Debt cleared, but forgot to cancel direct debit

hunte78

Hi everyone, firstly I apologise as I wasn't sure which topic to post this under. As the title says i made a final payment to a debt recovery firm, all good and have received confirmation that the account is now clear. However I have just checked my bank and a realised I had forgotten to cancel direct debit as another payment has been made.

My question is, despite my own stupidity for not cancelling the direct debit, should I contact the company or do I contact my bank? I imagine it will take ages for someone to track the payment and return it to me. Can a direct debit be reversed?

Sorry if this isn't the right board for this question. Thanks in advance.

Willing2Learn

Hi hunte78,

There is the Direct Debit Guarantee, which says:

If an error is made in the payment of your Direct Debit, by the organisation 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

The DCA should have cancelled the Direct Debit at their end and it could be argued that they made an error by not doing so. I would ring your bank and ask for the Direct Debit to be refunded due to the DCA error.


https://www.directdebit.co.uk/DirectDebitExplained/pages/directdebitguarantee.aspx

PasturesNew

Theoretically, from an accounting point of view, the receiving company should be able to identify it from their records. The Accounts assistant should've tried to match the inbound money with an account, with the account being closed they should either have entered it as a credit there - instantly findable and returnable, or into the Nominal Ledger, with the account reference number as the item reference number - again, easily traceable in the Nominal Ledger using the date, amount, reference number....

So don't worry ... it shouldn't have "disappeared into a hole" at least.

hunte78

Thanks for the replies. I called my bank, who reminded me that it was a standing order, not a dd, so they can only direct me back to the receiving company.

Phoned both the debt recovery company who told me I have to contact HBOS who debt is with. HBOS said the recovery team is closed on weekend so will try again on Monday.

The money is somewhere, just need to find the right team to contact.

jonesMUFCforever

hunte78 wrote: »

Thanks for the replies. I called my bank, who reminded me that it was a standing order, not a dd, so they can only direct me back to the receiving company.

Phoned both the debt recovery company who told me I have to contact HBOS who debt is with. HBOS said the recovery team is closed on weekend so will try again on Monday.

The money is somewhere, just need to find the right team to contact.

You only need to contact whoever you paid via the standing order.
If you paid the DCA then it is they who you deal with and they should refund you.

sourcrates

jonesMUFCforever wrote: »

You only need to contact whoever you paid via the standing order.
If you paid the DCA then it is they who you deal with and they should refund you.

The most probable scenario is that HBOS have farmed out the debt to this DCA to mange on their behalf, its possible the payment is still made direct to the original creditor, whatever the problem, HBOS recoveries should be able to sort this on Monday for you.