Direct debits show on bank statements?

Matchedbetter_2

Would like to know if when the money from your direct debit has been taken every month, does this information get put on your bank statement telling me how much you payed and when. Would like to know as I seem to have a direct debit from POLICY ADMIN SERVS even though I cancelled the phone insurance with them about a week ago.

bengal-stripe

Matchedbetter wrote: »

Would like to know if when the money from your direct debit has been taken every month, does this information get put on your bank statement telling me how much you payed and when.

Of course, a DD will show on your statement (date, amount, beneficiary). What date did you cancel the DD and what date does it show on the statement the DD was taken?

Mind you, you cancelled only a week ago. The DD might have been already in the pipeline, to be taken at it’s usual date. There is at least five working days overlap. Did you cancel it at the bank as well?

chambta

Matchedbetter wrote: »

Would like to know if when the money from your direct debit has been taken every month, does this information get put on your bank statement telling me how much you payed and when. Would like to know as I seem to have a direct debit from POLICY ADMIN SERVS even though I cancelled the phone insurance with them about a week ago.

You thinking they've cancelled the insurance won't stop them taking the taking the d/d. You should have cancelled it with the bank although you should approach your bank with reference to the 'direct debit indemnity scheme' which should see you reimbursed.

coolesticeking

Ensure that you have in writing they have cancelled the policy for you, otherwise they could simply set the Direct Debit up again and start claiming money from your account.

Matchedbetter_2

It's ok because I haven't had any withdrawals through my DD on my statements yet. Just wondering because i read elsewhere about DD's and it sounded like it didn't show on your statement.

pvt

coolesticeking wrote: »

Ensure that you have in writing they have cancelled the policy for you, otherwise they could simply set the Direct Debit up again and start claiming money from your account.

No they can't. :eek:

They would need a new DD mandate signed by the account holder. If they could re-use the original mandate, then there would effectively be no way for anyone to ever cancel a DD arrangement. Which, of course, there is.

pvt

coolesticeking

pvt wrote: »

No they can't. :eek:

They would need a new DD mandate signed by the account holder. If they could re-use the original mandate, then there would effectively be no way for anyone to ever cancel a DD arrangement. Which, of course, there is.

pvt

Oh they can, especially this does happen quite a lot with insurance products. You will find that most tell you if you cancel the Direct Debit it does not cancel the policy itself and that you need to contact the insurer directly to ensure this is cancelled with them. Otherwise, you will find that they can still re-setup a Direct Debit and claim the money again or try and get it out of you another way. Would you be happy if you accidentally cancelled the Direct Debit and found that your cover had stopped and all of a sudden needed to make an urgent claim?

That is why I said to contact them to ensure that the policy is indeed cancelled and get it in writing if they do try and set up another Direct Debit and claim more money.

pvt

coolesticeking wrote: »

Oh they can, especially this does happen quite a lot with insurance products. You will find that most tell you if you cancel the Direct Debit it does not cancel the policy itself and that you need to contact the insurer directly to ensure this is cancelled with them. Otherwise, you will find that they can still re-setup a Direct Debit and claim the money again or try and get it out of you another way. Would you be happy if you accidentally cancelled the Direct Debit and found that your cover had stopped and all of a sudden needed to make an urgent claim?

That is why I said to contact them to ensure that the policy is indeed cancelled and get it in writing if they do try and set up another Direct Debit and claim more money.

Oh no they can't!

I was not referring to your advice that the OP should contact the insurance provider and cancel the policy. That is correct advice.

I was refering to your statement that the insurance company could restart the DD after the account holder cancelled it. They can't do that.

If the insurer has a valid claim for a debt against the policy holder they would then have to persue that through the courts.

A DD affords no guarantee or protection for the drawer, only protection for the payer against the drawer's mistakes.

pvt

pmduk

I think you'll find they can if there's a contractual minimum period for example. My bank warned me about this when I cancelled a direct debit a fortnight ago.

pvt

Your bank has to cancel a DD if you tell them to. When you do, the bank will usually inform the payee/drawer that their DD has been cancelled by you and the bank will not honour any further attempts the company makes to draw funds. I believe that ends the bank's involvement in the matter.

I am no expert on the mechanism used by banks to set-up DDs and communicate DD cancelations, or insufficient funds, etc. But I know you, as account holder, have an absolute right to stop or cancel them.

I've never heard of a case were the drawing company has tried to re-establish a cancelled DD without contacting the client first. But they would be doing so without your (the account holder's) permission. I think it's probably fraudulant for them to do so, assuming the system actually allows it. But there's no question that if they did, and then drew money from your account, the DD guarantee would ensure you could get that money back on request.

I don't disagree with coolesticeking or pmduk that if there is a contract in place with a company, or even a contractual obligation to have DD arrangement in place, then cancelling the DD might be an unwise action. And the company will probably come after you for the money, one way or another. The bank, I suspect, is courteously warning you of that fact, and suggesting you should tell the company what you have done - but it's not telling you that you cannot cancel the DD, and it's not warning you that the company has the right to re-establish the DD without your further permission.

As regards accidentally cancelling a DD and having your cover stopped. The insurer will write to you fairly promptly and ask what is going on, as soon as the bank tells them the DD has been cancelled.

If anyone else has a different take, or knows from the inside how the workings of how DDs are administered, then I would be interested to hear it.

pvt