Reclaiming Direct Debit

moneymuffin

I'm hoping someone on here can help me. I ordered some goods from KandCo Catalogue which I got delivered to a local store late May/Early June.

I didn't collect the items so in theory they should have been returned to them but there seems to have been an errer and one parcel has gone missing and they are still waiting to get the other parcel back. They have agreed to put a credit on my account for the first parcel, even though they don't seem to know where it is, but I have to wait until the 2nd parcel get back to them for them to credit that.

These delays have led to them taking £35.40 direct debit from my account although once my goods are all credited I won't have a balance owing so will be £35.40 in credit. I asked them to return the credit balance to me but they said that they could not do this due to money laundering regulations and that I had to contact my bank and put in an indemnity claim. Is this right? Also, if it is how long do they normally take? ( I bank with Barclays.)

Just seems ridiculous that they can't return my money to me directly as how is the bank supposed to know that the Direct Debit was taken in error?

Lensman_2

You should simply tell the bank that you have been debited for goods you did not receive.

Let them sort the details out.

themull1

If you ask the bank to do an indemnity, you will get an instant credit, the bank will then claim the money back from the company concerned. The bank have to do an indemnity so dont be fobbed off with any excuses, its part of the direct debit guarantee.

moneymuffin

Thanks for you replies, I was worried that I would be fobbed off by the bank and end up going from one to the other but from what you've said it should be fairly straight forward so will ring them now.

Thanks

cing0

In my experience, banks use "Direct Debit Indemnity claim" as a way of making you jump through hoops unnecessarily hoping you won't pursue it any further and shows poor customer service on the banks behalf.

I would say the "money laundering regulations" comment would probably be the same reason. Best was to get a direct debit refund is in writing, furnishing the cancellation request etc or offering to send it to the bank on request.

What I think happens with credit cards disputes and direct debits in practice is the bank will write off and absorb the loss themselves upto a certain amount, don't know what that is though.