Halifax - Still charging me for a mortgage that has been paid off!

qwerty987

I remortgaged and I redeemed my mortgage with Halifax and moved to another bank on the 25th Nov 2022. I Called both companies on the day made sure everything was ok and it was. Then on the 1st Dec 2022 Halifax took the direct debit even though it had been redeemed/paid off! In fact now that it has moved to the standard variable rate they took a payment that was 2.5 times larger than usual. When I called them up they told me this was standard as it had been redeemed within 5 work days of the direct debit and they can’t change it. Bank staff was totally unphased and said this is "not an error" and is "standard practise" and it will take me about 5 working days to get it back.   

He made it sound like I was the one being unreasonable asking for my money back. I raised a complaint but he just discussed it with a college and said we can close it here as its “standard practise” and there is “no banking error”. He said I can raise it to a higher level but they would say the same thing and would take 8 weeks to hear back from them. To date I still haven’t had my payment returned.

Should I complain to the financial ombudsman?

• This seems like a systemic issue and the banks are helping them self’s to minimum of 5 days of interest. The attitude of the staff makes me believe this is a common issue. It is compounded by the fact the interests rates have shot up considerable amount and every one would be remortgaging close to the renewal date.
• Even though I called the bank on the day it was paid off to check everything was fine, I wasn’t told this would be an issue and that I should cancel the direct debit or make sure there were sufficient funds in the account. During the cost of living crisis this is really awful when all the bills are going up.
• I’m not entirely sure I believe Halifax saying a direct debit can’t be modified 5 days before the payment as credit card that have direct debits seem adjust for refunds within days of the payment. And even if they mistakenly take a payment they should refund you faster
• Further I’m actually still waiting on the final redemption statement as it’s different from the numbers I have from my online statement and there should be no fees. Their numbers were out by 1.5K but I felt I had to go with it as otherwise it would be paying the higher rate for longer. I was told I can challenge it after the event when I see the final redemption statement but they couldn't tell me over the phone why there was a difference. This apparently takes 10 working days from the 25th to have the statement posted to you.

Any advice would be really appreciated 

Thanks 

 

 

MorningcoffeeIV

It's standard. The DD had already been called for. They're not 'helping themselves to extra interest.' 

But the funds will be returned. It's nothing that FOS will be interested in. 

[Deleted User]

Regardless of the ins and outs 4 working days is far too short to expect this to be actioned, also the employee advising you didn't have sufficient information either as they'd have informed you differently too.
Let the process run, first, and then follow it up in a couple of weeks time.

People who have done this very thing will assure you that it all works out - you just need to allow longer than you have.
It will be fine.

400ixl

What they have told you about the direct debit is correct and how all banks work. You don't really have a complaint there, but you could raise an official complaint and you may get a voluntary compensation from them, but it won't get your money back any quicker.

RelievedSheff

This is standard practice and is outlined on any direct debit paperwork that you sign up for.

user1977

You can avoid this by completing your remortgage mid-month, unfortunately it's a consequence of the money-saving tactic of taking it to the last date of your current deal, which also tends to be when people's monthly payments are made.

Windofchange

Echo all of the above. Happened to us earlier in the year with Halifax and money was returned about three weeks later. Nothing to see. Move along. 

kingstreet

Did you cancel the direct debit instruction to prevent any further payments being made?

dunstonh

A long post for something that is actually quite normal and regular.  Also, IIRC, they notify people this can happen in their redemption instructions.

He made it sound like I was the one being unreasonable asking for my money back

You will get it back.  It is just one of those things that happens.  No action is needed.

 To date I still haven’t had my payment returned.

You wouldn't yet.  It needs to become cleared before they return it.

Should I complain to the financial ombudsman?

No. It would be a complete waste of everyone's time for something is normal.

qwerty987

Seems its a common problem, there is some one else posting exactly the same issue today here, I think banks should do more to inform people about this.

People say we should just accept it but it doesn't seem correct/fair. Like many of the other banking scandals that they only change once enough people complained (ppi, packaged bank account, mortgage exit fees etc...) 

Some people are getting their money back after 15 days just seems way to long in this day and age. I'm sure if i underpaid my mortgage by the same amount and told them its would work it self out in about 15 days they wouldn't be so happy

RelievedSheff

qwerty987 said:

Seems its a common problem, there is some one else posting exactly the same issue today here, I think banks should do more to inform people about this.

People say we should just accept it but it doesn't seem correct/fair. Like many of the other banking scandals that they only change once enough people complained (ppi, packaged bank account, mortgage exit fees etc...) 

Some people are getting their money back after 15 days just seems way to long in this day and age. I'm sure if i underpaid my mortgage by the same amount and told them its would work it self out in about 15 days they wouldn't be so happy

They do, with the direct debit paperwork that they sent you.

Not the banks fault if you have not read it I'm afraid.

The money has to clear at their end and make it's way to your account before they can start the process of refunding you. That is not an instant process.

You really have nothing to complain about here I'm afraid.