Direct Debit Protection / Creditor

Slingfox

So I recently setup a payment arrangement with a creditor to help clear some debt.

They spelt my name incorrectly when setting up the DD, so I called them and informed them, they said it's too late now to take payment via a newly created DD, and they informed me that the bank had refused the DD anyway given the spelling mistake so I told them that I'd call back in the new year to set the DD back up.

I then made payment to them manually via debit card while on the phone, however upon logging into on-line banking now, they've taken payment via the supposedly refused DD, how I don't know.

Now my budgeting is very tight, and the reason for being in a payment arrangement is due to lack of disposable income.

Would the DD guarantee protect me here, or would the bank assist?

I'm going to call the creditor tomorrow to discuss the situation with them, as even though it doesn't affect my budget yet, as the month goes on it will become a more prominent hole in this months budget and would end up bouncing another DD due to lack of funds.

stclair

You could claim the funds back under the Direct Debit guarantee scheme.

Under the circumstances you may want to see if the creditor will refund you first.

innovate

Slingfox wrote: »

They spelt my name incorrectly when setting up the DD, so I called them and informed them,

How did you find out they spelt your name incorrectly?

innovate

stclair wrote: »

You could claim the funds back under the Direct Debit guarantee scheme.

How? The DD was authorised.

stclair wrote: »

Under the circumstances you may want to see if the creditor will refund you first.

That might be the best way forward

noizeuk

Slingfox wrote: »

I then made payment to them manually via debit card while on the phone, however upon logging into on-line banking now, they've taken payment via the supposedly refused DD, how I don't know.

Now my budgeting is very tight, and the reason for being in a payment arrangement is due to lack of disposable income.

Would the DD guarantee protect me here, or would the bank assist?

I'm going to call the creditor tomorrow to discuss the situation with them, as even though it doesn't affect my budget yet, as the month goes on it will become a more prominent hole in this months budget and would end up bouncing another DD due to lack of funds.

To be honest, it's a bit wishy washy. You can claim a direct debit indemnity from your bank however your full story does not provide a valid reason to do so. Reason one being, you didn't request to cancel. I also assume you are aware of the funds debiting (invoice) so in essence, should be rightfully prepared to make a payment when due. You also haven't stated that the amount is incorrect, which means you don't fall under that criteria either. Another point, if you have paid off by other means, this most certainly proves it is authorised. Ultimately, its the companies fault so your bank shouldn't get involved.

Not saying you can't be economical with the truth. But that wouldn't be right, surely?

The knock ons you mention, the direct debit bouncing, would need to be covered by the company. However, if it happens that you should claim after this is apparent, the bank will refund it. That's not to say you wont suffer repercussions with the bounced d/d's ie mortgage can affect the credit rating (this wont be considered by the bank).

Good luck.

Slingfox

innovate wrote: »

How did you find out they spelt your name incorrectly?

I got one of those direct debit confirmation letters come through with my middle initial and surname spelt wrong, the same letter that features the rights about the direct debit guarantee.

It's just annoying because I called them and they said "Yeah the bank have refused the DD given the incorrect name, would you like to make a payment manually on the phone to cover this months statement?"

Just been mis-advised, obviously it was in place and hadn't been refused, I shouldn't have taken their word, I really should've checked the bank account for signs of the direct debit.

noizeuk

stclair wrote: »

You could claim the funds back under the Direct Debit guarantee scheme.

Under the circumstances you may want to see if the creditor will refund you first.

Yeah, I don't agree. They see my response above

noizeuk

Slingfox wrote: »

I really should've checked the bank account for signs of the direct debit.

Yes. Also, never ask for active direct debits. As this is your first payment, or soon to be, it would be an instruction (and not active unless payment taken - see natwest online banking for example).

stclair

innovate wrote: »

How? The DD was authorised.




That might be the best way forward

Easy you call the bank and say a DD debited my account in error on x date to x company can I claim it back under the dd scheme. Then the advisor will say yes one moment please I will just action that request for you now.

Then the customer will then have to face the concequencies of the creditor should they have claimed back incorrectly.

Slingfox

stclair wrote: »

Easy you call the bank and say a DD debited my account in error on x date to x company can I claim it back under the dd scheme. Then the advisor will say yes one moment please I will just action that request for you now.

Then the customer will then have to face the concequencies of the creditor should they have claimed back incorrectly.

I'll go down the route of contacting the creditor in the first instance, I'll try and have them refund a payment before I go anywhere near the bank, failing that, a letter of complaint to the creditor, if that fails then I'll go down the bank route last.

I will lodge a note against the transaction with the bank to say that it's being 'disputed' so that if it takes a couple of weeks they don't suddenly say "Why didn't you tell us within days of the transaction appearing?"

stclair

Slingfox wrote: »

I'll go down the route of contacting the creditor in the first instance, I'll try and have them refund a payment before I go anywhere near the bank, failing that, a letter of complaint to the creditor, if that fails then I'll go down the bank route last.

I will lodge a note against the transaction with the bank to say that it's being 'disputed' so that if it takes a couple of weeks they don't suddenly say "Why didn't you tell us within days of the transaction appearing?"

Yeah go down the creditor route first as normally the name would not impact the collection of a DD.