can council tax keep bank detail?

Lexxx

I was unemployed for over a year and did not pay council tax,
i have recently started a part time job and applied for council tax & housing benefit.

i did not fill out any new forms and was waiting for council tax to contact me. Checked bank account this morning to find they have taken out a payment, Stupidly i did not cancel the DD back when i stopped paying.

I do have to pay council tax, i am aware of that and that is not the issue, But isn't it illegal for them to keep my bank details for so long and can they just take with out of my bank account with an up to date agreement.

theheadlander

Hi

I am not sure how that would work. I was on a direct debit with my council and when my circumstances changed they canceled the Direct debit and I had to set it up again. I think you definately need to speak to them about what they have done. Although with the council be prepared for a 15 minute minimum call waiting time.

stroodes

They do keep bank details, you must have given them your bank details at some point and no this is not illegal, although if you have overpayed due to any rebate fourthcoming then will be refunded to you.

Lexxx

theheadlander wrote: »

Hi

I am not sure how that would work. I was on a direct debit with my council and when my circumstances changed they canceled the Direct debit and I had to set it up again. I think you definately need to speak to them about what they have done. Although with the council be prepared for a 15 minute minimum call waiting time.

i can not get through on phone right now.
I have cancelled DD and am tempted to just wait for them to contact me and fight it out!

Lexxx

stroodes wrote: »

They do keep bank details, you must have given them your bank details at some point and no this is not illegal, although if you have overpayed due to any rebate fourthcoming then will be refunded to you.

yes i did give them my bank details over ayear ago when i was working.
I had an over payment, that they did not automatically pay to me, i had to call them and they refunded it to me by check two months later

stroodes

Don't want to read your reply and run, hmmm I do agree that they can take their time in refunding, best thing I can suggest is cancel that dd right now and I find between 8.30am and 9.30am is best time to phone them, hope you get this sorted.

Red_dog_Sam

There are dormancy rules imposed by the banking industry that say a Direct Debit should be cancelled if it has not been used for 13 months. The Council should not be re-using bank details if it is over 13 months since they last did - but can do so within that period. Either way the Council must give you 14 days (or 10 working days) notice of the amount to be claimed and any subseqent changes to that. Without the appropriate notice you are entitled to a full and immediate refund from your bank under the direct debit guarantee scheme. Approach your bank - tell them you weren't give appropriate notice - then they must immediately refund your money - then they have to claim the refund from the Council - called an indemnity claim.

Lexxx

oh boy....i might have messed up:(

just went through my pile of 'junk mail' and found a letter from the council tax people, with payment schdule and a DD form for me to fill out so payment can be taken out of my account.

obviously it was not completed or returned.

They took a DD payment was sept 1st 2010
then again today. They did not notify me that they had my bank details or that they would be taking payment

isn't that 13months?

Red_dog_Sam

The letter you got might've already said payment would be taken by Direct Debit - but they just send out a new DD form with every bill by default. If the last claim was 01/09/11 and the next one was 01/11/11 then, yes there are 13 months in which the DD has not been used. It is up to the organistaion with the DD mandate (the Council) to let you know when your DD becomes dormant but the chances are they - like many other organisations - don't put effort into applying the rule - and most of the staff there won't even know it exists.
It seems like the 14 days notice clause won't apply because that letter you had probably covers that. The dormancy rule still applies so you can still invoke the Direct Debit guarantee to get an immediate refund from the bank and get the existing DD cancelled.

Lexxx

Hey red dog sam,
Thanks for the info:)

The letter from council tax did not state that direct debit would take payment, it is a council tax bill with a direct debit mandate attached, it has the date all the payments are due.

I have not gotten throught to council tax office, lines are still busy.

I did go into bank this afternoon and told them of the situation, the guy said he would do me a favour and reverse DD, when i asked for proof of this, that he had reverse payment back to my account, he said he couldn't, he had done me abig favour and was not really suppose to do it?
I have checked my account and the balance is still the same, I can only assume it will show tomorrow?
I will go into my local branch and check it out tomorrow

Red_dog_Sam

If you've still got the DD form that came with bill it will have the "Direct Debit Guarantee" printed on it - it's standard text on all DD mandates and is quite clear about your right to a full and immediate refund.
None of this 'doing you a favour' business - your absolute right under the banking industry's own scheme - and in there to protect you in exactly this situation.
The bank, of course, know that it's them that have to wait for the council to pull it's finger out and refund them the money , rather than you.
Best of luck - hope it goes smoothly - don't you just love British bureaucry.