Direct debit incorrectly taken

saver101_2

Hi,
I had a pet insurance policy with AXA who have since withdrawn from the market. They passed details to the new provider who I did not get any details from so therefore I had not signed up with. However, they have taken a direct debit out although I did not any forms for this or confirm verbally. After quite a bit of time emailing I got nowhere when I asked them to refund the bank charge I've incurred because of this, so I did an official complaint and they've agreed to refund if I send a headed letter from my bank and they will issue a cheque which is great but I can't help feeling a bit put out that it's a hassle for me as the bank will be a special trip and I've already spent a few hours of time emailing and phoning about this. In my opinion they broke the direct debit guarantee so what soother people think?
Thanks

sheramber

This has been happening to many people. There is a thread on the Pets and Petcare gorum.

Acording to NCI's website FAQ

We’ve noticed that in some instances customers are receiving communication from Close Premium Finance before they’ve received a renewal invite from ourselves, we’ve changed this process so you’ll now receive your renewal invitation letter first.


It seems they haven't improved despite the above.

If they don't have a direct debit signed by you they have taken the money without authority.

Previously, the finance company who are dealing with the DD's stated they had done this to ensure the policy did not lapse due to delay in payment being made because NCI had not sent out the renewal notices in time due to 'experiencing problems'.

wealdroam

saver101 wrote: »

Hi,
I had a pet insurance policy with AXA who have since withdrawn from the market. They passed details to the new provider who I did not get any details from so therefore I had not signed up with. However, they have taken a direct debit out although I did not any forms for this or confirm verbally. After quite a bit of time emailing I got nowhere when I asked them to refund the bank charge I've incurred because of this, so I did an official complaint and they've agreed to refund if I send a headed letter from my bank and they will issue a cheque which is great but I can't help feeling a bit put out that it's a hassle for me as the bank will be a special trip and I've already spent a few hours of time emailing and phoning about this. In my opinion they broke the direct debit guarantee so what soother people think?
Thanks

Yes, they broke the Direct Debit Guarantee.

The Direct Debit Guarantee says that your bank will refund you if money has been taken erroneously.

Here's a quote:

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.

Insist your bank provides 'a full and immediate refund of the amount paid'.

Of course you'll need to pursue the new insurers for the refund of any bank charges directly attributable to their error.

saver101_2

Thank you for your replies. The thing is I'm really angry that it seems they can take money and get away with it , just by saying they will refund. Surely they have broken some regulation as I did not sign up with them? Any ideas as I really think this needs an official complaint making about it but to whom I don't know. I'm not the only person it's happened to.
Thank you

Armorica

Just call your bank. Can probably avoid the need for the letter.

Bank should 'immediately' refund you the DD and waive any associated o/d charge. Before asking, it would be good if you could locate any communications/check the name it was taken under. There are quite strict rules about the name that Direct Debits can be claimed under - they may not have stuck to these.

This should trigger a form of complaint i.e. it is the bank who sponsors them to take Direct Debits in the first place who will probably be least amused.

It doesn't break regulations to transfer insurance contracts (in fact, it can be encouraged as it ensures there is no break in coverage or double-coverage) but it has to be done 'right'

wealdroam

saver101 wrote: »

Thank you for your replies. The thing is I'm really angry that it seems they can take money and get away with it , just by saying they will refund. Surely they have broken some regulation as I did not sign up with them? Any ideas as I really think this needs an official complaint making about it but to whom I don't know. I'm not the only person it's happened to.
Thank you

Did you look at the link I provided?

By clicking on How to complain down the left hand side, you would've found:

The Bacs complaint procedure for Direct Debits

There you can see how to take your complaint to BACS or right through to the Financial Ombudsman Service if necessary.