Lloyds TSB Refuse Direct Debit Refund

JuicyJesus

They are talking sh*te. Under Payment Service Regulations, unauthorised payments must be refunded the same working day you notify the bank that they are unauthorised, unless there is good reason to suspect that you are fibbing.

YorkshireBoy

JuicyJesus wrote: »

Under Payment Service Regulations, unauthorised payments must be refunded the same working day you notify the bank that they are unauthorised

I'm not sure where you got that from, because regulation 64(5) says "10 business days"...

http://www.legislation.gov.uk/uksi/2009/209/pdfs/uksi_20090209_en.pdf

Mikeyorks

stomanek wrote: »

I am going to go back to Lloyds TSB and quote the DD guarantee.

If you didn't set up the Direct Debit ..... then the Guarantee doesn't really apply.

But - your Bank should accept a fraud claim in lieu.

I need to threaten though - is it the Financial Services Ombudsman

From a case study on their site!

In this case, as Mr M had not authorised a direct debit, the direct debit guarantee was not strictly relevant

stomanek

Mikeyorks wrote: »

If you didn't set up the Direct Debit ..... then the Guarantee doesn't really apply.

But - your Bank should accept a fraud claim in lieu.


From a case study on their site!

I see - so the DD guarantee only covers you if you signed the DD in question - so the fraudster can get it reversed but not me!
OK I will claim it as fraud and demand a refund.

stomanek

Surely then it would be the same as if someone stole my debit card and I reported unauthorised activity.
This did happen before 2 years ago - I had a spate of them - the girl on the phone refunded everything back on the spot and cancelled all the DDs. That was before the bail outs. I know if I contact Three about this I will get bounced around all day so I will go back to my bank and threaten to take my overdraft elsewhere if they don't play ball.

greyteam1959

I think you might stand more or a chance in gaining your refund if you approach your bank in a different manner.....
Less use of the words 'demand' & 'threaten' might help !!

stomanek

Thank you for all the replies.
I phoned the bank this morning and was put through to a member of the fraud team. I was assured an 8 day investigation would result in a refund. Basically I don't have to do anything else and the money will come back to me which is what I wanted. They need to investigate because a certain % of people report unauthorised activity incorrectly - forgetting that they signed this or that. In my case of course I just don't have any relationship with THREE mobile.

Mikeyorks

stomanek wrote: »

I see - so the DD guarantee only covers you if you signed the DD in question .

Not unusual to only get a 'warranty' if you bought and own the product?

- so the fraudster can get it reversed but not me!

No ...... because no 'error' would have been made! Only the fraud.

Xbigman

I think you're dead wrong on this one. If money is taken from your account by DD then the critical fact is that it was taken by direct debit and therefore is covered by the direct debit guarantee. The OP talking to the fraud dept was a mistake as it does not need to be fraud, it merely needs to be by direct debit to be refunded. The trick is not to engage with bank staff about random rubbish or rules they might have. You demand the DD be refunded and thats that. You do not have to explain anything, just give them the details of what was taken.

I'm seen some real rubbish from banks to get out of the DD guarantee. This includes specific staff not being in, or on the phone. Forms to fill out. Managers to inform/ recieve permission from. The fact is, if its taken by direct debit it is covered by the direct debit guarantee. If its also fraud then its up to the bank to get the money back.
One point. I've never (nor my daughter) ever got anywhere on the phone dealing with DD's. Go to a branch and stand there until they sort it out. As soon as the bank staff realise you won't go away they become much more efficient.


X

Anthorn

Why is it not fraud?

The problem is electronic debits which don't need a signature. Any company using the direct debit system which knows your bank sort code and account number can transmit a direct debit authorisation without a signature. And the chances are that your bank won't tell you about it!

If not a fraudulent transaction then it's an unauthorised transaction if the OP didn't authorise it.