Direct debit guarantee - Company in administration

bodoing2

Hi All, thanks in advance for the help.

I have been charged for over a year by economy energy for my utilities (Now in administration). I moved energy suppliers away from them to bulb energy in jan 2018 and instructed them to cancel my account and direct debit. Then I forgot about the issue and realised today that they were still collecting monthly direct debits from my account until 02/2019!

I have contacted the company who took over from economy energy (OVO) who has confirmed my account with economy energy terminated on 15/01/2018 and advised that I should call my back to get an indemnity payment under the direct debit guarantee.

I have called Santander who said they will contact their back office and helpfully refund me within a few days. When I enquired as to why the payment is not immediate, as in the guarantee (See quote below from the direct debit guarantee), they said because the payments has been taken over a year their back office need to calculate before refunding me. They laos stated it should not be a problem that the company is in administration, I should still get my money back.


"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"

Is the bank's statement correct? Would I still get my money back even if the company is no longer trading?

Thanks so much for the kind help!

[Deleted User]

How has it taken you 13 months to realise they were still charging you?

bodoing2

I thought it was for another property... i.e. I was stupid lol

But Any ideas on the question?

maxximus75

Let Santander work through their findings and tally up.


I had this with Halifax a few years back and it didnt take them long to sort it out and refund me.


The "immediate" refund I would think, would be if you noticed a payment had gone out that shold not have and you inform them, the immediately refund.


As they have said, after 13 months they have to look into it further.

bodoing2

Thanks Maxximus. When you say have had this with Halifax, does it mean they refunded you under the direct debit guarantee for a direct debit mistake caused by a company that has gone into administration?

Thank you so much for the kind help

Hazzanet

bodoing2 wrote: »

Is the bank's statement correct? Would I still get my money back even if the company is no longer trading?

You will get the money back. In the event that the company is no longer trading, the company's sponsoring bank will have to foot the bill if it is a genuine error.

SnowTiger

Hazzanet wrote: »

You will get the money back. In the event that the company is no longer trading, the company's sponsoring bank will have to foot the bill if it is a genuine error.

Yep. The guarantee is provided by the bank.

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

The Guarantee is offered by all banks and building societies that accept instructions to pay Direct Debits

[...]

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

bodoing2

Thanks so much guys for the help!