Direct Debits

martij2

I cancelled a direct debit via online banking with my bank in December 2010 and it now looks like the company continued to take funds for the whole of last year. Is there any way for me to get this money back off them?

Lith

how can the company take funds if the direct debit was cancelled?

surely that's against the law.. taken money from ya account even tho you STOPPED the direct debit ?


anyway of course you can get it back under the direct debit guarantee.

dzug1

The company have set up the direct debit again. As you didn't cancel it with them as well as the bank it's at least arguably legal for them to do so. You've given them a mandate and not cancelled it as far as they are concerned.

As to getting it back - some of it certainly. Whether the whole year's worth - ????. Had you noticed it sooner it would be easier

lolavix

You would have needed to notify the company as well, if they set up the direct debit again the bank will accept it. Why has it taken you so long to notice?

dixon-bainbridge

martij2 wrote: »

I cancelled a direct debit via online banking with my bank in December 2010 and it now looks like the company continued to take funds for the whole of last year.

Have you not checked your bank statement for over a year???

I wouldn't have thought a company can re-create a direct debit if you cancel it - surely the bank need your permission to accept it. Is the direct debit payment for something you have signed a contract for? If so, then you would expect the company to recoup all their money one way or another.

Have you actually spoken to the company and/or bank about it?

JohalaReewi

You can request a full refund of the payments taken in error. Contact your BANK for a refund under the Direct Debit Guarantee Scheme. You cancelled the direct debit but the company kept taking the money. So you are covered by the scheme. The bank might try to say it has been too long or they are not responsible but this is not true.

See http://www.thesmartwaytopay.co.uk/directdebitexplained/pages/directdebitguarantee.aspx

When you cancel a direct debit via the bank, the bank will notify the company so there is no obligation for you to notify the company yourself. It is just a good idea if you do.

It is also a good idea if you check your bank statements regularly and often.

bengal-stripe

dixon-bainbridge wrote: »

I wouldn't have thought a company can re-create a direct debit if you cancel it - surely the bank need your permission to accept it.

The receiving company can set up a DD again, just the same way they did previously. Sometimes people cancel a DD in error or temporarily to avoid the DD to bounce in a certain month or they are not entitled to stop payment: for example, the company continues to provide the service or a contract has several more months/years to run.

If the OP has failed to inform the payee about him/her wanting (and being entitled) to cancel the contract and did not realize for a whole year the DD was still (or again) active, the OP has only him/herself to blame.

Maybe the OP can tell us, if the monies taken were still due.

JohalaReewi

dixon-bainbridge wrote: »

I wouldn't have thought a company can re-create a direct debit if you cancel it - surely the bank need your permission to accept it.

Technically, you are correct but in practice this happens a lot.
This is because direct debits are now created electronically by the originating company so there are fewer checks. This means the company can recreate a cancelled direct debit almost with impunity.

See AUDDIS http://www.bacs.co.uk/Bacs/Businesses/DirectDebit/Services/Pages/AUDDIS.aspx

ylesia

This happened to me twice with the insurance dd and gadget helpline dd that seem to get set up automatically when you upgrade a phone from carphone warehouse! Despite phoning both companies and cancelling the contracts, phoning my bank and cancelling the DDs online they still managed to take the first installment!

I never received anything through the post and the only reason I knew i had "signed up" was because the guy from carphone warehouse told me they were starting automatically and gave me the numbers to phone and cancel.

When I noticed the money go out I phoned Nationwide and told them it was unauthorised and I wanted the money back. He gave me some flannel about how I should contact the company and get them to refund as it would be easier. I repeated the DD guarantee and said that it may be easier for him but not for me and I wanted Nationwide to do their job and get the money back.

My account was recredited for both DDs within the week.

Having said that though I did notice within days - not sure how much luck you will have given that you haven't noticed for a whole year!

Mikeyorks

JohalaReewi wrote: »

This means the company can recreate a cancelled direct debit almost with impunity.

Not quite with impunity - if they want to remain within the DD system. From the same link you provided :-

Q......... Can money be collected from my account after I have cancelled a Direct Debit instruction?

A.......... No. The organisation would have to get your authority to reinstate a cancelled Instruction.

stclair

Companies always re set up Direct Debits if you only cancel them with the bank.

As the company will say for exampleb BT you need to contact them to cancel the direct debit as detailed in there T&Cs as you give them authority to take the payment.

Then unless you advise them any different the authority is still in place so they will set it up again. I think its abit of a grey area to be honest.