Direct Debit Guarantee Refund

chattychappy

It looks like reg 80 rather than 86 to me, but I agree with agrinnall, these are really minimum service standards. The regs are written in terms of "within" or "by", so there is nothing unlawful in faster processing times.

The DD guarantee says "immediate" which to me is not compatible with saying it would be refunded "the next day". We are used to making a faster payment and it appearing seconds later with another bank, we are used to paying in cash and its showing within seconds on our account, we are used to ATM transactions showing up immediately (or at least shown as pending within minutes) so no reason why a DD refund can't be processed just as quickly when it is a case of a bank refunding its own customer.

Of course if the banks want the DD guarantee to be "by the next working day", then they are free to change the wording.

Westie983

This could happen if you paid within three to four days of the DD date.
If this is the case then the DD will still be taken as its already been applied for and on route.

When you look at many credit card statements, its saying payment by DD, manual payments paid within three working days DD will not apply.
(something similar to this wording)

You should be able to get the credit card to refund the duplicate payment, its not a Direct Debit Indemnity though as the DD was already on its way to be paid if you made the payment close to the DD date.

Good luck with whatever route you take.

Westie983

Armorica

agrinnall wrote: »

Next working day is in line with the Payment Services Regulations 2017. See clause 86.

https://www.legislation.gov.uk/uksi/2017/752/contents/made

That clause isn't really relevant. It's about the processing of payments. Other clauses touch on refunds specifically.

If there had been an error, this would be an quicker refund case not an up to ten day refund as suggested elsewhere on the threat. [Reg 74 in new version]

The regulatory narrative states: A refund must be provided to the customer as soon as practicable and in any event by the end of the business day following the day on which the PSP becomes aware of the unauthorised transaction. [I think this used to say immediate. In any case the DD Guarantee says immediate, but end of the next day is when it would become a regulatory breach]

Before 13/1/18, see 8.106 to 8.113 of https://www.fca.org.uk/publication/archive/payment-services-approach.pdf

(This is all debatable in the OP's case because of the manual payment if made when the DD was already being processed)

(2009 clause numbers) Clause 64 refers back to clause 63. That covers a) if amount not notified; b) if amount unreasonably expected. (So essentially variable and non-erroneous DD, not a DD taken in error) [Reg 80 in new version]

The OP's case is further potentially complicated because it took the account into overdraft which can bring in other legislation (particularly the CCA).

Anthorn - your claim sounds valid - keep trying it. (Unless you've contractually waived wanting to know...) The amount must be notified in advance. If not, the up to ten day refund kicks in.

Westie - credit cards aren't relevant for DD transactions...