last night I looked on my online banking and they have been presented to my account and deducted from my balance.I phoned the bank and they told me that they cannot prevent the company requesting payment but as the dd was cancelled the money would show up back in my account tuesday morning, has anyone any idea if this is correct .Many thanks in advance
Paul Walker , in my dreams;)
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Replies

  • ses6jwgses6jwg Forumite
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    Direct debit indemnity.

    We find that certain companies, even if we cancel the DD, they just set it up again to take payment.

    TalkTalk are the biggest culprits.
  • dunstonhdunstonh Forumite
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    If the company requested the payments they will still appear on your bank statement but the bank should return them unpaid. If it was LloydsTSB it would show up as contra entry and appear next day going back in again. You shouldnt need to do an guarantee claim unless the bank misses it.

    banks cannot stop direct debits being requested. They can stop them from being paid though. Some companies submit their direct debit requests 3 weeks in advance. So, cancellations cannot stop a payment from being requested.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • uolypooluolypool Forumite
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    ses6jwg wrote: »
    Direct debit indemnity.

    We find that certain companies, even if we cancel the DD, they just set it up again to take payment.

    TalkTalk are the biggest culprits.


    I thought that so I looked through the dd list attached to my account and they are not showing.Very confusing, is there anyway I can get the money back via the bank??
    Paul Walker , in my dreams;)
  • edited 1 February 2011 at 1:48AM
    YorkshireBoyYorkshireBoy Forumite
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    edited 1 February 2011 at 1:48AM
    uolypool wrote: »
    I thought that so I looked through the dd list attached to my account and they are not showing.Very confusing, is there anyway I can get the money back via the bank??
    Assuming it doesn't re-appear Tuesday (as they have already stated) then you invoke your rights under the DD guarantee (not the DD indemnity as mentioned above...that's what your bank will use to get their money back from the DD originator).

    Just out of interest, when did you inform the bank/originator...ie how recent is "recently"? And do you still have a contract with them, ie owe them monies which you should have paid by other means but haven't? If so, they've probably (ab)used the AUDDIS system to set the DD up again and your money may not re-appear Tuesday!
  • uolypooluolypool Forumite
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    Assuming it doesn't re-appear Tuesday (as they have already stated) then you invoke your rights under the DD guarantee (not the DD indemnity as mentioned above...that's what your bank will use to get their money back from the DD originator).

    Just out of interest, when did you inform the bank/originator...ie how recent is "recently"? And do you still have a contract with them, ie owe them monies which you should have paid by other means but haven't? If so, they've probably (ab)used the AUDDIS system to set the DD up again and your money may not re-appear Tuesday!


    It was for a renewal of pet insurance and I went else where.I told them before the old policy had ended and no didnt owe them any monies.I think they have ignored the telephone convo and the email sent even though I have a conformation email saying I wished to not renew.The money is back in my account today and has been taken off the online statement so everything is back to normal thankfully.
    Paul Walker , in my dreams;)
  • book12book12 Forumite
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    If I were you, stick to non-direct debit payments to avoid these kinds of things happening.

    You get letters through reminding about payments anyway. After that, pay it before the deadline.

    Unless the policy states that direct debits are the only payment, fair enough.
  • dunstonhdunstonh Forumite
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    If I were you, stick to non-direct debit payments to avoid these kinds of things happening.

    Direct debits have more consumer protection than any other method.

    The system has worked exactly how it should have done in this case.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Did you cancel the DD at the banks end because the company may have said they'd cancel it however unfortunately a lot of the time they don't?
    I work for first direct and have previously worked for Santander.
    Any information I give should not been seen as being given from first direct or Santander however I do have certain knowledge from working there.
    Thank you, Chrissy :wave:
  • This has recently happened to me with British Gas, cancelled with them and with bank well in advance.

    BG still tried to take and RBS (my bank) charged me an unpaid item fee which I am going to get back from BG.

    However the amount was not paid which is where an indemnity from the bank applies.

    It is separate when you are merely charged for them trying to take a cancelled direct debit.

    BG have accepted responsibility and are going to sort it out (when I don't know, this has been going on for weeks). I am well miffed as it has damaged my internal credit score with the bank and I can't now get a proper bank account.

    tiger
  • Also a returns fee may show on your credit file, but i believe the term 'returns fee' is where the bank cannot pay a DD due to insufficient funds or insufficient OD to cover the transaction... It shows as effectively 'defaulting' in your current account. This is something you may want to check.
    I work for first direct and have previously worked for Santander.
    Any information I give should not been seen as being given from first direct or Santander however I do have certain knowledge from working there.
    Thank you, Chrissy :wave:
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