Direct Debit - Wrong Amount Requested

MonktonMat

A council has been requesting (and receiving) an amount by Direct Debit for two years, during which time no notifications of changes were received and the amount varied very little.

Only now the account has been closed, the council are asserting the DD amount was always wrong (too low) and we are now liable for the shortfall.

I know the DD Guarantee protects consumers from being overcharged, but does it also protect us from sizeable payments when the requestor has made this error?

MonktonMat

la531983

No, if the money is owed its owed, regardless of the payment method.

Alderbank

The Direct Debit is simply an instruction from you to your bank telling them to pay an amount of your choosing on a date of your choosing to the payee you nominate. If the bank has done that the DD isn't wrong. The bank does not know what you owe or what the payment is for.

Go back to your paperwork from two years ago. What does it say? If there is a statement such as 'This constitutes full and final payment of the amount owed', you might have a case, sometimes discounts are given for DD.

If it's a simple mistake then you owe it and must pay it, as @la531983 says above. However if the amount is sizeable it would be reasonable for you to expect time to pay it, such as so much a month for a year.

badmemory

Firstly I would want to know what the error was that caused the underpayment.  Giving 25% single occupancy discount when they shouldn't have or classing the property as band B when it has always been band D.  Surely they have explained the reason, if not then I would be demanding it.  Are they asking for the whole of the current year in one go because of the "underpayment".  They are entitled to, but I would challenge that if the underpayment was their fault.

user1977

Alderbank said:

The Direct Debit is simply an instruction from you to your bank telling them to pay an amount of your choosing on a date of your choosing to the payee you nominate.

An amount of the payee's choosing from time to time...

Undervalued

Whilst you might be able to use the direct debit rules to reclaim the recent payment, as others have suggested you would still owe the money. 

Simply reclaiming the DD, if indeed you can, may open up a whole load of trouble and possibly penalty charges and / or interest.

If you have grounds for any claim against the council (and I doubt if you do) you could still pursue this later, If you win you would get an appropriate refund.

Jumblebumble

Alderbank said:

The Direct Debit is simply an instruction from you to your bank telling them to pay an amount of your choosing on a date of your choosing to the payee you nominate. If the bank has done that the DD isn't wrong. The bank does not know what you owe or what the payment is for.

Go back to your paperwork from two years ago. What does it say? If there is a statement such as 'This 

I think you are referring to a standing order

Alderbank

Jumblebumble said:

Alderbank said:

The Direct Debit is simply an instruction from you to your bank telling them to pay an amount of your choosing on a date of your choosing to the payee you nominate. If the bank has done that the DD isn't wrong. The bank does not know what you owe or what the payment is for.

Go back to your paperwork from two years ago. What does it say? If there is a statement such as 'This 

I think you are referring to a standing order

I am. Thanks for putting me right. I'm getting old!

born_again

MonktonMat said:

A council has been requesting (and receiving) an amount by Direct Debit for two years, during which time no notifications of changes were received and the amount varied very little.

Only now the account has been closed, the council are asserting the DD amount was always wrong (too low) and we are now liable for the shortfall.

I know the DD Guarantee protects consumers from being overcharged, but does it also protect us from sizeable payments when the requestor has made this error?

MonktonMat

What is this for?

As council tax you get a statement each year of the charges.

No DD Guarantee does not protect you from owing them money.

Jumblebumble

Alderbank said:

Jumblebumble said:

Alderbank said:

The Direct Debit is simply an instruction from you to your bank telling them to pay an amount of your choosing on a date of your choosing to the payee you nominate. If the bank has done that the DD isn't wrong. The bank does not know what you owe or what the payment is for.

Go back to your paperwork from two years ago. What does it say? If there is a statement such as 'This 

I think you are referring to a standing order

I am. Thanks for putting me right. I'm getting old!

I know the feeling 

retiredbanker1

Might it be a standing order for say the bedroom tax? This is sometimes paid separately and a S/O is a common way of paying this.
You would get an annual statement from the council but the only way our council advises you of a problem is when you fall into arrears by not increasing the S/O annually.