Direct Debit Guarantee Scheme Question (Halifax)

Mikeyorks

Very pertinent. And it does clarify exactly how the Guarantee should operate. Unfortunately, in the interim, Banks have furthered the abuse (and internal ignorance) that existed when that was written - close to 5 years ago.

dunstonh

Mikeyorks wrote: »

Very pertinent. And it does clarify exactly how the Guarantee should operate. Unfortunately, in the interim, Banks have furthered the abuse (and internal ignorance) that existed when that was written - close to 5 years ago.

The indemnity scheme goes back decades. The re-write and update would be about 5 years ago but in reality there is little difference apart from a bit more direct wording in a few places (obviously not enough though!)

Mikeyorks

dunstonh wrote: »

would be about 5 years ago

Sorry - my 'close to 5 year' reference related to the FOS article which was written April 2003. But it wasn't as clear as it should have been.

dunstonh

But it wasn't as clear as it should have been.

Mikeyorks, own up. It was you that wrote the guarantee

Mikeyorks

No ..... I'd have made it cash over the counter!;)

TBH I've never ever claimed. And that despite BT raising my blood pressure last month by debiting my account 3 days after their final account - as I moved providers. And then rubbing salt in, by repaying by cheque!

But I am an indemnity signatory for a large organisation that runs a low volume but high value DD system. And once had to phone Halifax re a customer from whom we'd inadvertently debited several £thousand ... all his working capital. I'd 'phoned him and sent him into the Branch to claim under the guarantee as being the fastest route back to solvency - and they just rejected it. So I rang - pointed out we'd made the error - they should refund - and I personally guaranteed the indemnity would be with them from BofE the following day. I'd initiate it .. even before they claimed it. Nothing doing. Not awkward - not malicious - just plain ignorant of the system .... and that was the deputy manager.

Fortunately I was able to CHAPS the money into the account later in the day. But, ever since then, I can get a bit warm under the collar when people quote the 'full and immediate refund' ..... then start arguing why it doesn't mean that !

End of

JohalaReewi

I checked with BACS (the Direct Debit Guarantee people) as to what time frame they meant by 'immediate' and they said within 24 hours.

Unfortunately, the direct debit guarantee scheme is open to abuse both by customers claiming false refunds, and banks claiming it doesn't apply to them.

In the old days, BACS used to police the scheme and would 'have a word' with banks who didn't honour the guarantee. Last time I contacted BACS about an errant bank, they said it was nothing to do with them. So effectively, the scheme would now seem to rely on the goodwill of the banks...

Bar-Code

Hi All,
my GF has an account with Halifax...and it had 400 pounds in cash.
Last month she saw three sepearate direct debit payments from paypal totalling 250.. but she never registered with any paypal or any other company ..and it truly a case of some one misusing her bank account details to buy stuff from paypal by setting up a fraud direct debit some how .

though Initially shocked but after reading this forum I went to her bank and mentioned about the direct debit gurarentee ...but the advisor at the bank says that its mandatory for me to speak to the paypal first and resolve the issue from paypal itself...incase paypal find some problem then I should get the FULL NAME of the person I spoke to at paypal.. in order for the bank to go ahead with the indeminity claim ...

the main issue is she dont have a paypal account ....nor the paypal customer service people dont reveal their FULL NAME as the bank demands me... so in the end bank and paypal are passing on bucks..each other ..and I have spent more than a week + 25 pounds on travelling to bank and telephone bills speaking with automated systems..and still no where to go.. please suggest


many thanks

p00hsticks

Unless you have a Power of Attorney to deal with your girlfriends affairs, it's going to be easier for her to do this herself, as you are going to hit a wall of Data Protection sooner or later - I'm surprised you've got as far as you have. Forget about going to Paypal or citing the Direct Debit guarantee, she needs to go to her bank and report the transactions to their fraud section as fraudulent use of her card, and get the card stopped and a replacement issued.

System

Under the terms of the Direct Debit Guarantee, your girlfriend is entitled to an immediate, no questions asked, refund of any direct debit she says is mistaken. See this, from the financial services ombudsman:
http://www.financial-ombudsman.org.uk/publications/ombudsman-news/27/27-directdebit-guarantee.htm
Bank staff often do not know, or pretend not to know, that.

After this refund has been made, it is up to the bank to pursue Paypal for an explanation, and to investigate possible fraud. And if Paypal believes your girlfriend did use Paypal, it is up to Paypal to pursue your girlfriend for payment by other means, and up to her bank to give her grief for abusing the Direct Debit Guarantee.

zzzLazyDaisy

I guess I must have just been lucky! I have had to rely on the DD guarantee scheme twice - on both occasions because a utility company took money on direct debit after the account had been closed (and yes, I am much more on the ball re cancelling DD's these days!). On both occasions the matter was dealt with over the phone and refunded by the bank within a very short time frame - certainly within a matter of days. I'm with LTSB.