Funds Rejected-Direct Debit Debacle

Joe_Bloggs

Every month a fixed amount is taken from my Lloyds Club account via direct debit (less than £10) from the Approx £5000. This money is credited to the Tesco Online Saver account. Two days later the money is removed with the statement line:-

FUNDS REJECTED - DIRECT DEBIT, XXXXXXXXXXXX/YYYYY, 6-No instruction.

Digits have been replaced with X and Y. Paper confirmation follows from Tesco indicating that this event has occurred and that the paying bank has rejected this transaction. The money does not re-appear in any of my accounts.
I contacted the paying bank, Lloyds, who indicate that the onus is on Tesco to sort it out.

Tesco say they ignore any reference and just use account and sort code.The say I should to speak Lloyds. Lloyds say speak to Tesco. What is the way forward.
J_B.

One minor discrepancy is the reference number used/given to Lloyds for the direct debit is XXXXXXXXXXXX/ZZZZZ. The last five digits are different.

Time on phone to date 56 minutes.

YorkshireBoy

Did you upgrade from Vantage to Club?
Did you previously have a DD set up for the 4% on £7K jobby (but never used it)?
If yes to both the DDI has lapsed under the dormancy rules.
Cancel it at the Tesco end and set it up again.
It worked for me.

grumbler

My logic suggests that if Lloyds paid your money to somebody they have to help you trace the money and give some tracing information that you pass to the alleged recipient.

Acquirer Reference Number springs to mind.

Joe_Bloggs

@Yorkshireboy
I have never been with vantage and I have already had the Tescos DD re setup two months ago.
I suspect I will have to cancel and try again with Tesco, but who has got the missing money?
J_B.
Edit
@Grumbler
The money was in my Tesco account before it was whisked away. Tesco do not deny they received it. Lloyds agree that it was sent. Tescos (call staff) seem to think that Lloyds have requested the money back and can fix matters, Lloyds deny that they requested the money back.
J_B.

Archi_Bald

Have you raised formal complaints with both, Lloyds and Tesco?

grumbler

Joe_Bloggs wrote: »

@Grumbler
The money was in my Tesco account before it was whisked away. Tesco do not deny they received it. Lloyds agree that it was sent. Tescos (call staff) seem to think that Lloyds have requested the money back and can fix matters, Lloyds deny that they requested the money back.
J_B.

Then it's Tesco who has to trace it.

Milarky

This is ridiculous. I would simply complain (to Tesco) now and bluntly ask for 50 quid* (twice 25 quid for each anomaly - which is pretty standard) for the poor service. They (Tesco) appear to not have investigated the matter when drawn to their attention (possibly because you didn't go the formal complaint root) or provided you with a formal answer of what happened - let alone sought to reunite you with your money.

*Don't forget to claim for your calls too: 10 quid

Joe_Bloggs

@Archibald,Milarky and all.

I have not tried formally complaining as Tesco send me a letter (I have four) every month to alert me to the matter that an error has occurred.
The letter suggests

if you'd like any more information on why this has been rejected then contact your bank.

The letter suggests setting up a new direct debit (been there and done that) . I will try again to contact Tesco and do this with a proviso that they trace the money on the old DDs.

I posted to see if there was a pattern, if this kind of thing has happened before, and to canvas opinion on the best to way to fix it.


J_B.
Could the error be in the use of AUDDIS ?

YorkshireBoy

Apologies for the earlier speculation. It sounded similar to my own issues (except money didn't leave Lloyds).[QUOTE=Joe_Bloggs;66160866[/quote]FUNDS REJECTED - DIRECT DEBIT, XXXXXXXXXXXX/YYYYY, 6-No instruction.

Could the error be in the use of AUDDIS ?[/QUOTE]No, AUDDIS just sets the DDI up electronically. I would have said it's more likely to be ADDACS. Reason code 6 says "no instruction", but there must be since the money left Lloyds and presumably you can see a DDI on your Lloyds account within online banking?

I agree with the others, and Lloyds, in that it's down to Tesco to sort since they gave you the (value of) the money but then took it away from you 2 days later and moved it somewhere else.