Direct debit Warning!!

paulfjohnson

I closed my electricity account with Scottish power on 19th July 2007 and paid the balance due by Visa the same day.
By law, my direct debit set up to pay the electricity account prior to closure, should be terminated on the date the account was closed.
On 23rd July 2007 a further direct debit of £69 was taken from my bank account! four days after closure.
Scottish Power stated that they request all direct debits 4 days before the due date and they will reimburse me for the overpayment.
If this situation applies to all utility providers, many users will overpay their bill by one direct debit amount unless they monitor the bank debits carefully.
Take care when switching or closing your account

Electricshock. 30 July 2007.

tripled

All companies send the payment file to the bank in advance, they don't just send it on the day. For example, BG sends them around a week before, and I know Vodafone sends them a few days before as well.

I'm not sure which law it is that states they should have cancelled the direct debit the day an account is closed though, perhaps you could quote it for us?

However it is a fair point you have made regarding direct debits, most companies will refund any overpayment automatically (as I'm sure SP would have done eventually), but it is always worth checking

Stormy

paulfjohnson wrote: »

I closed my electricity account with Scottish power on 19th July 2007 and paid the balance due by Visa the same day.

If a company take DD payments which a) you have not agreed to or b) they have changed without giving you notice you can call your bank or BS and claim the money back instantly.

In your case, call you bank, dispute the payment, the bank will refund immediately and then cancel the direct debit yourself.

When BG took an unagreed sum from me I called Nationwide who refunded the money instantly.

Don't rely on the utility company to sort it, use your own initiative. Once you have cancelled the DD you can then write to Scottish Power as a courtesy but you are under no obligation to do so once you have cancelled the DD with the bank or BS they should not be able to take further funds.

Mike

rjm2k1

You should have cancelled the DD yourself just to make sure. You'll get it back, at least they admit they made a mistake. I too would be interested to know which law you are talking about.