DD re-instatement ??

thefool

I've just received a letter from one of my creditors saying that they will be re-instating a direct debit which I had previously cancelled when I first got into financial difficulties. I'm with Payplan on a DMP and they have written to all my creditors explaining the position. In the meantime I've opened up a new bank account and had my wages paid there. I haven't closed the previous account due to the fact that I've got a small overdraft on it and want to clear that up first.

Can this creditor re-instate the DD without my agreement ???

OliveOyl_2

If you've actually cancelled the DD, then the simple answer is No.
They may present their out of date mandate, the bank may initially pay it, but one simple phone call would get that reversed.
There is huge protection for DD's precisely because it is entrusting a third party to access your bank account. The banks & other financial institutions like DD's and so want them to work and therefore need them to be trusted by you and me

Do your creditors know that you've cancelled it? are they saying they'd like to re-instate it?

rog2

This is a problem with direct debits, as opposed to standing orders where you have total control.
You can instruct your bank to cancel the direct debit.
Have you discussed this with payplan?

floss2

Whenever I have cancelled a DD with the bank, they've always told me to cancel with the organisation who would claim the monies too.....but I have been able to reinstate DD's too, when I've been back in the black.

I would check with your bank to be sure they have it cancelled....and that they won't reinstate it.

Good luck!

Irish_Paddy

Hey there, I work in a savings bank and deal with DD every day, under the DD Guarantee you have the right to cancel the DD at any time whatsoever. Plus if your bank or building society make an error with paying someone via DD you are entitled to a full and immeadate refund from your bank.

So basically if you have cancelled it the bank should not pay it, unless of course the company have a new up to date dd mandate from you.

So even though they are not meant to take money, and if they do your bank is wrong, I would keep an eye on your account to see if any new DD are set up and if so cancel them straight away.

Also with some banks if a DD is cancelled twice and a company come back to set it up a third time the bank will automatically reject it themselves.

Good luck

P

fuschia_2

I'd keep an eye on your online banking and if you see the direct debit has been set up just re cancel it.