Moving Direct Debits issue with O2

Pugwash69

I just moved my current account from LloydsTSB to First Direct, and opted to transfer all my DD's. All of them went across except the one for my O2 contract phone.

Is it likely to be O2 who have failed to change my details?

Anyway if you change yours and are with O2, keep an eye out for an email from "mycare" (mycare at o2mail.co.uk). It's not the most obvious address, as all the normal emails come from "O2 Billing" (o2shop at o2.com).

It was legitimate, not a scam. I went into my O2 account and changed my billing details manually and hope they stick!

InsideInsurance

The process works by details going to the DD originator and asking them to update the details. Whilst Banks have all agreed a standard time in which these are to be actioned there is no "global" agreement with non-banking entities (which is why I am always nervous about using switching services)

Hazzanet

InsideInsurance wrote: »

Whilst Banks have all agreed a standard time in which these are to be actioned there is no "global" agreement with non-banking entities (which is why I am always nervous about using switching services)

There are actually very strict rules set out in the "Service User's Guide and Rules to the Direct Debit Scheme" that O2 would be breaching if they failed to follow; specifically:

Lodgement
For each change to the DDI the new paying bank will inform the service user. This notification will be issued electronically using the Automated Direct Debit Amendment and Cancellation Service (ADDACS) reason code 3 advice containing both the old and the new bank details, see 17.6 for an example ADDACS report. Service users must action these advices immediately, or within 3 working days from receipt. The service user must not contact the payer to obtain a new DDI; the advice is the service user’s authority to debit the new account.

• For non-AUDDIS service users the payer’s authority given to the new paying bank taken with the list provided by the old paying bank shall constitute the DDI for the purposes of the rules, without lodgement of any new DDI by the service user. Therefore the service user is not required, in this instance, to follow the normal DDI completion and lodgement process as detailed in section 5. Service users must however apply the change to their data file and continue with Direct Debit collections.
• AUDDIS service users must send a ‘0N’ to lodge the new instruction within 10 working days of receipt of the ADDACS advice. The period from lodgement to collection has been reduced from 5 working days to 2 working days to ensure the collection of the payer’s Direct Debit is not delayed by more than 3 working days from that specified in the advance notice. However where collection time scales allow, it is recommended 5 working days are left before the first collection to ensure that no ‘0N’ rejections are received.

Should the service user fail to collect the Direct Debit as specified, further notification must be given to the payer of the new collection date. Refer to section 4 ‘Advance notice’.

If any Direct Debit collections have been sent to Bacs in advance of the input day or a service user collects Direct Debits from the old paying bank after receipt of a transfer advice, there is a possibility that the old paying bank may reject them.

and

17.5 Example of prohibited practice
• Service users must not request the payer to sign a new DDI upon receipt of a transfer advice.

• With effect from 1 January 2013, service users must not send a 0C transaction code to the old bank upon receipt of an ADDACS code 3 advice

InsideInsurance

Hazzanet wrote: »

There are actually very strict rules set out in the "Service User's Guide and Rules to the Direct Debit Scheme" that O2 would be breaching if they failed to follow

I was told differently by HSBC but it wouldnt be the first time a member of a bank has given wrong information.

First hand experience however is that whilst any rules may say one thing reality may be another. When I switched banks my council tax DD didnt transfer correctly which caused a few problems to resolve.

Hazzanet

If you've had issues where Service Users (Originators) have 'dropped the ball' as they frequently do, my advice is to complain direct to BACS who run the DD infrastructure. They won't deal with the complaint directly, but will put it to the Service User's sponsoring bank who will take it up with the Service User on your behalf. Generally they get a good ticking off if it's proven that they didn't follow the ADDACS advice.

Also, the OFT frowns upon 'late payment' information being passed to Credit Reference Agencies as a result of a messed up account transfer; this is also covered in the Service User Guide.

Hope that helps.

adamc260

When I moved bank I was sent a letter saying everyone had switched bar o2.. I called o2 who said they'd updated the details but obviously never responded to my bank like the rest of the companies.

Just give o2 a quick ring and check, they've always been nice enough to me

Anthorn

Seems to me that it's complicating a simple solution. Cancel the existing direct debit and make a new one. O2 should be able to do it electronically in a day.

Pugwash69

They had already cancelled the original DD, as I still have the account and had already confirmed there were none left.

It seems O2 got the cancellation, but didn't use the new details to set a new one up. It doesn't matter now, it just surprised me that they sent me an email from a previously unknown address to tell me I hadn't paid.

I avoid phoning O2. I have no mobile coverage at home, so have to jump the hoops to confirm my ID from the land line. I gave them my new details online and we shall see.