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.






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Comments

  • Neil_Jones
    Neil_Jones Posts: 9,515 Forumite
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    Get a copy of the statement for yourself and have a look through it.
  • eskbanker
    eskbanker Posts: 36,578 Forumite
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    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?
  • pmom
    pmom Posts: 5 Forumite
    First Post
    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?
    Thanks, no Power of Attorney yet - she's fiercely independent and wouldn't hear of it last year.

  • 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.
  • xylophone
    xylophone Posts: 45,543 Forumite
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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)?
  • sheramber
    sheramber Posts: 21,671 Forumite
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    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.

  • 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.
  • Make sure that you tell your friend that a POA allows you to assist her with her finances not take them over completely.

  • born_again
    born_again Posts: 19,471 Forumite
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    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.
    They can't.
    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 lane
  • sheramber
    sheramber Posts: 21,671 Forumite
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    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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