Credit Card Charges - Who is at fault

WelshConsumer

I had a letter off my credit card company (Nationwide) last month saying that if I did not use my card soon they would close the account as I had not used it for over a year. I duly used it and received my statement. The statement said that the full balance would be claimed by direct debit.

This morning I get a phone call off the Nationwide explaining that my direct debit had been bounced by my bank - First Direct. I gave my account details yet again and they said that this was the correct account details. Nationwide asked me to pay by Debit Card which I did. Nationwide said that sometimes banks delete unused direct debits after a certain period of time. Nationwide also said they were charging me £27 for the privellege of this. £12 for the direct debit being bounced, £12 for the missed payment and £3 interest.

I asked my bank why they had bounced the direct debit to be informed that it would have been deleted after 13 months of non use and that Nationwide should have known this as they would have a copy of the "Originators Guide and Rules for Direct Debit Schemes". (Section 7.6.2 apparently says that organisations can delete direct debit instructions after 13 months.

My point to First Direct was that they had not informed me that the Direct Debit Instruction had been deleted when they had unillaterally decided to apply 7.6.2 of the above scheme. I explained that as a result of their action I had incurred a charge of £27. They said this was a matter for the credit card company who should have ensured the direct debit mandate was valid.

My questions are:
1) Who should I complain to to get back my £27?
2) It doesnt seem possible not to incur at least £24 of these charges?
3) If Nationwide knew that the DD would be invalid why did they continue to process it?
4) Can anyone point me to a copy of the ""Originators Guide and Rules for Direct Debit Schemes".

Many thanks

jonesMUFCforever

Many banks will delete 'dormant' direct debits if not used for more than 13 months.
Ask Nationwide politely to refund the charges explaining what has happened.

littlejimmy

So Nationwide arbitrarily decided to cancel your DD without informing you OR the credit card company?! They had BETTER refund your fees, cheeky gits! Let us know how you get on? Going to check all of mine now!

iceicebaby

if a direct debit is cancelled (by the bank) then an originator then applies on that direct debit for funds, as the direct debit is cacelled the bank are not alowed to charge as the direct debit in effect does not exist. They should just return the dd unpaid to the originator on a code 1 - mandate cancelled. It is only if the ddis live and there are not enough funds available that they are allowed to charge

jonesMUFCforever

littlejimmy wrote: »

So Nationwide arbitrarily decided to cancel your DD without informing you OR the credit card company?! They had BETTER refund your fees, cheeky gits! Let us know how you get on? Going to check all of mine now!

Nationwide did not cancel the D/D - his bank First Direct did as it had not been used for 13 months.
This is normal practise.

MarkyMarkD

iceicebaby wrote: »

if a direct debit is cancelled (by the bank) then an originator then applies on that direct debit for funds, as the direct debit is cacelled the bank are not alowed to charge as the direct debit in effect does not exist. They should just return the dd unpaid to the originator on a code 1 - mandate cancelled. It is only if the ddis live and there are not enough funds available that they are allowed to charge

Credit card companies, or any other company collecting funds by DD, can charge a fee whatever the reason for the payment being declined. It's irrelevant if the DD has been cancelled or whether it's merely a case of insufficient funds.

iceicebaby

MarkyMarkD wrote: »

Credit card companies, or any other company collecting funds by DD, can charge a fee whatever the reason for the payment being declined. It's irrelevant if the DD has been cancelled or whether it's merely a case of insufficient funds.

OOps yes sorry my mistake I thought the OP was reffering to bank chages for the failed DD!!