Cancelled direct debit taken by bank.

Wiffies

Hello.

My other half cancelled a DD payment to the CSA as he'd been informed that his son is now working full time and also, because he is now 18. He never missed a payment and does not begrudge paying. However, he has struggled, but only has two more payments to make. He has just had this confirmed.

When he cancelled the DD he did it some three weeks before the payment was due to be taken. Needless to say, the payment was taken by the bank, Santander.

He rang the bank and asked for the amount to be refunded, in accordance with the DD guarantee. It was. The csa also confirmed that the money had been paid.

Now, two months later, the CSA has said that the bank recalled the DD in July. The payment went out on the 1st June.

The CSA states that my OH asked the bank on a written form to claim the money back. He didn't; it was done over the telephone. He asked for the DD guarantee to be honoured, not for the DD to be recalled, as this was some days later. He waited to see if the DD would be reversed before contacting the bank.

He has now asked the CSA to check that child benefit is still in payment and it is, but ends in September. so he understands that he must make next months payment, plus what appears to be the recalled bank DD.

After all this, my questions are thus: does the bank, upon refunding the bank account holder, request the money from the beneficiary, paid in error ( in return for paying out to the account holder, in respect of the DD taken in error) and if so, why has the bank taken so long to recall the amount?

Thanks in anticipation.

pmduk

Satander should have refunded the original payment immediately, but Satander is only a pretend bank, not worthy of the name. Make a formal complain to them and the FSA. The FSA can't do much at this stage except add this to the many other reasons to rescind Satanders banking licence. (It won't happen but let's dream!)

innovate

Makes me very sad when I see that a parent seems to be only concerned about their CSA payments. Even more sad when their OH goes on an Internet forum to to query the paymens.

dzug1

Wiffies wrote: »

Needless to say, the payment was taken by the bank, Santander.

No it wasn't - it was taken by CSA

He asked for the DD guarantee to be honoured, not for the DD to be recalled,

mmm same thing.

After all this, my questions are thus: does the bank, upon refunding the bank account holder, request the money from the beneficiary, paid in error ( in return for paying out to the account holder, in respect of the DD taken in error) and if so, why has the bank taken so long to recall the amount?

Thanks in anticipation.

Of course it tries to get the money back for the cancelled DD - it doesn't just bear the loss

As to why so long - pass. Santander don't seem to have covered themselves with honour over this though

Wiffies

innovate wrote: »

Makes me very sad when I see that a parent seems to be only concerned about their CSA payments. Even more sad when their OH goes on an Internet forum to to query the paymens.

This really annoys me; I asked a question about the bank. The CSA was merely the direct debit in question. I really wanted help with this, as I don't understand about the banking thing. We absolutely struggle with these payments and have frequently gone without to keep her happy. He can't end bank accounts because of her and she has taken out loans, forging his name and all sorts. Even the divorce was hard. She received his divorce petition then started her own, just to be difficult.

My OH has paid on time every month and would be more than happy to make payments, if they actually went to his son. They don't; they go to hiss alcoholic wife, who drinks the lot and he gets nothing! However, this is our stuff to deal with and we will.

This wasn't a question about the CSA it was a question about Santander, yet someone with almost 7000 posts, with clearly more than enough time on their hands to get a life, can sit on that moral high ground, when they don't read the question and actually understand what's being asked.

I spent ages deliberating whether to ask, as so many other posters here have been slated by those who sit above the rest.

So be it; I'll ask the FSA.

To the others; thanks for your help.

Thanks guys!

Buzby

You lose control when you provide details for a DDM. As you have discovered, the Guarantee is pretty worthless. The reason for the instruction in writing is called an 'indemnity'. This means your OH is formally stating the debit was made in error or contrary to the usual conduct of the claimant's account. - the Bank cannot tell one way or the other. It takes up to 5 days to initiate a reversal, after this it cannot be done easily.

It then becomes an issue between the 2 parties to resolve.

Do remember, to cancel a DD, it not onny needs to be cancelled, but also the mandate REMOVED from the account. If not, the originator has 366 days to reactivate it from the last debit taken.

agrinnall

Buzby wrote: »

You lose control when you provide details for a DDM. As you have discovered, the Guarantee is pretty worthless. The reason for the instruction in writing is called an 'indemnity'. This means your OH is formally stating the debit was made in error or contrary to the usual conduct of the claimant's account. - the Bank cannot tell one way or the other. It takes up to 5 days to initiate a reversal, after this it cannot be done easily.

It then becomes an issue between the 2 parties to resolve.

Do remember, to cancel a DD, it not onny needs to be cancelled, but also the mandate REMOVED from the account. If not, the originator has 366 days to reactivate it from the last debit taken.

Have you had a bad time with DDs? The part I've highlighted is simply incorrect, the DD guarantee (see below) specifically states that "you are entitled to a full and immediate refund".

http://www.bacs.co.uk/bacs/businesses/directdebit/collecting/pages/customersrights.aspx

The Direct Debit Guarantee

• This Guarantee is offered by all banks and building societies that accept instructions to pay Direct Debits.
• If there are any changes to the amount, date or frequency of your Direct Debit (insert your organisation name)will notify you (insert number of) working days in advance of your account being debited or as otherwise agreed. If you request (insert your organisation name) to collect a payment, confirmation of the amount and date will be given to you at the time of the request.
• If an error is made in the payment of your Direct Debit, by (insert your organisation name) or your bank or building society, you are entitled to a full and immediate refund of the amount paid from your bank or building society.
  • If you receive a refund you are not entitled to, you must pay it back when (insert your organisation name) asks you to
• 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 us.

JohalaReewi

Yet another story of a Direct Debit Guarantee claim being sidestepped.

Remember:
The DD Guarantee scheme is the scheme which protects the customer against DD errors. With a DD Guarantee claim, the customer's bank makes a full and immediate refund of the DD. The bank should not decide if the DD should have been paid or not. Nor should the bank make the customer wait until the bank has got the money back. A DD Guarantee scheme claim can be made over the phone, in person at the bank, by letter, etc.

The Direct Debit Indemnity is the internal process where the bank gets the money back from the company that took the DD. This is done in writing and can take many days to be succesful.

You can now see why banks are not very keen on sticking to the Guarantee scheme and try to make you wait, or tell you to contact the company that took the money. You often have to remind banks of their obligations.

ankspon

innovate wrote: »

Makes me very sad when I see that a parent seems to be only concerned about their CSA payments. Even more sad when their OH goes on an Internet forum to to query the paymens.

You obviously haven't had all the crap the CSA gives you,when they overcharge you,don't listen to change of circumstances,never refund overpayments,etc,etc

annie1975_2

innovate wrote: »

Makes me very sad when I see that a parent seems to be only concerned about their CSA payments. Even more sad when their OH goes on an Internet forum to to query the paymens.

At the end of the day they shouldnt have taken it.People struggle to pay some of these outrageous figures set out by the CSA.So when the payments are due to stop,they should stop...

janineh1982

innovate wrote: »

Makes me very sad when I see that a parent seems to be only concerned about their CSA payments. Even more sad when their OH goes on an Internet forum to to query the paymens.

I do believe this "person" (i use the term loosely) has absolutely no compassion or wish to help people on this forum. From the various posts i have seen them make, they are a malicious, trouble making individual, who as you rightly pointed out wiffies, should maybe concentrate on getting their own life sorted before critising others!

Good luck with the CSA/DD challenge. I haven't (thankfully) had any direct engagement with S*antader and never will have after joining MSE! However i did have the unfortutnely experience of dealing with the CSA for a number of years whilst my x partner and i were together. It was awful, they don't know left from right and it's only because i literally kept a record of every converstation/scrap of communciation we had with them, we weren't totally and utterly shafted! Good luck!!