Direct Debit change, bank charges

rufio89

Hello.

I've had a direct debit set up for my council tax since January of this year. I get paid on the last working day of each month and so I arranged the direct debit for the 1st of the month.

I've not been spending much money this month so I havent bothered to check my account properly, just had a quick glance a couple of times to check that a couple of large transactions have gone in/out, so it wasnt until today that I logged on and had a proper look.

So today I went on my online banking to check through all of my transactions for the month and I've seen that the direct debit for the last 2 payments has gone out the 28th of April and then today, the 28th May. Because this is so close to payday, it means it has taken me into an unarranged overdraft and so for these two transactions I am being charged £25 each. I have my phonebill due to come out tomorrow and I should have had just enough in the account to cover this, so it also means that when my phonebill comes out, because I'm already into the unarranged overdraft, I'll be charged again for this, bringing it up to £75.

I spoke to the council tax office this morning (after spending 25 minutes on hold!) and apparently whoever set up the direct debit on the account had selected the 28th of each month and then set a manual override for the rest of the tax year, making the date the 1st. They've officially changed the date now so that all future payments will come out on the first of the month, but when I asked about my bank charges they said that the direct debit date would have been on the council tax bill I recieved for the year.

I'm at work right now so I cant double check it, but is this argument enough from their side? I opened the bill, checked that the amount hadnt quadrupled since last year and it didnt even occur to me to look at the direct debit date, why would it change?

If anyone can offer any advice I'd really appreciate it. I'm desperately trying to pay off all my debts before the end of 2013 so I cant really afford to just throw £75 down the drain

dunstonh

I've had a direct debit set up for my council tax since January of this year. I get paid on the last working day of each month and so I arranged the direct debit for the 1st of the month.

Direct debits give you no control over the date. That is with the originator (the council). THe originator then writes to you confirming the dates and amounts. This usually appears on your council tax notice.

I'm at work right now so I cant double check it, but is this argument enough from their side?

Yes. They are required to give you at least 10 days notice of amount and date. The council tax notice satisfies this requirement.

it didnt even occur to me to look at the direct debit date, why would it change?

Many reasons why it could change. Banks charge more for end/start of month dates and many firms are moving away from those dates due to cost.

rufio89

Hi thanks for your reply.

That's the thing though, you DO get to choose with council tax. I have various other direct debits that come out at the time of the company's choosing, but with council tax they specifically ask you which date you would like the direct debit to come out and I asked for the 1st of the month so it would be the day after I've been paid.

This direct debit has come out 4 months running on the correct day and their reason for it changing is not any sort of business decision on their part, it was (admittedly from the council tax office) a failure on the part of the person who set the direct debit up in the first place.

dunstonh

That's the thing though, you DO get to choose with council tax.

You misunderstand. You do not get to choose at the bank. The originator may give you a choice but you are totally reliant on what they give you.

This direct debit has come out 4 months running on the correct day and their reason for it changing is not any sort of business decision on their part, it was (admittedly from the council tax office) a failure on the part of the person who set the direct debit up in the first place.

Well, you have a choice. They have said they are not paying the charges. So, you now pay your money and take them to court. They will show their evidence of payment dates which they stuck to. You will provide your evidence. You will then rely on what the court say.

Wywth

rufio89 wrote: »

Hello.

I've had a direct debit set up for my council tax since January of this year. I get paid on the last working day of each month and so I arranged the direct debit for the 1st of the month.

I've not been spending much money this month so I havent bothered to check my account properly, just had a quick glance a couple of times to check that a couple of large transactions have gone in/out, so it wasnt until today that I logged on and had a proper look.

So today I went on my online banking to check through all of my transactions for the month and I've seen that the direct debit for the last 2 payments has gone out the 28th of April and then today, the 28th May. Because this is so close to payday, it means it has taken me into an unarranged overdraft and so for these two transactions I am being charged £25 each. I have my phonebill due to come out tomorrow and I should have had just enough in the account to cover this, so it also means that when my phonebill comes out, because I'm already into the unarranged overdraft, I'll be charged again for this, bringing it up to £75.

I spoke to the council tax office this morning (after spending 25 minutes on hold!) and apparently whoever set up the direct debit on the account had selected the 28th of each month and then set a manual override for the rest of the tax year, making the date the 1st. They've officially changed the date now so that all future payments will come out on the first of the month, but when I asked about my bank charges they said that the direct debit date would have been on the council tax bill I recieved for the year.

I'm at work right now so I cant double check it, but is this argument enough from their side? I opened the bill, checked that the amount hadnt quadrupled since last year and it didnt even occur to me to look at the direct debit date, why would it change?

If anyone can offer any advice I'd really appreciate it. I'm desperately trying to pay off all my debts before the end of 2013 so I cant really afford to just throw £75 down the drain

If you've not benn given advance notice, claim direct from your bank under the Direct Debit Guarantee

dunstonh

Wywth wrote: »

If you've not benn given advance notice, claim direct from your bank under the Direct Debit Guarantee

The op has confirmed he was given advance notice but he didnt read it. I ruled that option out for that reason (otherwise it would be an option)

Wywth

dunstonh wrote: »

The op has confirmed he was given advance notice but he didnt read it. I ruled that option out for that reason (otherwise it would be an option)

Where? :huh:

The OP said the council claimed they have given advance notice on the bill, but as the OP is not currently at home they have not been able to confirm what the date on the bill says.

Of course, if the OP has been given the correct advance notice, then it is their own fault. DD's may not be collected before the date given in the advance notice, but may be collected up to 3 working days thereafter.

dunstonh

From the posts:

they said that the direct debit date would have been on the council tax bill I recieved for the year.

and

I opened the bill, checked that the amount hadnt quadrupled since last year and it didnt even occur to me to look at the direct debit date