Direct Debits

lolavix

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.

As far as I know this applies if you cancel with them.

If you cancel with the bank, you may be breaching your agreement so they will set it up again.

Mikeyorks

stclair wrote: »

I think its abit of a grey area to be honest.

Not really ...... it's made crystal clear to DD originators that they're not permitted to resurrect Mandates where the customer cancels. The cancellation is signalled to them via ADDACS. And is coded - so there's no doubt it's a customer countermand :

ADDACS automates the process of paying banks informing organisations of changes to Direct Debit Instructions (DDI's). Changes may include amendments to the customer's account or a request from the customer to cancel a DDI.

The T&Cs between BACS and originators isn't in the public domain - as far as I'm aware. But the implications are pretty clear from the FAQ quote from BACS - on my last post

lolavix wrote:

If you cancel with the bank, you may be breaching your agreement so they will set it up again.

See above - simply not permitted under the terms originators sign up to with BACS.

stclair

I've gotta say the resetting up of direct debits after the customer has only cancelled with the bank has been going on for years.

Do you think the FOS should look into these antics then? As there is defo a floor in the process.

I was always on the understanding any direct debits cancelations should be done with originator?

YorkshireBoy

stclair wrote: »

Do you think the FOS should look into these antics then? As there is defo a floor in the process.

The flaw (;)) in the process is the originator's failure to act on the ADDACS report sent by the bank...something which they're contractually obliged to do within 3 days of receiving it.

I'm not sure what the FOS's response would be because clearly if the originator is setting it up and claiming again it's because a payment is contractually due. Maybe they would find 'knock for knock'?

I was always on the understanding any direct debits cancelations should be done with originator?

More accurately should 'also' be done with the originator, as recommended (instructed?) on the DDG received by the customer. For example...

You can cancel a Direct Debit at any time by simply contacting your bank or building society. Written confirmation may be required. Please also notify the organisation.

http://www.thesmartwaytopay.co.uk/DirectDebitExplained/Pages/Benefits.aspx

Mikeyorks

stclair wrote: »

I've gotta say the resetting up of direct debits after the customer has only cancelled with the bank has been going on for years.

Do you think the FOS should look into these antics then? As there is defo a floor in the process.

It is BACS who should be looking in to it. As they're the providers / monitors of the system and underpin the DD Guarantee.

Must confess I've cancelled a few DDs over the years - but never had one resurrected. To be fair that's normally been where I've been moving from one utility company to another - and done my housekeeping perhaps a bit early. I have had a few outraged letters to the effect 'you've cancelled the Mandate - why? But that's been the extent of it.

I did, among other things, manage a high value / low(ish) volume DD team for many years. And resetting a cancelled DD mandate was never contemplated.

stclair

Mikeyorks wrote: »

It is BACS who should be looking in to it. As they're the providers / monitors of the system and underpin the DD Guarantee.

Must confess I've cancelled a few DDs over the years - but never had one resurrected. To be fair that's normally been where I've been moving from one utility company to another - and done my housekeeping perhaps a bit early. I have had a few outraged letters to the effect 'you've cancelled the Mandate - why? But that's been the extent of it.

I did, among other things, manage a high value / low(ish) volume DD team for many years. And resetting a cancelled DD mandate was never contemplated.

That`s very good in your case however i`m sure a lot of people would say different a certain telecommunications company used to be a top offender for it re setting up Direct Debits after they had been cancelled ;-) They could try and ask for a blanket stop to prevent it happening again.