question re direct debits

shariatlanta

About 3 months ago I received a sales call about life insurance and stupidly gave them my bank details, they told me the first 3 months were free and after that it would be £6.99 per month. Didn't think any more about it and as I never received any documentation I thought it hadn't gone ahead.

Last Friday a direct debit went out of my account for the £6.99 but was returned due to insufficient funds but when I finally found the companys number I was told they had sent out documents which I never received and they don't need a written signature for the direct debit, it was a verbal agreement.

Is this correct, if so then I'll just have to accept it and learn by my mistake, annoying thing is I'm going to be charged £30.00 by the bank

Rafter

It is possible to create a direct debit without a signature - they must have recorded the call though.

Ask the bank to refund the charge on this occassion. If they say no tell them it is unlawful unless they can demonstrate that they have incurred £30 of costs.

Good luck.

R.

sgx.saint

Just to hijack the thread a little ....

My OH incurred a £33 bank charge when Orange tried to take out a Direct Debit too early. This was after Orange were specifically asked to put forward the DD date to coincide with my OH pay date. She rang Orange and they admitted blame, and said they would credit her back. That was a month ago and now she is being led a merry tale by Customer Services.

Under the Direct Debit guarantee, is it not the bank that should refund that charge to her and not Orange?

Was just wondering if she could approach her bank for a refund under the DD guarantee.

iceicebaby

Hiya

If you gave them the bank details over the phone then really the company has done nothing wrong. You could of course try and claim your bank charges back (see the topic about this on this board)

SGX.saint...under the DD guarantee the bank is obligated to refund the payment amount that was taken in error, not the bank charges. If Orange have admitted liablility then they should credit your bank charge. Otherwise try and claim then back from the bank via the other thread.

Hope this helps

shariatlanta

Thanks for the advice, I shall be asking the bank to refund the charge as its the first time I have gone overdrawn on this account.