Direct Debit Cancellation

Hobsonkj

I'm the treasurer for a local Scout Group and when I took over I noticed there were payments for a child no longer attending the group.
I have written to the only address I can find for that family advising them to cancel the direct debit but payments have continued.
I have also contacted both our bank and their bank but been advised that they are unable to cancel the direct debit.

Anyone know how to deal with this? I'm worried that they will suddenly realise that they have been paying and demand a huge refund. Would the Scout Group be liable for this?
Would the bank write to them on our behalf - that way they are NOT giving any client details or discussing their account with us?

Can't believe how difficult this is. We are trying to STOP taking money, not take money out!?!

Also Can't believe these people have no idea they are still paying - don't they check their banking?

Shakin_Steve

If it's a direct debit, it can only have been set up by a company authorised to do so. Do you mean a standing order?

Shakin_Steve

Also, if you are afraid of a demand for repayment, don't use the cash. Put it in a holding account or, at least, keep it to one side.

pmjenkins

To avoid confusion you should be aware that the parents need to cancel their Standing Order which sends money to you.

(A Direct Debit, if it existed, pulls money from the parents' account and is entirely under your control.

TBagpuss

You could contact their bank and ask the bank to pass on a letter.
You can also enquire whether it is possible to reject the payment and return it to the bank (I know we can do this at work, but that may be because it is a business account.)

Otherwise, set the money aside so it is available if/when they notice. Does your bank account show the sort code and account number the payment is coming from, to allow you to repay the money manually?

As this is a scout group, it may be worth asking the current scouts and their parents if anyone knows this family. (Particularly any of your scouts who have older siblings who were members!)

agrinnall

Hobsonkj wrote: »

I'm the treasurer for a local Scout Group and when I took over I noticed there were payments for a child no longer attending the group.
I have written to the only address I can find for that family advising them to cancel the direct debit but payments have continued.
I have also contacted both our bank and their bank but been advised that they are unable to cancel the direct debit.

Anyone know how to deal with this? I'm worried that they will suddenly realise that they have been paying and demand a huge refund. Would the Scout Group be liable for this? Probably, but it shouldn't be an issue for you if you simply don't spend that money.
Would the bank write to them on our behalf - that way they are NOT giving any client details or discussing their account with us?

Can't believe how difficult this is. We are trying to STOP taking money, not take money out!?!

Also Can't believe these people have no idea they are still paying - don't they check their banking? You don't have to be on this board for more than a few days to realise that this is the way many (quite possibly most) people behave, which is why there are so many posts from people who have no idea what is going on with their money

As stated, it's a Standing Order not a DD, and that can only be cancelled by the originating account holder. I would very much doubt if there is any way to reject the payment from your end, so until it is cancelled you need to ring fence the money.

I'd be quite surprised if none of the scouts have, for instance, Facebook contact with the child (assuming they were old enough to have an account at the time they left), or if you have the first name of one or both parents and the name isn't too common perhaps you could try to track them down on social media. However, I think in the end sending a letter to their bank asking for it to be passed on is your best hope of getting the payment stopped.

Frudd

I think, as you know about it then ringfencing the money is the right thing to do. As for them demanding a refund...? As you know it is a mistake, morally giving it back is the right thing to do. But, I doubt that you have a legal responsibility to do so. It is, after all their mistake. Not that I am suggesting you keep the money, rather if they demand it back and doing so would put the club in financial difficulties.

Westie983

Hi,

I run a local brownie unit so I understand your issue.

First of all the payment will be paid into your scout account as a Standing Order and not a Direct Debit.

Standing Orders can only be cancelled by the account holder. If you have contacted by not had a reply from the family.

i would ring fence the money in the account. To be honest, if the family haven't checked their statements and see the payment going out then they cant miss the money.

You know the standing order should have been cancelled when the boy stopped attending, so if the family do get in contact then you will be able to refund them.

The bank will only write to them if and when they decide to switch bank accounts or close accounts as they will be given a list of their standing orders and Direct Debits..

As a treasurer I would just submit the accounts with the erroneous payment and explain what it relates too.

Do you not have any other contact details other then the address? maybe from previous records, They may have moved out of the area but telephone/mobile may still be the same.

Worth a try.

Good luck

Westie983