Direct Debit Indemnity for a closed bank account

OdeonRed

Hi all,

Does anyone know whether closing a bank account means the bank do not have to support a direct debit indemnity claim?

The direct debit in question has been paid every month for 13 months, but turns out it wasn’t my bill (water).

my new bank that I switched to have raised 8 of the payments with an indemnity claim no issue. However the old bank are stating they can’t raise a claim for a closed account.

should this be correct, given the old bank facilitated the creation of the direct debit to an account in someone else’s name, does the account closure mean that the direct debit guarantee no longer applies?

just wanting to sense check whether this is an issue to pursue with the bank, or the water company (who advised the direct debit indemnity would need to be raise)

Thanks!

born_again

TBH.
Water company should be refunding.
All they are doing by telling you to do a DD indemnity is avoiding doing the work themselves. As the bank claims the money back from them.

OdeonRed

Agree, they've stated their justification as they cannot do it as would involve discussing someone else’s account. (A bit late after already disclosing the name of the account holder to me previously).

molerat

The first port of call for a refund should be the organisation concerned, you should only need to get the bank involved if the organisation does not play ball.  The rules seem silent on closed accounts, they do not mention whether a claim is allowed or not.  You could contact the water co again in writing with a LBC stating you require a refund of £XXX.XX within 14 days or you will issue court proceedings.