Direct debit problems

allenjhope

I have just changed banks and 2 of my direct debits were not set up, the bank is saying its not there fault and the insurance company are saying its not theres, I was left without insurance for 6 weeks and now have a claim against me, as a result my business may have to go bust! any ideas?

jonesMUFCforever

Are we talking about a business or personal account here?
You say that you changed banks - did you actually close down the first account or leave it open with perhaps a nil balance?

Were you given a list of standing orders and direct debits from the new bank for you to confirm that it was ok to set them up and if so was the two d/d you mentioned on this list?

Did you not notice that premiums were not being taken as they should?

If the insurance d/d did not go through the new account do you know if they tried the old one - did they write to you perhaps with a view to you settling up by alternative means?

What sort of claim has been made against you?
Sorry for all the questions.

allenjhope

Firstly thanks for your interest. Business account and I left it to the new bank to do the transfer, yes they sent the list and the 2 were on it they did not let me know there was a problem setting these 2 up, the insurance company wrote to a previous address of mine so I never got the letter, they did try to get money from old account, no didn't notice d/d had not gone through. its a motor claim but the other people involved a no win no fee collector for out of pocket expences so the costs could go through the roof.

Stephen_Leak

This is why I always recommend transferring DD's yourself, leaving a balance in the old account to cover them just in case and not closing the old account until all DD's have been taken from the new one.

I also try not to set up DD's over the 'phone. I ring up for a mandate form, so I can photocopy it before I send it back.

jonesMUFCforever

allenjhope wrote: »

Firstly thanks for your interest. Business account and I left it to the new bank to do the transfer, yes they sent the list and the 2 were on it they did not let me know there was a problem setting these 2 up, the insurance company wrote to a previous address of mine so I never got the letter, they did try to get money from old account, no didn't notice d/d had not gone through. its a motor claim but the other people involved a no win no fee collector for out of pocket expences so the costs could go through the roof.

Did you inform the insurance company of your new address?
If not then you could be stuffed.
If premiums are not paid it does invalidate the policy.

The only thing I can suggest is that you ask your new bank to write to the insurance company stating that they did ask for the d/d to be debited from the new account.

Ultimately though it is your responsibility to check these things.
Sorry if this is not what you needed to hear.