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Direct Debit Guarantee - at least one bank won't play
grisard
Posts: 2 Newbie
My energy supplier EDF charged me twice, ie two normal payments on the same day. That was on a Friday and I discovered it on Saturday. From experience I knew that EDF would not give me any hassle in correcting an obvious error, but they take a week to refund. So I thought I would try using the Direct Debit Guarantee. The relevant rule being "If a Direct Debit payment has been taken in error you will be entitled to a full and immediate refund from your bank."
I contacted Nationwide Building Society and got past their AI chatbox to talk to a human being. I was told that "This is not covered by the Direct Debit Indemnity process". There was a bit of to and for while I repeated the DD Guarantee and that this was clearly an error by EDF. Still no, so I asked for what sort of DD errors are included. No response, so I asked for the criteria once more, asked for a link to a website. Was told they didn't have one. Instead I was sent the following:
"...the claim reasons would be as follows:
- unauthorised payment value
- incorrect payment date
- unknown merchant
- cancelled contract with merchant
The person went on to say "you've had 2 payments taken by EDF, but you only have one direct debit set up with us and the (first) payment was taken correctly, so you would need to speak to EDF about the second payment."
I replied that if "the first payment was taken correctly and the second was not then it (the 2nd) was taken in error......"
At this they offered "to submit the claim for me, however please note it is not a guaranteed refund!" (The exclamation mark is mine).
I contacted Nationwide because I thought it was such a clear-cut case that it would be quicker to get a refund than dealing with EDF. Obviously, I was incorrect.
The whole Direct Debit Mandate/Guarantee scheme allows organisation's to dip into our bank accounts with irregular amounts as they see fit. My concerns about that were eased by the DD guarantee that the bank would immediately and in full reverse any error. The bank would only then seek redress from the organisation at fault. It seems that Nationwide are NOT playing by the rules.
To complete this. I contacted EDF and was met with a very polite and understanding person who promised to get the refund authorised "today" and email me when it was agreed. I received that email later the same day
and the refund six days later. 
I contacted Nationwide Building Society and got past their AI chatbox to talk to a human being. I was told that "This is not covered by the Direct Debit Indemnity process". There was a bit of to and for while I repeated the DD Guarantee and that this was clearly an error by EDF. Still no, so I asked for what sort of DD errors are included. No response, so I asked for the criteria once more, asked for a link to a website. Was told they didn't have one. Instead I was sent the following:
"...the claim reasons would be as follows:
- unauthorised payment value
- incorrect payment date
- unknown merchant
- cancelled contract with merchant
The person went on to say "you've had 2 payments taken by EDF, but you only have one direct debit set up with us and the (first) payment was taken correctly, so you would need to speak to EDF about the second payment."
I replied that if "the first payment was taken correctly and the second was not then it (the 2nd) was taken in error......"
At this they offered "to submit the claim for me, however please note it is not a guaranteed refund!" (The exclamation mark is mine).
I contacted Nationwide because I thought it was such a clear-cut case that it would be quicker to get a refund than dealing with EDF. Obviously, I was incorrect.
The whole Direct Debit Mandate/Guarantee scheme allows organisation's to dip into our bank accounts with irregular amounts as they see fit. My concerns about that were eased by the DD guarantee that the bank would immediately and in full reverse any error. The bank would only then seek redress from the organisation at fault. It seems that Nationwide are NOT playing by the rules.
To complete this. I contacted EDF and was met with a very polite and understanding person who promised to get the refund authorised "today" and email me when it was agreed. I received that email later the same day
and the refund six days later. 0
Comments
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You should be given an immediate refund.
https://www.directdebit.co.uk/direct-debit-guarantee/
I'd make a written complaint to Nationwide.3 -
It's usually easier in my experience to sort it out with the company directly, as even if the money is recalled by your bank it won't resolve things if there is a billing error on EDF's end and they believe you owe them the money they took, and then try and charge you again.
I agree that a complaint to Nationwide is in order though. Nationwide might have a rough idea of how frequently your payments to EDF should be, but they won't have any idea of the correspondence between you and EDF (or lack thereof) regarding which payments are/are not authorised. They should have refunded the 2nd payment under the guarantee as soon as you informed them it was unauthorised.1 -
I had this same situation occur a couple of years back, and I'm pretty certain it was Nationwide too. Chap basically told me I must be getting confused with Section 57 (or whatever it is!) refund in credit cards, and they could launch an investigation or appeal but it would take 28 days. I hung up, phoned straight back and got the correct answer. They apologised for their colleagues error. I requested they check the call log and get him extra training. I think they were mortified he'd told me such wrong info. Money refunded immediately.2
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Time to ring and ask to make a complaint, first thing that will happen is you get a refund on the DD.
If a good will gesture is not offered there and then complete the complaint.
Refund and £20 as a minimum.
0 -
Had this once with starling. I generally really like starling but they made me wait 4 days before refunding a wrong direct debit despite me quoting the guarantee which states ‘immediate refund’.0
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Thanks to all, that replied. It is as I suspected but I just wanted to get it out there. I am going to take a copy of this thread with me and call into my local Nationwide branch.1
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You would get a refund so much quicker to just ring up or use an online tool
Sam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
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The point is it shouldn't have been any quicker to ring EDF than Nationwide.Nasqueron said:You would get a refund so much quicker to just ring up or use an online tool
Let's Be Careful Out There1 -
I agree but OP wants to sort the issue by physically walking into a branch when it would be so much quicker to just message them and start a formal complaintHillStreetBlues said:
The point is it shouldn't have been any quicker to ring EDF than Nationwide.Nasqueron said:You would get a refund so much quicker to just ring up or use an online toolSam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
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