Direct Debits Taken After Death

Olive123

Hi Spacey2012
Thank you for that information. Can you tell me where I might find out more about that? I'm not sure what amounts to a service contract but it sounds like the type of thing that is involved in this case.

The money taken was not for goods. All the companies that refuse to reimburse were selling services that were not used after death and in most cases could not be used before death for quite a long time.

agrinnall

Unfortunately you can't be sure that anything spacey2012 says is really correct, those of us who have seen his posts on a wide range of subjects have also seen how often they are shown to be utter nonsense - I'm not saying it is in this case, but I treat every post with a large pinch of salt. And of course, you have no idea whether I, or anyone else who replies, actually has relevant knowledge or is just making it up - that's the risk you run asking on the internet.

If the sums involved are large enough to make it worthwhile pursuing I would suggest that you get some proper legal advice on how you can proceed and what your chances of recovering the money are. If you have legal cover with your household insurance it might cover this, although I wouldn't guarantee it.

alanq

Olive123 wrote: »

I had hoped that there would be something in English law about the contract between the person and the company concerned ending when that person died,

I'm no expert but I think not. I recall complaints that when people died in care homes the owners claimed x weeks' fees from the estate because the resident had "left" without giving the required period of notice as required in their contract.

jonesMUFCforever

spacey2012 wrote: »

It would depend on which types of contract, a service contract ends upon death and so does any right to collect upon it.

Companies and banks have crystal balls do they? As I stated until someone informs them of the death they cannot take any action.

antrobus

spacey2012 wrote: »

It would depend on which types of contract, a service contract ends upon death and so does any right to collect upon it.

Olive123 wrote: »

Hi Spacey2012
Thank you for that information. Can you tell me where I might find out more about that? I'm not sure what amounts to a service contract but it sounds like the type of thing that is involved in this case. ....

I'm reasonably sure that, if the deceased had signed a 'service contract' that involved them in providing a service, the doctrine of frustration would apply, and the contract would be discharged by their death.

However as a general rule, I'm not convinced that the death of one party discharges a contract. Normally what happens is the the liability that would have been the deceased's, now falls on the personal representative. Such would be the case for contracts involving the payment of rent, loans etc.

Olive123 wrote: »

....The money taken was not for goods. All the companies that refuse to reimburse were selling services that were not used after death and in most cases could not be used before death for quite a long time.

It's perfectly possible for someone to take out a contract for a service and then not use the service. Not using the service doesn't effect the liability to pay for it. I'm not convinced that not using the service for a very good reason (such as being dead) changes that.

Thrugelmir

Olive123 wrote: »

All the companies that refuse to reimburse were selling services that were not used after death and in most cases could not be used before death for quite a long time.

What sort of services are you referring to?

DaveTheMus

Olive123 wrote: »

Hi Spacey2012
Thank you for that information. Can you tell me where I might find out more about that? I'm not sure what amounts to a service contract but it sounds like the type of thing that is involved in this case.

The money taken was not for goods. All the companies that refuse to reimburse were selling services that were not used after death and in most cases could not be used before death for quite a long time.

Spacey2012 will not tell you where you can find out more about that I'm afraid, because he does not know. Most of his posts are complete nonsense.

Olive123

Hi Thrugelmir
One of the services was insurance. The direct debit for about £1000 was taken after the death, for the coming year's insurance, but the insurance was invalid even before the direct debit was taken because the property was unoccupied, because of the death.
Another was for gym membership, it had already not been used for several years before death, about £700 was taken by direct debit after death, but this could not be used by anyone other than the deceased.
Another was for car insurance, but the deceased was unable to drive, had no car and no license for a period of time before death.
There were other direct debits taken for other things, but I would have to write an essay to cover them all.

Olive123

My main point is that there can be situations where people have been unable to stop direct debits for perfectly good reasons, but where no loss has occurred for the business that claimed the money. Then it is not acceptable for them to keep the money.
If the current regulations around direct debits allow them to do so, those regulations are allowing misuse of a payment system that people are generally reassured is a safe one to use.

I am not saying that the banks were wrong to pay them, nor that the businesses were wrong to claim them. I am saying that, having been informed of the circumstances, the businesses concerned are acting disreputably.

It is not the same as direct debits for loans, or rent. A loan must be repaid, along with all other debts. When someone has died, if their landlord is unable to rent premises to somebody else then there is a loss for that landlord, so there is some justification for them keeping the money.

The direct debits that I am trying to reclaim were not in return for anything at all. The businesses did not supply anything, nor did they lose the opportunity to supply a different customer. There has been an understandable mistake in them claiming that money but now that they know the circumstances they should be willing to refund it, minus their admin charge for doing so.

le_loup

I'm sure if you send these people a copy of the death certificate, they will refund the money. I'm sure they all hear many reasons as to why people want to backtrack on commitments made, one of which might be that the "I just died, can I have my sky subscription back".