Mobile contracts & direct debits

kennywebb

During the past 2 years I have had 2 separate providers continue to take their monthly direct debit after the contracts were cancelled. One actually admitted their mistake eventually and is in the process of refunding the funds.
However, the other actually filed a default with credit reference agency after I stopped the direct debit and I had to pay them to get it removed.
During negotiations with the current dispute they actually told me that stopping the direct debit 'could' result in a bad credit reference!

Is this a common thing today? Its happened to me twice in 18 months and I have currently stopped 2 direct debits to the same provider because I don't trust them to stop taking payments!
I am not a mass phone user, but had 3 teenage daughters that I paid contracts for until they were old enough to have their own!!

Silk

kennywebb wrote: »

Is this a common thing today? Its happened to me twice in 18 months and I have currently stopped 2 direct debits to the same provider because I don't trust them to stop taking payments!

It's only common when it's not been done in the proper manner as per the T&C's .
Was this done by email writing or phone ?
Were the contracts at the end of their term ?

macman

If you cancel the DD once the contract has ended and you have paid the final bill, then this cannot happen. And if it does, then the bank is at fault and must immediately refund you under the DD guarantee.
The supplier/recipient cannot cancel a DD, only the account holder can. All they can do is stop drawing on it. But it still remains active until you cancel it.

Guys_Dad

and there will always be a "Final bill" that sweeps up any uncharged calls etc. This can only be prepared after the contract ends, so leave a window of a month before cancelling any DDs.

kennywebb

The only option was to cancel by phone, and the cancellation was not done. In both cases I was informed that the contracts, which had passed the end of their term by some time and were on a rolling monthly term, had been cancelled.

I have recently asked to pay off the remaining term on a contract and this was denied, I had to obtain a PAC and use it before the contract could be ended. I have done this and stopped any further DD, preferring to pay the final bill by other means when it arrives

macman

Contract don't reach the end of their term. They have a minimum term, after which the contract continues until such time as you give 30 days notice.

Silk

kennywebb wrote: »

The only option was to cancel by phone, and the cancellation was not done. In both cases I was informed that the contracts, which had passed the end of their term by some time and were on a rolling monthly term, had been cancelled.

If the only option given was by phone then you will have to ask for a transcript of the call in order to prove your case

kennywebb wrote: »

I have recently asked to pay off the remaining term on a contract and this was denied, I had to obtain a PAC and use it before the contract could be ended. I have done this and stopped any further DD, preferring to pay the final bill by other means when it arrives

Yes a pac code will terminate a contract before it comes to term but you will still be liable for the rest of the term and remember if you do not get paper bills it is unlikely you will be able to access an online one if the contract has ended depending on the provider

kennywebb

I don't appear to have explained myself too well, both contracts were out of term, and both were given the one month notice, hence the DDs still being current. I wrongly assumed both companies would cease taking funds. When I eventually stopped the DDs I was given a default on my credit record by the first company. They denied my call to cancel, they had no transcript because as far as they were concerned I never made the call. The second company said exactly the same until I persisted by other routes, and they 'found' the cancellation and are in the process of refunding me.
To avoid this happening with no.3 I have obtained and used my PAC, informed them I will pay the final bill when it arrives, and cancelled the DD, which had just paid the penultimate last months bill.

Having searched their social media website, I find that this is about the biggest complaint and wonder how widespread it is and should the companies involved be taken to task?

macman

Yes, they made the error. But had you cancelled the DD's after the final bill (or what should have been the final bill) then they could have taken no more payments.

grumbler

If you cancel over a phone you have to insist in a written (or e-mail) conformation of the cancellation and cannot make any assumptions without receiving the confirmation (or the final bill).

Porting the number out does ensure the cancellation, but does not mean that you can cancel the DD without making sure first that you don't owe anything. IMO, it makes no sense to rush with cancelling the DD as it's better to have an erroneous payment taken and claim it back (from the network or from your bank under the DD guarantee) than to have your credit files trashed.

kennywebb

Thanks guys, Guess I screwed up, but so frustrated trying to get them to admit they had made an error. Their Indian call centre seem to have a separate agenda to UK, but its next to impossible to involve UK operatives.

Will make sure I pay the final bill as soon as it arrives.