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Direct debit reversal


Hi,
Could anyone offer me some advice with regards to a problem an elderly relative has got with her bank?
I wasn’t with her [I have no control or influence on her
account] and her memory of what happened is hazy [she’s 92]. I understand that
she went into her bank with a statement. She didn’t recognize some direct debits
on the account. The bank has reversed the direct debits of about 17 companies
and returned approximately £4,000 to her with the reference CR DDRFD
Now one of the companies is demanding their money back – plus charges. I’m thinking this is going to be the first of many.
How do you think she should proceed?
Many thanks.
Comments
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Get a copy of the statement for yourself and have a look through it.
1 -
DDs are just the symptom, she needs to get to the cause, in terms of which companies she signed up with, as reversing DDs doesn't absolve her of responsibility to pay them. Does anyone have power of attorney yet?1
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eskbanker said:DDs are just the symptom, she needs to get to the cause, in terms of which companies she signed up with, as reversing DDs doesn't absolve her of responsibility to pay them. Does anyone have power of attorney yet?
0 -
Lasting Power of Attorney does not take away control of anyone's financial affairs. The dear lady should decide who she can appoint to act on her behalf, either on her instructions, or if the terms of the Mental Health Act become applicable. My wife and I have LPA registered with the Office of the Public Guardian, but these have not been activated with any of our financial institutions, as the need has not arisen. Maybe in 25 years (when I reach the age of 92) I will be glad to have put such an arrangement in place.1
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PoA would be a good idea - it need not be activated unless she agrees.
Have you yet seen the statement (and preferably monthly statements for the previous year)?1 -
You /she needs to establish if they were genuine direct debits that she cancelled in error because , at the time, she did not recognise them. due to hr advanced age.
Or, were they things she had signed up to unwittingly.
the you/she needs to contact the companies concerned and explain the position.
1 -
Thank you everyone. I've no doubt that most of the direct debits are things she's been signed up to by cold callers but she has given out her bank details and had paperwork of them [we changed her phone number last year to stop that]. I'm going to get her bank statements to check her DDs. I'm thinking the safest plan of action would be to get the bank to pay all the companies back then cancel all the policies and direct debits properly. Then we'll try and get an LPA set up for her. Hopefully she cooperates with us - if not I fear she'll have the bailiffs after her.
0 -
Make sure that you tell your friend that a POA allows you to assist her with her finances not take them over completely.
1 -
pmom said:Thank you everyone. I've no doubt that most of the direct debits are things she's been signed up to by cold callers but she has given out her bank details and had paperwork of them [we changed her phone number last year to stop that]. I'm going to get her bank statements to check her DDs. I'm thinking the safest plan of action would be to get the bank to pay all the companies back then cancel all the policies and direct debits properly. Then we'll try and get an LPA set up for her. Hopefully she cooperates with us - if not I fear she'll have the bailiffs after her.
It's been taken back and that is it, as far as the bank goes. DD's are already cancelled.
Who is the Co demanding the money back?Life in the slow lane1 -
I would be inclined to contact the company and advise that this was as a result of a cold call to a vulnerable , elderly person and request they cancel whatever she signed up to.
Maybe a suggestion some bad publicity would not be to their advantage.
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