Santander have cancelled all my Direct Debits!

magpiecottage

YorkshireBoy wrote: »

If you let this complaint go to the FOS, I'd imagine any 'distress and inconvenience' award would be substantial.

D&I payments are generally quite modest. However, Santander is likely to be expected to meet any costs incurred as a result of its error (late payment/default fees, interest etc.)

IrishGypsy

yellowcrocus wrote: »

Thanks, that info is very helpful.

Offices open at 8 today so I shall be on the phone then.

On closer investigation I can see that while I've been on holiday I have defaulted on 2 credit cards, my student loan repayments and 2 mobile phone contracts, some in my name, some in OHs.


I have never defaulted on anything before. We need to move house next year and I am concerned about this impacting on our ability to get a mortgage.

Has your account number and sort code stayed the same or have they changed?

YorkshireBoy

IrishGypsy wrote: »

Has your account number and sort code stayed the same or have they changed?

The account number's the same (see post #4), so I'd assume the sort code hasn't changed either?

YorkshireBoy

magpiecottage wrote: »

D&I payments are generally quite modest.

The examples of D&I awards the FOS give on their website run into several £100's of pounds. I'd say that was "significant", not "modest".

Here are just a few examples...

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/14/feb-awardsfordistress.htm

...but a search of their site will no doubt find other examples.

ses6jwg

This is very very peculiar and it sounds to be very unfortunate.

I've processed around 155 upgrades to 123 accounts since March and have NEVER come across this issue.

It sounds like genuine computer glitch/ error.

innovate

yellowcrocus wrote: »

Thanks, that info is very helpful.

Offices open at 8 today so I shall be on the phone then.

On closer investigation I can see that while I've been on holiday I have defaulted on 2 credit cards, my student loan repayments and 2 mobile phone contracts, some in my name, some in OHs.


I have never defaulted on anything before. We need to move house next year and I am concerned about this impacting on our ability to get a mortgage.

Any conclusion yet, yellowcrocus?

yellowcrocus

To give you an update, on Sunday Santander admitted that the switching team incorrectly cancelled all my direct debits and they reinstated them on the day. They have given me £75 compensation and a promise to pay any charges I incur. They have removed the default on my Santander credit card and say that they will correct any notices on my credit file incurred through other agencies. I was quite pleased with the response, believing the matter to be closed, and all I had to do was to contact the 5 companies who had gone unpaid while I was away.

However, several of the companies I have spoke to have pointed out to me that there is actually no way for Santander to reinstate the direct debits- as they have been cancelled, they won't be requested by the company that is owed. Several of my services have been terminated, my gym membership for example. I am therefore going to have to contact each of the 19 companies that I pay each month individually, reinstate the direct debits on their side and, as apparently it takes 6-8 weeks to get a direct debit going, I am going to have to check my account daily to see if things have been paid and probably pay them manually. In short, a fine old mess, and really not resolved in any way!

pvt

yellowcrocus wrote: »

there is actually no way for Santander to reinstate the direct debits- as they have been cancelled,

I think that's correct. There is a mechanism (AUDDIS I think it's called) for banks to notify companies that a DD has been cancelled or moved to another bank account. But once cancelled the DD has to be re-established by the drawing company.

Hmmmm. Bit of a mess they've made isn't it.

dalesrider

pvt wrote: »

I think that's correct. There is a mechanism (AUDDIS I think it's called) for banks to notify companies that a DD has been cancelled or moved to another bank account. But once cancelled the DD has to be re-established by the drawing company.

Hmmmm. Bit of a mess they've made isn't it.

I wonder, with the onset of the new account transfer process and transfer of DD between banks. If there is someway that they can reinstate them. Maybe as it was their error, they will contact the co's on the op's behalf to get them set up again.
Did they ask the OP for permission to speak to 3rd parties to resolve the issue?

Either that or they simply are not telling the truth.

If I was the OP. I would not sign any letter re the recompense (advise them of this) they have offered till you know all your DD's are up and running.

YorkshireBoy

pvt wrote: »

There is a mechanism (AUDDIS I think it's called) for banks to notify companies that a DD has been cancelled or moved to another bank account.

AUDDIS (Automated Direct Debit Instruction Service) deals with the electronic setting up of DDI's, which is the system the OP's DD originators will now have to follow to reinstate the DDIs.

What you're referring to is ADDACS (Automated Direct Debit Amendment and Cancellation Service).

Just to throw another spanner in the works, there's also ARUDD (Automated Return of Unpaid Direct Debits), which generates a report and reason code which is sent to the DD originator when a DD is unpaid for whatever reason.