DD Error

itsmattuk

Can anyone offer advice as I'm just being pushed around between bank account and credit card company.

I was cancelling my 123 Credit Card, so as advised by Santander I cleared the account. I checked my bank account 3 days later and they took a direct debit (over £250) as the minimum payment.

Halifax are saying they can't do the usual DD reclaim as I made a payment via debit card (on Santander's request to close the account) a couple of days before hand. Santander are saying as the account is closed the payment shouldn't have gone ahead anyway.

So right now neither bank is saying they can help but yet there is £250 odd floating around the system somewhere. Halifax say it should be in a holding account and Santander should be able to refund it. Santander are saying otherwise.

Halifax have advised if push-comes-to-shove they can attempt to reclaim the debit card payment, but I have to wait 15 days.

Any idea what I should do? As it seems neither bank is really helping and surely one of them can trace where the money has gone, isn't that the whole idea of Direct Debits?

Many Thanks!

Archi_Bald

You could call Halifax and tell them that Santander have taken the £250 without authorisation and that you want to claim it back immediately under the Direct Debit Guarantee. You do not need to give Halifax any details as to why Santander weren't authorised.

Santander might still return the original £250 as well, so things could get a bit messy.

chris_m

The Direct Debit Guarantee

• This Guarantee is offered by all banks and building societies that accept instructions to pay Direct Debits.
• If there are any changes to the amount, date or frequency of your Direct Debit (insert your organisation name)will notify you (insert number of) working days in advance of your account being debited or as otherwise agreed. If you request (insert your organisation name) to collect a payment, confirmation of the amount and date will be given to you at the time of the request.
• If an error is made in the payment of your Direct Debit, by (insert your organisation name) or your bank or building society, you are entitled to a full and immediate refund of the amount paid from your bank or building society.
  • If you receive a refund you are not entitled to, you must pay it back when (insert your organisation name) asks you to
• You can cancel a Direct Debit at any time by simply contacting your bank or building society. Written confirmation may be required. Please also notify us.

I suggest you bring Halifax's attention to point 3, in particular the words that I've highlighted in bold and those that I've emphasised by underlining.

That is the whole point of the DD Guarantee - that a customer can seek immediate redress when an error is made in/with a transaction over which they have no control.

itsmattuk

Thanks for the replies so far.
Halifax have said they can reclaim the direct debit, but also admitted it could get messy if Santander say they won't refund, or can't find the payment. They also questioned the fact that Santander might have taken the DD but haven't processed it so haven't realised that the account is closed yet and that it might end up getting sent back to where it came from?!

The DD left my account last Friday (8th), should it have been processed by now, with it being the 12th? I've honestly spent nearly an hour between the two companies yesterday all (basically) blaming each other.

So should I call up Santander again, saying that they took the money without authorisation (as the account was closed), which might throw them into action. Call back Halifax and request the same, despite them saying they can't really do it, or should I play the waiting game and see if the money comes back to me, or is that the silly option and I should be forcing the issue?

Archi_Bald

It is irrelevant what Santander say. You are dealing with Halifax, and Halifax are obliged under the DD guarantee to refund you immediately.

As I said, you do not need to tell Halifax why you want the money back - you just tell them that you had not authorised the DD and that you want the money back immediately.

Once Halifax have re-imbursed you (immediately, as per the DD guarantee), you can give Santander a courtesy call to let them know. But you don't have to do that.

itsmattuk

Thanks, I'll drop them a call after work, I'll see how I get along.

Hazzanet

itsmattuk wrote: »

Halifax are saying they can't do the usual DD reclaim as I made a payment via debit card

Was it by Direct Debit or by Debit Card?

If by Direct Debit you need to claim back under the Direct Debit Guarantee.

If by Debit Card, you need to do a chargeback.

itsmattuk

Ok, thanks for everyones advice. That worked, I should have the money back by midday tomorrow. If for whatever reason the direct debit does end up back in my account do I simply just tell Halifax to reclaim the money?

Archi_Bald

If you get a second lot, that would be money you owe to Santander. As and if this happens, you can call Santander and ask them how they wish to get the money back. You can also set the money aside and wait until they write to you to claim it back.