Looming doom for people claiming back DDI's from banks??

krayfish

Hi my first post !!
been lurking for a while

In a nutshell......

A lady I work with has recently spoken to a solicitor who had informed her of a new way to claim money back from something called DIRECT DEBIT INDEMNITY...

Being hailed as the new PPI money for nothing idea .....

What he told her to do was download all her DD's and send them to him, he then goes through them to see what DD's are incorrect, I'm unsure of the ins and outs but I'm sure the experts here will be familiar with what I'm going to say next...

Within days your new solicitor friend will ask you to call the bank and give your permission to speak to the solicitor and within hours you could have 1000's paid back.

Now the lady I work with got back over 9k in total !!!

That's correct £9,000 paid into her account with hours.
Solicitor takes a cut for his time and your told not so spend it for 14 days to make sure all is good.

Now this sounds like a scary setup to me and on hearing the news my other friend in another department got back £7500 after 1 week of emailing all of her DD's too.

Now I'm presuming it is price increases or wrong dates these DD's were taken on and the solicitor is basically telling the bank they have to force a refund for the DD's that were taken but surely this opens you up for all kinds or legal issues and counter claims
as the companies and services you had the DD's set up with have had no time to respond, comment or explain their side and the banks simply pulled your money back for the services they supplied due to small discrepancies in the amounts.

Sounds like an absolute minefield waiting to blow up and I'm worried they are going to end up in a world of trouble when it back fires on them.
I have no intention to do this, and want to let the qualified people here to let people know what they are leaving themselves open to ie CCj's black listed, credit history screwed up because this sounds like it could go horrifically wrong for them in the long run!!!

These DD's were set up under contract and they will want that paying back !

Comments welcome guys and girls just make sure you know what your doing.

picky123

Fourth dd indemnity claim post this week, is this the start of a big problem as all those ppi scammers run out of mugs?

You are right, anyone can make an indemnity claim, and he bank are duty bound to pay it back, without any questions, it is part of the dd guarantee at the bottom of every dd mandate.

There are a few main reasons, the most common are amount is wrong, or not notified of the payment within the time limits.

However, the bank then goes to the company who received the dd money in the first place, the company will have supplied either goods or services, so they will then come after the customer to get the money back.

If your friend got £9k and paid the scammer £1.5k for the service, then they will be out of pocket to the tune of £1.5k when all the companies want their money back. Right mess.

dunstonh

A lady I work with has recently spoken to a solicitor who had informed her of a new way to claim money back from something called DIRECT DEBIT INDEMNITY...

D/D indemnity has been around 25-30 years.

Are you sure this was a solicitor and not one of the current scam claims companies that told her? A lot of people mistake these unqualified chancers as solicitors.

I'm sure the experts here will be familiar with what I'm going to say next...

yes. Its a scam. We have had multiple posts this week about it.

Now I'm presuming it is price increases or wrong dates these DD's were taken on and the solicitor is basically telling the bank they have to force a refund for the DD's that were taken but surely this opens you up for all kinds or legal issues and counter claims
as the companies and services you had the DD's set up with have had no time to respond, comment or explain their side and the banks simply pulled your money back for the services they supplied due to small discrepancies in the amounts.

No its a fraud. They tell the bank a lie, in your name, and the bank refunds the money and writes the companies (via their bank). When the companies tell your bank that the payments were valid and under contract, the bank takes the money back from your account. The bank may also close your account and blacklist you for trying to defraud them.

Sounds like an absolute minefield waiting to blow up and I'm worried they are going to end up in a world of trouble when it back fires on them.

As they used to say on Hustle, you cannot con an honest man. People who are greedy and happy to commit fraud are the only ones that are likely to be caught by this scam.

General rule of thumb, never act on cold calls. I get several scam calls a week. You get fake sky box warranties quite regularly. I had a new one this week telling me my boiler was going out of warranty by someone claiming to be my warranty company (obvious scam as it is 16 years old). Pension review scams, offshore investment scams. Property scams. Many PPi calls are scams. Mortgage mis-sale scams and now this one. If you assume every cold call phone call is a scam then you wont get your fingers burnt.

krayfish

Hi guys,

My apologies I did do a search before I posted so didn't realise it had already been discussed so sorry to bring it up again.

My colleagues are telling me that this person is an"solicitor" but what's worrying is once they give this person authority to act on your behalf via phone you are then cut off to let him/her deal with getting the money paid back into your account.

All sounds concerning to me personally and as you pointed out, once you have to pay it back you will be short because of the cut this person took plus the extra worry and hassle of the companies wanting their money back (and quite rightly too) specially as you have enjoyed their services ie SKY/Virgin/insurance/power companies etc....

it's a very slippery slope

Pearl1

I'm in a similar situation

https://forums.moneysavingexpert.com/discussion/4901517

picky123

krayfish wrote: »

Hi guys,

My apologies I did do a search before I posted so didn't realise it had already been discussed so sorry to bring it up again.

Don't worry about multiple posts, more posts the better as more people will see them and think twice. The whole thing is a very very bad idea. As you say yes I can claim back my sky payments, but then sky will want their money back.

The dd indemnity does have very valid reasons, I am just waiting for £11.5k to be refunded for a supplier who dd'd us for goods not supplied.

dunstonh

My colleagues are telling me that this person is an"solicitor"

Solicitors do not cold call. They are not allowed to. Have your colleagues verified that they are actually solicitors? A lot of claims companies may use words to suggest they are solicitors or give that impression but they are not.

The direct debit indemnity scheme is designed to alleviate concerns about incorrectly taken direct debits. The minute they are verified to be valid and correct in terms of the agreed mandate, then the bank will take their money back.

The bank uses it's own money to refund you immediately. It then goes to the companies to get a refund or to supply information confirming the mandate and payments are correct. If the company pays up, the bank gets its money back. The company when then come after you directly for the money. They may also withdraw services and take you to court if you dont pay the money. If the company supplies the bank with the mandate and confirmation that the payments were taken within the d/d scheme rules then the bank will not get its refund and the bank will take money back out of the account.

krayfish

Well it seems your right, he's not a solicitor or even affiliated with the company he came through on!!!

Crazy just hope the two ladies manage to give money back and learn that there is no such thing as free money!!

Plus avoid any prosecution!

[Deleted User]

krayfish wrote: »

Well it seems your right, he's not a solicitor

Didn't see that one coming….
The whole scheme is a scam, of course he claimed to be something he was not...

krayfish

Well thank god I didn't get pulled in by it it's not looking so rosy for these that did though.