Help!! Stuck in the middle of two companies with neither taking responsibility‏

plant007

Thanks for looking at my post. Any help would be really appreciated

I am having an issue with my Bank, Smile, and a company called Streetwise who produce subscription magazines, specifically in this case a magazine about buying houses at Auction (Property Auction News). Neither are taking responsibility for the following issue and I have been left stuck in the middle and was wondering whether anybody could help

I took out a annual subscription to this magazine, paying by Delayed Action Bankers Order (DABO - signed 4/4/11) with payment of £59 being taken 30 days from the receipt of this written DABO, in this case 12th May

The DABO also states '..thereafter, commencing on the first anniversary of this order, please pay one hundred and twenty seven pounds annually, until countermanded by me in writing.....'*

My bank paid the £127 annual subscription renewal on 12th April. This was a shock to me as although I had signed the DABO a year earlier, I had obviously forgotten about it (being a year before) and as I had bought a property I did not need the magazine. Streetwise did not send me any notification that the payment was coming, as I assume is best practice in situations such as this and refused to give me a refund as they claimed royalties had been paid, printing and ordering of materials had been action, and that subscriptions are front loaded. Because of this they had a policy not to pay refunds which again seems at odds with what I would consider best practice . The feeling I got was that I had fallen into a trap. My bank also spoke to them and had the following comment

'In effect, Streetwise are advising you that since the annual subscription has been paid, you are obliged to remain a subscriber to their magazine for the entire period, and that they can't offer a refund for a cancellation requested after a payment has been made.
It's possible that this is the case, but it seems a rather harsh rule, and extremely inflexible. Most companies would be able to cancel a subscription and refund the amount for the remaining period. That seems to me a standard procedure, and the one that should have been actioned in this case. It seems strange to me that Streetwise refuse to do this. It's doubly-strange if you haven't been notified of this in writing prior to the renewal date. '

In fact, when I saw the money had left my account (and before it reached the Streetwise account), I called Streetwise to cancel my subscription

It also turns out that Streetwise believe my bank paid the money a month early, over a confusion in the wording of the DABO (See *). Streetwise believe they should have been paid on the 12th May and not the 12th April when my Bank paid and my bank believe they paid on the correct date.

'Our position is that the money that has been paid to Streetwise has been paid according to the instructions we received, and that they should issue a refund for the remaining period, like any other company would under those circumstances.'

If this is the case, then surely the bank could be liable to refund me the money as they have denied me the opportunity to cancel my subscription in time

Both sides believe the other is the organisation I should be chasing for the money. Any help in what I should do in this scenario, or what my rights are, would be greatly appreciated. As you can tell, I have been chasing this since April last year and don't seem to be getting anywhere

Valli

Well, first of all have you WRITTEN to streetwise NOW to cancel your membership? If not write, send it recorded, keep a copy.

Otherwise they will have ANOTHER £127 coming to them in a couple of months.

Savvy_Sue

If it had been a DD, then I'd say Smile could (and usually would) refund you under the DD guarantee.

Also, reading the DABO I'd say it's quite clear that the anniversary of the order is 12 months after you signed it, so I don't think it was paid early.

Streetwise may not be being reasonable, but I'm not sure they're acting illegally ...

InsideInsurance

My problem is that I have never heard of a "Delayed Action Bankers Order". Whilst I have never been on the coal face of banking I am surprised that its a term thats totally new to me. Googling there is only this site and 1 other page in all the billions of sites out there where the term is mentioned.

Either they have knowledge of some very obscure payment method or it is really something else. If it is something else (eg DD or SO) then we would need to know what it really is to be able to advise.

As the poster above says though. You have still not given cancellation notification as required by your contract so make sure you do that as a priority

plant007

Many thanks for all your helpful replies.

I'm fairly positive I cancelled this at the time but I have emailed them again to confirm the cancellation.

I have also not heard of a DABO before this and it is because of the delay in the first payment that the confusion has arisen in terms of the payment date. I agree, Sue, and think the bank are correct but that means Streetwise don't understand their own payment method TnCs

The DABO was under Standing Orders in my Smile Account webpage so I assume the DD guarantee would not be applicable

I hope these answers help

In terms of acting illegally, I can understand that technically they may not have to advise me a payment is coming out (however frustrating) but to not be able to provide a refund under any circumstances seems to me open to challenge

Valli

Please bear in mind OP that you have to give WRITTEN cancellation - an email may not be accepted. Read your contract carefully and check!

Given the time lapse since the payment it would appear, unfortunately, that you have now lost the £127 assuming that Streetwise have fulfilled their side of the contract and sent you what you have paid for.

InsideInsurance

So it is simply a standing order which they have given a silly name to. The one advantage of it being such means you can cancel the SO at any time. Of cause they could resubmit the form but a bank should query any instructions submitted so long after the date on the signature.

There is nothing "illegal" they have done. By the sounds of it they have followed the terms of the contract and so there is no breach of contract either. In certain regulated industries (eg insurance) the company is required by law to inform you of renewal beforehand but out side of that they dont.

Personally wouldnt rely on an email for something that says it requires it in writing. Send a letter, get proof of postage (doesnt need to be recorded delivery). Under English law a letter posted is considered received unless evidence can be presented that it wasnt.

plant007

Thanks

I will sort out a letter if I did'nt send one previously, which my email will confirm whether I did or not. As you say InsideInsurance, I cancelled the SO as soon as this happened so should be safe, and thanks for the status on delivery of letters