Refund on Direct Debit

bobblebob

Hi

Long story short, i was paying a company for services via DD and closed my account with notice. I then cancelled the DD, however the company have said i am due a refund of £15 due to paying too much before i closed my account. They want to transfer me the money they owe me via DD. They hold my acc number and sort code as confirmed over the phone, but seeing as i cancelled the DD they arent sure if the refund will process correctly

Obviously the DD stops them taking money, but does it stop them paying me money back?

Hazzanet

bobblebob wrote: »

Obviously the DD stops them taking money, but does it stop them paying me money back?

No it doesn't; BACS credits don't need an active DD in place at all. That said, some custom built software is poorly written and won't permit a refund if the DD isn't place event though it is not a BACS requirement at all.

agrinnall

A payment into a closed account will fail, and will either be bounced back to the originator or end up in a suspense account. The company will need to find another way to refund you whatever happens, so they may as well do it now rather than run the risk of the money disappearing for a few days/weeks/months while the bank tries to find it.

Ah, looks like I may have misinterpreted "closed my account" as "closed my bank account" when it should probably be "closed my account with the company". If so, then Hazzanet's reply is probably correct.

bobblebob

agrinnall wrote: »

A payment into a closed account will fail, and will either be bounced back to the originator or end up in a suspense account. The company will need to find another way to refund you whatever happens, so they may as well do it now rather than run the risk of the money disappearing for a few days/weeks/months while the bank tries to find it.

Ah, looks like I may have misinterpreted "closed my account" as "closed my bank account" when it should probably be "closed my account with the company". If so, then Hazzanet's reply is probably correct.

When i say closed account, i meant with the company. The bank account used for the DD is still active

Edit: I missed your edit, but thanks

pmduk

There'd be nothing stopping you authorising them to restart the DD then cancelling it after the payment has been made. Although having said that they could just transfer the funds via BACS or the faster payment system.