Making a Direct Debit Indemnity claim

colsten

hels2308 wrote: »

Why do you think the bank would take the loss? That's not how direct debit indemnity claims work. The bank effectively takes the direct debit back from PayPal - which PayPal have agreed to. PayPal would then recoup the money from the seller. The bank loses nothing. Not that it matters now, as the bank can't do this.

Paypal would do that if you had used a payment option that guarantees your payment. You chose to use a different, non-guaranteed, option. It's an expensive lesson to learn but it was all your decision.

hels2308

colsten wrote: »

Paypal would do that if you had used a payment option that guarantees your payment. You chose to use a different, non-guaranteed, option. It's an expensive lesson to learn but it was all your decision.

Had I chosen a different payment option, I would have been able to raise a dispute through PayPal and wouldn't need to go through the bank to reverse the direct debit. PayPal are the ones advising me to make the claim, I have it in writing from them - twice, in fact. I would never have considered it as an option otherwise. And I wasn't aware that using the friends and family option doesn't guarantee the payment. I would never have used it had I known, so it wasn't exactly an informed choice to forgo any payment protection. But yes, a very expensive lesson learnt.