Bank charges causing overdraft

Chris1943

Earlier this year I agreed a Direct Debit with my phone company for £38 per month to be taken on the 28th of the month.This was confirmed by email and on the phone. They attempted it on the 13th, and sent me over my overdraft limit. They attempted it twice and this cost me £50 plus £30 for going over my overdraft limit. This is currently with OFGEM. The bank took out the £80 before I was paid and sent me over my overdraft limit again and rejected 5 direct debits totalling £34 which could have been paid had they not taken out the charges. This month they are taking out £156.40 for the 5 unpaid direct debits plus the overdraft charge and interest. This cannot be fair or reasonable. I cannot attempt to reduce my overdraft if they keep on piling on the charges.

dunstonh

This cannot be fair or reasonable.

until a court says otherwise, it is.

What you should have done (and may be possible to still do) is use the direct debit guarantee scheme. If you show the firm took the money on a different date to the agreed schedule then the bank will not charge you as the d/d scheme rules have been broken by the firm.

However, that only applies to the first payment. They are allowed to retry the direct debit on a different date AFTER the due date. Although if it all stems from the first payment then the bank should refund.

Go into the bank with your evidence showing the wrong date was used and ask them to refund the charges due to incorrect use of the direct debit scheme.

OhReally_2

Chris1943 wrote: »

Earlier this year I agreed a Direct Debit with my phone company for £38 per month to be taken on the 28th of the month.This was confirmed by email and on the phone. They attempted it on the 13th, and sent me over my overdraft limit. They attempted it twice and this cost me £50 plus £30 for going over my overdraft limit. This is currently with OFGEM. The bank took out the £80 before I was paid and sent me over my overdraft limit again and rejected 5 direct debits totalling £34 which could have been paid had they not taken out the charges. This month they are taking out £156.40 for the 5 unpaid direct debits plus the overdraft charge and interest. This cannot be fair or reasonable. I cannot attempt to reduce my overdraft if they keep on piling on the charges.

And why is Ofgem involved? Arn't they the energy regulator?

:huh:

Chris1943

Sorry lost it for a minute, I meant Ofcom.

Chris1943

In answer to your query, both attempts at the Direct Debit were before the agreed date of the 28th. I did try the unauthorised direct debit route but was told by the bank it was inappropriate in those circumstances.

dunstonh

The bank gave you wrong information and you should complain.