Direct Debit Recall Charge

DannyJ90

I have just being charged £35 from my bank (Yorkshire) for a DD that was unsuccessful. I cancelled the DD last month but the bank still sent it anyway, but due to there not being enough in there it was recalled and they slapped me with a charge! They are refusing to give me a refund even though I clearly told them to stop the DD payment last month!

Do I need to file a complaint with head office or go to someone higher? The DD should never have happened, even if the company did request it the bank should of stopped it.

Also, does anyone know of any better banks that don't charge as much? I've been thinking of leaving them for a while now as there opening hours are appalling (whenever they feel like it, regardless what the 'opening times' sign on the wall says outside!)

Azrael_1701

Did you tell the company that you cancelled it, if not then they could have just setup a different direct debit and taken it through that new one.

dunstonh

I cancelled the DD last month but the bank still sent it anyway

With direct debits, banks do not send the money. Standing orders send the money. With direct debits, the originator (the business) takes the money from your bank account. The bank has little control over that other than to refuse payment.

They are refusing to give me a refund even though I clearly told them to stop the DD payment last month!

Did you tell the bank or the company or both? if you told the bank, does a direct debit mandate appear in your cancelled list and give a date? (many online banking systems will show your active and cancelled direct debit list)

magpiecottage

Just tell them they are in breach of the Direct Debit guarantee and that you want them to refer the matter to their complaints procedure.

If they tell you to put it in writing tell them they have just breached the FSA's dispute resolution rules as well because they are required to accept a verbal complaint. (Normally it is worth complaining in writing so you have record of what you have told them but this is pretty straightforward).

Premier_2

DannyJ90 wrote: »

I have just being charged £35 from my bank (Yorkshire) for a DD that was unsuccessful. I cancelled the DD last month but the bank still sent it anyway, but due to there not being enough in there it was recalled and they slapped me with a charge! They are refusing to give me a refund even though I clearly told them to stop the DD payment last month!

Do I need to file a complaint with head office or go to someone higher? The DD should never have happened, even if the company did request it the bank should of stopped it.

Also, does anyone know of any better banks that don't charge as much? I've been thinking of leaving them for a while now as there opening hours are appalling (whenever they feel like it, regardless what the 'opening times' sign on the wall says outside!)

If you had cancelled the DD mandate, then the bank would not have processed the collection from the originator, but simply returned it to them as no valid mandate held.

You cannot cancel individual DD collections as and when you feel like it.

However, if you cancelled your contract with the originator, and had agreed no further collection was to be made, then you are fully covered by the DD guarantee.

Contact your bank and seek recovery. If the payment had been made, the bank would be required to refund this immediately. However, you didn't suffer this loss as the bank appears to have refused payment anyway due to insufficient funds. This led to you incurring a bank charge. Again, make a claim with your bank under the terms of the DD scheme, this time tell them it is a consequential loss claim due to the unauthorised DD collection attempt.

Consequential losses are repaid by your bank, but they are not obliged to do so immediately, but rather when they receive the funds from the originator (which can take about 14 days).

A word of warning:
Any refund the bank gives does not affect the terms of the underlying contract. In essence, if the originator disputes your claim, they may counter claim or take their own steps to recover what they believe you owe.

Azrael_1701

AFAIK the guarantee doesnt cover consequential losses, and as the direct debit wasnt actually paid, it doesnt apply anyway....?

Premier_2

Azrael_1701 wrote: »

AFAIK the guarantee doesnt cover consequential losses, and as the direct debit wasnt actually paid, it doesnt apply anyway....?

Consequential loss is not part of the DD guarantee, but is part of the overall rules of the Direct Debit Scheme; it covers just this sort of incident.

Azrael_1701

Premier wrote: »

Consequential loss is not part of the DD guarantee, but is part of the overall rules of the Direct Debit Scheme; it covers just this sort of incident.

Ahh right, fair enough.