Direct Debit Indemnity and Paypal

Shortie4

I have just been told by my bank that the Direct Debit indemnity doesn't apply to Paypal and that even though they have taken a duplicate direct be debit from my account leaving me without any money for the Easter weekend there is nothing that they can do about it, is this true?

grumbler

You've been told porkies. There are no any exclusions in the DD guarantee.

GingerFurball_2

Shortie4 wrote: »

I have just been told by my bank that the Direct Debit indemnity doesn't apply to Paypal and that even though they have taken a duplicate direct be debit from my account leaving me without any money for the Easter weekend there is nothing that they can do about it, is this true?

If PayPal have made an error you're still covered.

Shortie4

That's what I thought but the bank are adamant that they can't do anything about it

grumbler

They are fobbing you off. Don't let them do this.
If you tell them that the DD transaction was incorrect they have to refund it immediately. If they refuse, take the name of the person giving you runaround and don't hesitate to start a formal complaint.

If an error is made in the payment of your Direct Debit, by the organisation or your bank or building society, you are entitled to a full and immediate refund of the amount paid from your bank or building society

http://www.directdebit.co.uk/DirectDebitExplained/Pages/DirectDebitGuarantee.aspx

grumbler

Are you sure it was a DD, not a card payment?

Shortie4

Definitely a dd payment taken twice

pvt

Shortie4 wrote: »

I have just been told by my bank that the Direct Debit indemnity doesn't apply to Paypal and that even though they have taken a duplicate direct be debit from my account leaving me without any money for the Easter weekend there is nothing that they can do about it, is this true?

What did PayPal say when you contacted them about their error?

SimonSays

Is this the Co-op bank? When I banked with them, They told me the guarantee only applied to certain direct debits. RAC/Paypal/others were excluded.

Total cr*p mind you. But they were pleasant when they told me.

I told them I don't care about their internal rules I am following the guarantee rules.

Buzby

The bank is correct, PayPal is an intermediary, and any possibility of getting a reversal diminishes considerably - there would have to be a primary error (in that you never authorised PP at any point).

You have not clarified what your dispute is - but assuming it was because a merchant of PP requested money from you VIA PP, then there is no DD guarantee. Your recourse is through PP's disputes proceedure.

You are attempting to circumvent (or at least short-circuit) the recognised disputes route, it would be better to read PP's T&C for more. Your reversal request if granted means PP will default your credit file if you do not pay any amount owed within 30 days.

As for the RAC being exempt from the Guarantee, that is nonsense - as they are a standard merchant and not a funds processor.

grumbler

Buzby wrote: »

The bank is correct, PayPal is an intermediary,

This is irrelevant.

there would have to be a primary error (in that you never authorised PP at any point).

And this is absolutely untrue. All DDs are authorised at some point and all can be claimed back.

The DD guarantee is very short and perfectly clear. There is no place for any interpretations or additions.

DD is a system with preset clear rules. Paypal are free to use it or not to use. They can perfectly do their business with card transactions. If they want to use DD instead and benefit from this, they know that the rules are different and there is a risk of indemnity claims.