Wanted : Advice on Direct Debit Cancellation

Pint_Sized_Princess

Hi

I purchased a new washer a few weeks ago and at the time of sale, I agreed to take out accidental damage insurance for around £6.00 pm. When I recived the policy documents, I decided that the insurance wasn't what I wanted so I just deleted the direct debit with the bank (didn't inform the company of my cancellation though)

Earlier this week. I noticed that even though I deleted the DD instruction, the company had taken a payment anyway and the bank have confirmed that I did delete the DD, but the company then set up another direct debit about 2 weeks later.

The bank have advised that I should contact the company directly to try to obtain a refund. Am I within my rights to request a refund from the company?

Thanks for your help!!

gazebo

under the direct debit indemnity scheme, your bank should technically already have refunded this money to you, not passed you back to the other company.

I would speak to them and quote the DD indemnity to them if they are not familiar with it already (sounds like you might have spoken to someone who is either not aware or couldn't be bothered to complete the paperwork)

details of the wording found here http://forums.moneysavingexpert.com/showthread.html?t=463093

look at 2nd post

Mikeyorks

Pint_Sized_Princess wrote: »

The bank have advised that I should contact the company directly to try to obtain a refund. Am I within my rights to request a refund from the company?

Depends on the contract you have with them ... cancelling the DD doesn't cancel the contract - so you probably owe them. You probably had a 14 day cooling off period - but that's likely to have expired now.
They shouldn't have re-established the DD. But as you didn't contact them - they just assumed the original wasn't set up .. so did it again. Up to you to resolve it with the company. The DD Guarantee does not apply ... as no error was made.

gazebo

I apologise Pint Sized Princess, that thanks was not deserved.

I have provided you with incorrect information, the DDI will not cover you if an error has not been made.

Thank you Mikeyorks for correcting me.

mrsplinter

Pint sized princess I believe you are in entitled to a refund. Direct debit is a form of payment that can only be set up with your permission and which you can cancel at anytime. There is an error because the company reinstated the direct debit, without your permission, after you had cancelled.

Whether you have a contract with the insurance company and would still owe them is a separate matter. The reason banks encourage people to cancel direct debits with the originator is because companies may still feel they are owed money and demand it through the scheme, as has happened in your case.

This issue was addressed on Watchdog a few weeks ago, as banks continue to say that people should cancel direct debits with the originating company. I'm sure they had the banking industry and the financial ombudsman on to clarify that this is not true.

Paul_Herring

mrsplinter wrote: »

Pint sized princess I believe you are in entitled to a refund. Direct debit is a form of payment that can only be set up with your permission and which you can cancel at anytime. There is an error because the company reinstated the direct debit, without your permission, after you had cancelled.

As has been pointed out already, they did not cancel the contract.

Simply cancelling any DD associated with the contract does not constitute cancellation of the contract.