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Unpaid Item Charge?

A question for any experts out there.

Recently switched bank accounts (binned Santander and gone to First Direct)

Not really been impressed by switch over process due to large number of companies ignoring new DD instructions from FD. (But that's another story)

Anyway question is this.

I have a Sainsburys credit card.

First Direct wrote to Sainsburys on 20th January informing new DD details. (Taking FD word on this, they insist they wrote to everybody and no reason to doubt they didn't)

Cancelled DD on 1st Feb from Santander as didn't want duplicate payment taking even though was only £11.96.

Payment was due on 21/2/11.

Paid balance off in full on 11/2/11 by debit card online.

Sainsburys still tried to take payment from Santander and are wanting to charge me a £12 unpaid item fee.

Can they do this? I thought under the DD guarantee scheme I could cancel at any time, is this correct?

And considering I paid my balance off in full and with plenty of time just adds insult to injury. I could understand if I'd missed the minimum payment.

Any advice greatly appreciated before I ring them and make my case.

John

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