Direct Debit Guarantee

terry.h

I have a question about the direct debit guarantee which I hope someone can answer.

I cancelled my car insurance with Sainsbury's at the end of December, before my renewal on the 1st January.

I have just noticed that payment has been taken (on the 4th) for the amount shown on my renewal paperwork (which was not accepted). The policy has definitely been cancelled because it no longer shows on my online account.

I will of course try and get Sainsbury's to issue a refund but am I right to assume that under the Direct Debit Guarantee the bank must refund this money to me immediately as the direct debit should not have been taken?

grumbler

You are right, and you don't have to prove the bank anything.
Then Sainsbury's can chase you for the money if they believe that you owe them.

DCFC79

You might an answer as to why the money was taken if you phone up and ask.

stclair

I would imagine due to the new year the DD collection was already in progress before you actually cancelled it.

terry.h

Thanks grumbler, that's good to know.

DCFC79, I will be calling them up but I can't see them wanting to issue me with a quick refund so if I can do it through the bank then it's a faster solution.

I know it's been done in error because the amount matches the renewal first and I have a letter confirming it's been cancelled.

agrinnall

The problem you may find with invoking the DD Guarantee is that Sainsburys may already be processing a refund as they will know it was taken in error, so you could end up with double the amount, which means you'll then need to send the refund back to either the bank or Sainsburys. It might be better to contact Sainsburys first to see if the refund is on the way.