Direct debit guarantee

ftointonn

I bank with Natwest and had a dd due to go out which i cancelled at my local branch ( the amount going out was changing anyway and I wanted to pay by transfer myself every month so I could vary the date to suit 'payday') anyway the dd went out ! I rang the bank they said they would reimburse me and investigate, they came back said it was there mistake and put the money back in.
They then contact me to say that as the company who took out the dd had received the money from my account and they would only give Natwest back the 'difference' of what the dd was changing too that I had to pay back the remaining difference to Natwest !
Surely this isn't correct ??? The dd guarantee says if it goes out of your account and it's there fault they should repay, not be dependant on whether the recipient repays them ???
Any advice please ?

dunstonh

This may be a solution being offered but if you refuse it, they should refund the lot. It wont be free money though. The company that currently has the money will pay the bank and you will still owe them.

ftointonn

I have repaid most of it now
Thanks

Aquamania

ftointonn wrote: »

I bank with Natwest and had a dd due to go out which i cancelled at my local branch ( the amount going out was changing anyway and I wanted to pay by transfer myself every month so I could vary the date to suit 'payday') anyway the dd went out ! I rang the bank they said they would reimburse me and investigate, they came back said it was there mistake and put the money back in.
They then contact me to say that as the company who took out the dd had received the money from my account and they would only give Natwest back the 'difference' of what the dd was changing too that I had to pay back the remaining difference to Natwest !
Surely this isn't correct ??? The dd guarantee says if it goes out of your account and it's there fault they should repay, not be dependant on whether the recipient repays them ???
Any advice please ?

No that isn't correct

The terms of the DD guarantee are:

Direct Debit Guarantee

• The Guarantee is offered by all banks and building societies that accept instructions to pay Direct Debits
• If there are any changes to the amount, date or frequency of your Direct Debit the organisation will notify you (normally 10 working days) in advance of your account being debited or as otherwise agreed. If you request the organisation to collect a payment, confirmation of the amount and date will be given to you at the time of the request
• 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
  • If you receive a refund you are not entitled to, you must pay it back when the organisation asks you to
• You can cancel a Direct Debit at any time by simply contacting your bank or building society. Written confirmation may be required. Please also notify the organisation.

In this case, you cancelled the DDI direct with your bank, and this does not appear to be in any dispute.

So the bank paying out your money when they didn't hold a valid DDI is entirely their fault.

It's not the fault of the organsiation that attempted to collect the DD, and the bank should not have made an indemnity request under the terms of the DD scheme in this case.

Any subsequent discussion between the bank and the organisation that received the money should not involve you.

ftointonn

Thanks , what should I do now ?

Aquamania

ftointonn wrote: »

Thanks , what should I do now ?

About what?

What do you want to do now?

I would suggest you contact the organisation involved and agree how you will be paying them both now and in the future

dunstonh

If you do not accept the bank solution then you reject it and stick to a full refund. The bank will then get the money back from the company and the company will tell you that you owe them (if you have not already paid it via other means).

If you never paid the amount owed to the company then you will likely suffer late payment charges and interest if you proceed with the indemnity scheme claim.