Direct Debit - unauthorised payment taken

Legacy_user

Say you set up a direct debit but a company decides to take more money than agreed or where not agreed at all, does this constitute theft ?

Blackbeard_of_Perranporth

Here you go

https://www.directdebit.co.uk/DirectDebitExplained/Pages/DirectDebitGuarantee.aspx

Mind you, don't use it to settle a dispute with the company!

AJXX

No it probably constitutes a mistake rather than theft.

In the event that an error is made in the payment of your Direct Debit*, either by the organisation or your bank or building society, you are entitled to a full and immediate refund from your bank of the amount paid. Simply contact your bank or building society. They are responsible for refunding the money - even if the original error was made by the organisation collecting the payment. But remember, if you receive a refund you are not entitled to, you must pay it back when the organisation asks you to.

https://www.directdebit.co.uk/DirectDebitExplained/Pages/Howtoclaim.aspx

System

Well thank you. However, it's a little more complicated because the company I'm refering to is the council and the payment I'm refering to is council tax. I've set up a direct debit to pay off in installments but recieved correspondance today saying that they were not happy with what I've offered. I don't want to find they have debitted the entire amount owed that I have not agreed to pay. Any information is appreciated with these specifics in mind.

wealdroam

Gold_Anaconda wrote: »

Well thank you. However, it's a little more complicated because the company I'm refering to is the council and the payment I'm refering to is council tax. I've set up a direct debit to pay off in installments but recieved correspondance today saying that they were not happy with what I've offered. I don't want to find they have debitted the entire amount owed that I have not agreed to pay. Any information is appreciated with these specifics in mind.

It strikes me that you would be better of setting up a Standing Order.
With a Standing Order you specify the amount send to the council on a particular day each month.

Of course I offer no opinion on whether your council will accept a Standing Order, nor do I condone any attempt of you not paying your council tax due.

Debts for Council Tax have specific rules.

Ectophile

Ultimately, with a direct debit, they tell you how much money they are going to take. You don't get to tell them. That's the opposite of a standing order.

If you don't like that, don't pay by direct debit. I used to pay at the Post Office. But it was less convenient, and every one in a while I would forget, and get a snotty letter from the council.

System

wealdroam wrote: »

It strikes me that you would be better of setting up a Standing Order.
With a Standing Order you specify the amount send to the council on a particular day each month.

Of course I offer no opinion on whether your council will accept a Standing Order, nor do I condone any attempt of you not paying your council tax due.

Debts for Council Tax have specific rules.

I've not used standing orders before? Is this something I could set up through my bank with the council's account number and sort code? The direct debit I set up appears to me to be something they can take money out when they wish, which is obiously not something I'm going to permit. What I need to know is what section of what Act (where does it say they can refuse my payment) Rules are not laws, we must remember this. You can't answer this obviously, obviously the question is open to anyone that can. Thank you for mentioning the standing order so that I can consider this as an option.

System

Ectophile wrote: »

Ultimately, with a direct debit, they tell you how much money they are going to take. You don't get to tell them. That's the opposite of a standing order.

If you don't like that, don't pay by direct debit. I used to pay at the Post Office. But it was less convenient, and every one in a while I would forget, and get a snotty letter from the council.

I had this today, an unsigned e-mail from the council, someone claiming to be a revenue officer, I e-mailed back asking who they were?... seems they seem to do and act as they please. Do you think the standing order would work for me? I'm looking to pay about £20 a month on a few hundred of back dated debt they say I owe. I think this is reasonable, they don't. I'm not giving them anymore that what I've said I'll pay already. What I need to know is if they do refuse on what grounds can they do this ? What Law etc.

powerful_Rogue

Gold_Anaconda wrote: »

I've not used standing orders before? Is this something I could set up through my bank with the council's account number and sort code? The direct debit I set up appears to me to be something they can take money out when they wish, which is obiously not something I'm going to permit. What I need to know is what section of what Act (where does it say they can refuse my payment) Rules are not laws, we must remember this. You can't answer this obviously, obviously the question is open to anyone that can. Thank you for mentioning the standing order so that I can consider this as an option.

Local Government Finance Act (LGFA) 1992

CIS

To add to the post above, its the Council tax (administration & enforcement) regs 1992 (as amended) which lay out the actual recovery route, the LGFA 1992 lays out the basic framework for council tax.

Once you have lost the right to pay by instalments (which is before the summons is issued) then the full monies become due. As you will see in the A&E regs (from reg 33 onwards) there is actually no recovery option specified for payment by instalments, any payment arrangement given by the council is discretionary and not covered within the specific legislation.

FOREVER21

Gold_Anaconda wrote: »

I had this today, an unsigned e-mail from the council, someone claiming to be a revenue officer, I e-mailed back asking who they were?... seems they seem to do and act as they please. Do you think the standing order would work for me? I'm looking to pay about £20 a month on a few hundred of back dated debt they say I owe. I think this is reasonable, they don't. I'm not giving them anymore that what I've said I'll pay already. What I need to know is if they do refuse on what grounds can they do this ? What Law etc.

Telephone your local citizens advice bureau and ask to make an appointment with a debt adviser, take your income /outgoing details with you and if the CAB agree that £20 is really all you can afford they will write to the council on your behalf.

In my experience the council usually accepts the suggestions of the CAB, as they know a financial assessment will have been done.

Of course if you can really pay more then, you will need to up your offer before the council decide to take court action.