Natwest ggrrrr

bettyboop61

I Wonder if any of you out there can help my daughter with this problem we have with natwest. In november 2006 my daughter cancelled a direct debit with Natwest to stop her rent payment going out, as she had left that property and had moved to another address. On checking her bank account last friday she discovered that her balance was down on what she thought it should be, she went in to the bank to discover that the housing association had set up the direct debit again under the same reference number and the bank let the payments go (she does owe outstanding rent on the previous property and was under heated arguments the the HA rgarding a mutual payment plan) what we need to know is who is at fault here, the bank for letting the payments go out, or the HA for setting up the direct debit again with out permission from my daughter, or both companies at the moment the bank is blaming the HA and the HA is saying they never received any monies from the bank, even though we have print outs from the bank showing the payments going out:o Just wondered what peoples thoughts were on this, any help would be appreciated.

Betty

Fedz

AFAIK.

NatWest isn't at fault they just set-up DDs when they come through.

The HA is at fault for submitting the DD after it'd been cancelled.

Did she just cancel the DD via the NatWest control panel or did she inform the HA also.

When a DD is cancelled at a bank the bank inform them to advise it's been cancelled.

Might be that the HA has waited and taken advantage without her noticing ... naughty HA.

iceicebaby

It will be the HA fault. the bank just pays what is requested of them. For all the bank knows you may have agreed with the HA to reset up the DD

nej

I think the opposite - Natwest ARE at fault.

Any money you might owe the HA is none of their business, frankly.

Phone them up, mention that you want it back under the Direct Debit Guarantee immediately. They might plea ignorance to what that is, or say it doesn't apply, or that it'll take 2 days, or that you have to chase the HA or whatever

This is rubbish. If the DD was cancelled, then it IS the banks error and under the DD Guarantee they have to immediately refund your money.

I had this last week (they paid a cancelled DD), and they eventually agreed to refund within 24 hours.

iceicebaby

Not so. the OP has said that the HA has set up the DD again AFTER it has been cancelled. The bank aren't to know that the OP has agreed to this with the HA or not. the bank has no control over a DD, the originator has all the control.

I deal with DD and the legalities and the workings of it all day for my job.

You can however ask the bank to refund the money under the DD guarantee. This exists in the case of any errors that are made, whetehr it be by the originator or the bank. You then need to advise the HA that you do not give then any further authority to set up a dd on your account

bettyboop61

Thankyou all for your replies, some interesting reading I must admit, we have been to the bank again and they have raised a DD indemnity form and will contact my daughter on thurs with the outcome!
Betty

nej

iceicebaby wrote: »

Not so. the OP has said that the HA has set up the DD again AFTER it has been cancelled. The bank aren't to know that the OP has agreed to this with the HA or not. the bank has no control over a DD, the originator has all the control.

I deal with DD and the legalities and the workings of it all day for my job.

You can however ask the bank to refund the money under the DD guarantee. This exists in the case of any errors that are made, whetehr it be by the originator or the bank. You then need to advise the HA that you do not give then any further authority to set up a dd on your account

That's kinda my point, the bank didn't know, so they shouldn't just arrange to take money from somebody's account without checking with the account holder. Otherwise every DD I've ever had in my life could start being taken again without my consent, even though they are cancelled. It makes cancelling them a bit pointless.

If a bank sets up a DD without account holder permission, it is at least morally wrong, which is what the DD Guarantee tries to uphold.

iceicebaby

Except for a bank does not set up a direct debit, the originator does. All a bank does is pay what the originator asks

Fedz

I'm of the same view as you IceIceBaby.

They do have permission as they re-submit the original DD mandate.

In fact it has happened to me as ntl (now Virgin Media) re-submitted an old DD after I'd cancelled it.

I rang the bank and they said they simply honour submitted DD from the originator, they aren't to know you haven't autherised it.

I called ntl who admitted they re-submitted it as they thought I'd cancelled it by mistake :rolleyes:

My own bad really as I use internet banking daily and never thought to check my DD's - had I done I could've cancelled it again before they drew on it

I hope the OP does get it returned under the DD guarantee

Does the bank pay it out of their own pocket or do they claim it back eg: from the HA?