DD cancelled but bank paid out and charged

igaveupnowimback

Hi. Not sure if right place to post. I cancelled an annual DD online with TSB after external company (appliance insurance) gave notice that they were increasing premium by almost 100%, after 9 years paying £34 pa it was going to be £64.:mad:
I did not contact the company, it seemed just another hassle amidst hectic life at moment. Checked cancelled online. Today letter from TSB re overdrawn and charges of £10 per day since last week. TSB paid the company.
Phoned TSB, they confirmed DD cancelled early December, but say company reinstated the DD at new amount. I asked how could they reinstate without my agreement, they say original agreement suffices.
DD code practice seems to say bank not at liberty to pay out post cancellation. Is this my fault, could the fact I didnt contact company be construed as acceptance? TSB say my problem is with the company, I think why does TSB allow cancellation online if it is meaningless ? Apologies for long post, confused.

forgotmyname

Cancelling the payment method doesnt cancel the incurance. You need to cancel the incurance before debts start building and passed onto collectors.

You can cancel it online after cancelling the contract. Thats the point of it.

I was with BT and O2 for phone and BB. I cancelled the contracts and moved to Plusnet. A month later after the refunds got credited i cancelled the direct debits.

The company notified you of the increase and you failed to terminate the agreement.
You need to see if its possible to terminate it now. But they may insist on the amount or charge a fee to cancel early.

Check the terms and conditions.

Hominu

Your bank can cancel the DD, but the provider can setup a new DD.

When you cancel a DD you should inform both parties - the company and the bank.

If you never told the company you wished to cancel the policy and just cancelled the DD, then you still have service and the bank have paid out. You can claim this amount back, but you will still have to pay the company by some other means as you did not cancel the instance policy.

[Deleted User]

Hi,

the insurance company would think that because you hadn't contacted them, that you were happy to accept the new fee.

innovate

In the notice, there were probably words to the effect "you don't need to do anything if you accept these changes, and we will collect £££ from your account not xx/xx/xx.

Thus you had authorised the DD.

kitkat34

hi the above replies are wrong companies cannot reinstate a dd and your bank know that so I would contact them again and insist on the refunding the money and again cancel the direct debit as it should not have been allowed to be reinstated.
The direct debit safeguard info states that companies cannot reinstate a dd without your permission and it also states the you only have to inform your bank to cancel but advises you to also tell the company but you do not have to, however they may still cover you and expect you to pay so its worth telling them you have cancel payment and no longer want the policy.
Just search direct debit rights and safeguards and youll find all this info.
hth
kat

kitkat34

innovate wrote: »

In the notice, there were probably words to the effect "you don't need to do anything if you accept these changes, and we will collect £££ from your account not xx/xx/xx.

Thus you had authorised the DD.

Once cancelled the dd is no longer authorised

igaveupnowimback

"My cancelled direct debit was reinstated. Is this right? ?.. .recently cancelled a direct debit payable to Sainsbury's by visiting her local Abbey branch. Two months later ... direct debit had been reinstated and the money debited each month. She was told by Abbey that she should have informed the company involved to cancel the direct debit, rather than doing so in the branch.
This is not in line with the Bacs website, which says: "Money cannot be collected from your account after you have cancelled. An organisation would have to obtain your authority to reinstate a cancelled instruction."My mother queried Abbey's decision and was told that some direct debit arrangements allow the company to reinstate a cancelled instruction. She was advised to "check the small print" of the direct debit terms. Is she being fobbed off?

She most certainly is. There is an arrangement called a continuous payment authority (CPA), which is similar to a direct debit in that it is a regular payment made to a specific institution. CPAs usually come directly off a credit or debit card and are notoriously difficult to cancel.Only the company that the CPA is set up with has the power to do so. But a CPA is not a direct debit arrangement, so Abbey is completely wrong to have continued to make these payments from your mother's account after she cancelled her direct debit instruction.She really should have informed Sainsbury's that she had cancelled the direct debit - she is not obliged to, although it makes life easier. But her arrangement is with her bank, not with Sainsbury's, so Abbey should not have continued to pay out.Put the complaint in writing to Abbey, demanding the return of both unauthorised payments, plus any charges your mother suffered as a result. Keep a copy of your letter and send it recorded delivery. Send a copy to Sainsbury's as well.

igaveupnowimback

Thanks all, debatable whether I continued to receive the service as payment not retrospective. Need contact the company and try sort from there. BACS website info re cancelling DD seems to say this shouldn't have happened. Anyway, lesson learned.

qazitory

igaveupnowimback wrote: »

Hi. Not sure if right place to post. I cancelled an annual DD online with TSB after external company (appliance insurance) gave notice that they were increasing premium by almost 100%, after 9 years paying £34 pa it was going to be £64.:mad:
I did not contact the company, it seemed just another hassle amidst hectic life at moment. Checked cancelled online. Today letter from TSB re overdrawn and charges of £10 per day since last week. TSB paid the company.
Phoned TSB, they confirmed DD cancelled early December, but say company reinstated the DD at new amount. I asked how could they reinstate without my agreement, they say original agreement suffices.
DD code practice seems to say bank not at liberty to pay out post cancellation. Is this my fault, could the fact I didnt contact company be construed as acceptance? TSB say my problem is with the company, I think why does TSB allow cancellation online if it is meaningless ? Apologies for long post, confused.

Have you contacted the insurance company now as otherwise the same thing will happen again?

grumbler

Hominu wrote: »

Your bank can cancel the DD, but the provider can setup a new DD.

Technically they can (because of the stupid system that is easy to abuse), but this doesn't mean that they have a right to do this.

innovate wrote: »

In the notice, there were probably words to the effect "you don't need to do anything if you accept these changes, and we will collect £££ from your account not xx/xx/xx.

Thus you had authorised the DD.

No way.
The DD has to be authorised explicitly.
Once again the company simply abused the paperless DD system.
They have no right to reinstate the DD and this is a simple case of the getting refunded both the DD and the charges under the DD guarantee.