Over £1000 taken by Nationwide via DD in error

ChopperST

I completed my remortgage from Nationwide to HSBC on 31 July.  Today (3rd August) Nationwide took £1100 from my current account.
I rang them to query the transaction and they confirmed it was took in error as my mortgage was closed with a zero balance.  They have advised that due to Covid their admin processes are taking longer and it will take fifteen days to refund the money which I find unfair as they have admitted it was taken in error but they refused to return the payment today via BACS or CHAPS.

I therefore contacted my current account provider (Lloyds) and asked them to claim the money back via the direct debit guarantee scheme.  They have told me that this situation does not qualify under the indemnity scheme which I again find bizarre as it would seem exactly the situation it is set up for. 

Can anyone advise any way I can get my money back quicker than fifteen days?  Thanks in anticipation.

Shakin_Steve

You need to contact Lloyd's and draw their attention to the direct debit guarantee. Tell them you will lodge a complaint if your money is not refunded immediately.

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

Personally I would have cancelled the dd immediately after the mortgage was settled.

ChopperST

Certainly this statement would seem to qualify;

• 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

I’ll call Lloyd’s back in the morning.  My mistake for not cancelling the DD.

dunstonh

I rang them to query the transaction and they confirmed it was took in error as my mortgage was closed with a zero balance.  They have advised that due to Covid their admin processes are taking longer and it will take fifteen days to refund the money which I find unfair as they have admitted it was taken in error but they refused to return the payment today via BACS or CHAPS.

That is not that much longer than the normal period.   They have to wait until the payment is cleared before they refund.  otherwise, they could refund only to find it was bounced.

I completed my remortgage from Nationwide to HSBC on 31 July.  Today (3rd August) Nationwide took £1100 from my current account.

That is quite normal.  It happens all the time when you remortgage so close ot the payment date.  Your mortgage adviser should have warned you of this.   Assuming you used one.   

Did you not think about contacting your bank today and asking them to bounce it?  Indeed, back in my banking days you used to be able to bounce the direct debit the next morning up to midday.    I don't know if banks do that any more.

ChopperST

dunstonh said:

I rang them to query the transaction and they confirmed it was took in error as my mortgage was closed with a zero balance.  They have advised that due to Covid their admin processes are taking longer and it will take fifteen days to refund the money which I find unfair as they have admitted it was taken in error but they refused to return the payment today via BACS or CHAPS.

That is not that much longer than the normal period.   They have to wait until the payment is cleared before they refund.  otherwise, they could refund only to find it was bounced.

I completed my remortgage from Nationwide to HSBC on 31 July.  Today (3rd August) Nationwide took £1100 from my current account.

That is quite normal.  It happens all the time when you remortgage so close ot the payment date.  Your mortgage adviser should have warned you of this.   Assuming you used one.   

Did you not think about contacting your bank today and asking them to bounce it?  Indeed, back in my banking days you used to be able to bounce the direct debit the next morning up to midday.    I don't know if banks do that any more.

Thanks for the reply.

Was a simple remortgage myself Dunstonh so no adviser.  We are away currently so cancelling the DD slipped my mind.  I simply checked that the mortgage had cleared with a £0 balance on Friday.  I spoke with Lloyds last night at my earliest opportunity and they advised they couldn't do anything.  I guess I'll put down to experience.  

Thrugelmir

Direct debits are setup a minimum of 10 days ahead of the payment date. Very common for their to be a cross over when remortgaging. Any excess monies are refunded normally very promptly.