Payment taken by bank for closed mortgage account

Jdpow

This is probably in the wrong forum but here goes!

Basically we had a mortgage with Lloyd's and remortgaged with Santander. Paid off the old mortgage on the 3rd December and they wrote to confirm that we had paid in full and they had closed the account. On the 6th December I received a letter from them saying that they had cancelled our direct debit (which would have been due to come out the 7th) and we didn't need to do anything further. Fast forward to the 9th they have taken our direct debit for the mortgage out of our account.

I contacted them to complain that they had taken nearly £600 out of our account for a closed mortgage after being passed between three different people they basically said it was my fault because I hadn't cancelled the direct debit. I read the letter out to the advisor and she then checked the account and said "oh the account was fully closed". By this point I had been on the phone for an hour and explained I had already told her this and just wanted a refund if the money that should had not been taken in the first place. She basically said yeah we will refund you but it will take 12-15 working days!! I asked what I was meant to do seen as I had another mortgage payment to make, as well as other bills that I now couldn't afford to pay because they have taken this money "by mistake" as she said it. She eventually said there was nothing she could do but I could make a complaint and see if it made a difference and whether they would refund it quicker. So I was given a reference number and told I would be contacted in 48 hours and receive a letter in 5 working days.

I'm still waiting for them to call me and am obviously getting more annoyed at the fact they have taken my money!! So I am wondering what are my rights and has anyone else had this kind of issue and how to proceed?! I am not happy nor in a position to be waiting until potentially January for a refund and like I said i have bills to pay. Luckily my son is young enough to not understand Christmas otherwise that would be ruined too!!

Any help and advice would be greatly appreciated!!

Thrugelmir

Direct debits are set up for collection a minimum of 10 days in advance. The only way for the payment to be stopped was for you to cancel the direct debit authority and cause the direct debit to bounce.

Speak to your bank, explain the situation and request a temporary overdraft facility to tide you over.

Jdpow

I have requested an overdraft with my new bank however I will be charged interest payments for everyday we are in it which I don't think is fair.

When I searched about the direct debit guarantee it says you only need to give written notice of a minimum of 1 day to cancel a direct debit. So I'm confused!! Where did you find about 10 days?! And does that still count if they have cancelled it for me and not me cancelling it?!

davidmcn

Have you just asking your (current account) bank for the money back under the direct debit guarantee? Whenever I've done that it's been credited instantly.

[Deleted User]

Your DD would have been well into the process of being called for.

You'll be refunded this month's and there won't be another one called for as it's now cancelled.

Thrugelmir

Jdpow wrote: »

Where did you find about 10 days?!

Originators of direct debits are required to have them ready well in advance. Nor can a single item be pulled from the run. Once created the batch is set.

ACG

1 day to cancel to DD.
But the DD is set up to take the money 7-10 days in advance.

The money will get sent back to you and the bank will no doubt cover your costs as it should have been explained to you when you were on the phone to them.

SonOf

Where did you find about 10 days?!

Standard direct debit requirements. And its at least 10 days. Some originators submit more than 10 days in advance.

I contacted them to complain that they had taken nearly £600 out of our account for a closed mortgage after being passed between three different people they basically said it was my fault because I hadn't cancelled the direct debit.

When the mortgage was closed, the lender would have issued a letter explaining what happens next and what you should do. If you had read that letter and followed the instructions, then this would not have happened.

She basically said yeah we will refund you but it will take 12-15 working days!!

No reason to indicate incredulity. They have to wait until the direct debit is cleared before they then return the funds. They usually wont know until around 7 days after you have paid it that it is cleared. They then have to process the refund and they still allow 3 days for BACs.