Paying for course company gone into administration

Suemike2

Hi currently been paying £250 a month for an 18 month course and company have gone into administration. I pay from my Santander bank account via DD to the go cardless portal.  Go cardless have adviced it is down to bank to claim for chargeback as not received service Santander saying it’s not their responsibility as paid a third party provider.  Currently out of pocket £1300.

Also how can I protect myself when I re book course again against this happening as it’s a lot of money to loose.

born_again

Suemike2 said:

Hi currently been paying £250 a month for an 18 month course and company have gone into administration. I pay from my Santander bank account via DD to the go cardless portal.  Go cardless have adviced it is down to bank to claim for chargeback as not received service Santander saying it’s not their responsibility as paid a third party provider.  Currently out of pocket £1300.

Also how can I protect myself when I re book course again against this happening as it’s a lot of money to loose.

There is no chargeback on a DD, which also does not cover non receipt of service.
Best bet cancel DD, so you are no longer paying for something you are not getting. Unless someone else is going to take over supplying the course.
Neither Santander or GoCardless can refund any previous payments.

Or is this a continuous payment authority CPA linked to your debit card?

Why are you down £1300?
Has the course not yet started?

If it is a CPA, then all you can claim is for the part of the course you have not received. Not the whole amount of the course. 

So can you add a timeline of when you started paying, when course started & how long left to go.

DullGreyGuy

Depends what payment mechanisms the merchant accepts and if they offer instalments with all methods or not. 

DD guarantee in principle is only for a mistake in the DD itself, so if they were supposed to bill you £30 but they took £60 instead that falls within the scope of the guarantee. Whilst I've certainly heard of people using the DD Guarantee to deal with matters like insolvency etc I dont see how it strictly fits within the terms. 

https://www.financial-ombudsman.org.uk/decision/DRN-3613937.pdf

The above is a case from the ombudsman which explicitly clarifies that the DD Guarantee doesn't cover contractual disputes which is ultimately what this would fall under; that you arent getting the service you had paid for. 


Chargeback on the other hand does cover maters like this so payment by card would be better. Note however there are time limits on chargebacks so if the course is particularly long it may cause problems. S75, available on credit cards, doesn't have a short time limit so would be a better potion still however only if they directly accept card payments, if they use an intermediary as these ones did for DD then S75 doesn't apply.

born_again

DullGreyGuy said:

Depends what payment mechanisms the merchant accepts and if they offer instalments with all methods or not. 

DD guarantee in principle is only for a mistake in the DD itself, so if they were supposed to bill you £30 but they took £60 instead that falls within the scope of the guarantee. Whilst I've certainly heard of people using the DD Guarantee to deal with matters like insolvency etc I dont see how it strictly fits within the terms. 

https://www.financial-ombudsman.org.uk/decision/DRN-3613937.pdf

The above is a case from the ombudsman which explicitly clarifies that the DD Guarantee doesn't cover contractual disputes which is ultimately what this would fall under; that you arent getting the service you had paid for. 


Chargeback on the other hand does cover maters like this so payment by card would be better. Note however there are time limits on chargebacks so if the course is particularly long it may cause problems. S75, available on credit cards, doesn't have a short time limit so would be a better potion still however only if they directly accept card payments, if they use an intermediary as these ones did for DD then S75 doesn't apply.

To expand on the bold comment.
This would be classed as a ongoing service. So as long as the 1st payment was less than 540 days, then it would to covered.
But as GoCardless are wholly DD payments. Then as far as the OP goes. All they can do is not lose anymore money by making further payments.

Suemike2

Course will take between 12/18 months to complete. Started this in September with a training provider and was given options to pay the £1800 over 1 year 6 months or in full I chose 6 months. The payment comes out of my bank to go cardless.

born_again

Suemike2 said:

Course will take between 12/18 months to complete. Started this in September with a training provider and was given options to pay the £1800 over 1 year 6 months or in full I chose 6 months. The payment comes out of my bank to go cardless.

Sadly then there is no way to claim the past monies back. 
As DD provides no cover for this situation.

Only hope would be if someone takes the course over.