Direct Debit Refunds

mountainofdebt

How long can a direct debit refund take to come through?

I've gone to the bank today and it appears that MBNA with whom we had a loan with have taken out as a direct debit 10 times the amount that they should have. :mad: :mad: :mad:

This is has not only left us without any cash for the Bank Holiday weekend but has taken us over £1000 overdrawn.

I have been onto MBNA and they say that nothing can be done until Tuesday ...but how long will it take to get the money back into our account.

The only good news is that the car is now ours!!! :j :j

zzzLazyDaisy

Don't bother with the loan company. You are protected through your bank under the DD Scheme. Notify your bank that an unauthorised DD has been taken and the bank will refund the overpayment within 24 hrs and seek reimbursement from the loan company.

grumbler

The following quote is from this site :

What to do if a direct debit goes wrong
In essence, you let companies debit your bank account. This is cheaper for companies and banks, and sometimes you get a discount off a bill for paying by direct debit.

In return, if you tell tha bank something is wrong, they must give you the money back, and leave you to sort it out with company which originated the debit.

If an error - by the originator or by the bank - has caused you extra expense (perhaps by causing you to go overdrawn), the bank must put you back in the position you would have been in if the mistake had not happened. Whether this cost is borne by the bank or passed on to the originator is no concern of yours.

So, if there is a mistake or a dispute, complain at once. Our guide to complaining is here. Make sure you get full and prompt recompense.

davidcampbell

direct debit indemnities. very common

as lazy daisy said forget the loan compnay your bank will take care of it.

you are entitled under the direct debit guarantee to a full and immediate refund. (you should have the funds abck on tuesday)

any charges, either bank will waive them or supply you with letter to get company to pay you them back

they only cant do it til tuesday because of bank holidays i presume. if they have branches open over the weekend, in the circumstances they should be able to allow a 'small' overriding withdrawal on your account to cover you over weekend (will be small though and likely only if you generally run acc well)

DC

mountainofdebt

Thanks everyone.

I must admit I was half tempted to leave the money go through to MBNA and then sort it out but after talking to hubby I agreed with his sentiment that if we got the money from MBNA then they would be more inclined to pull their finger out and get the matter sorted asap!

I have contacted the bank and asked them to recall the amount but it appears that my account won't be credited until wednesday (the recall will take place tuesday but I won't have access to the funds until then) so I will incur charges.

Needless to say I have warned MBAN that they will be paying my charges as well compensation for a ruined bank holiday weekend!