Direct Debit Guarantee

amandathepanda

If a customer insisted and said that they understood the terms of the guarantee, and that we should be refunding them immediately, what choice do we have. We have the leaflets in branch that explain it all. Surely if someone decided to take the matter to the ombudsman, we would be the ones in the wrong here.
Anyway I'm leaving next week after 26 years, I can't stand the sales pressure and lack of staff any longer, I've got a new job earning £2 an hour less, but at least I will be able to sleep at night.

Meltdown_2

Sorry to butt into an internal Natwest discussion here ...
but you seem to be agreeing that your bank doesn't follow the laid-down rules for banks overall.
Perhaps a job for ... "Super-Martin"? :money:

natweststaffmember

Well, Meltdown, amanda and me both work for the bank. I think it can be debated as to whether you want people to be serving customers and avoid queues that are the bane of people.

Amanda, I could tell you were unhappy months ago from the posts on here. So from one colleague to another, GOOD LUCK TO YOU.
The Bank will have to carry me out kicking and screaming!.

LittleMax

I went into a NatWest branch a week or so ago to enquire about a refund of a disputed direct debit payment. This is the final DD to Tiscali (ex Pipex ) broadband who have been abysmal when it came to ending my contract (but that's a whole other issue). My Dad had told me about the guarantee having approached Nationwide for the same thing ... top marks to Nationwide they gave him an immediate refund of the disputed payment.

Natwest first tried to tell me that the payment in question wasn't covered by the guarantee / indemnity scheme since the payment had been taken before I cancelled my direct debit. After me pressing the issue the member of staff eventually went off to speak to her supervisor and then decided that they could request the money back from Pipex, but that since it was not the bank's error they could not credit my account straight away. She took down the details and said it would be sent through to be processed and they would then request the money back from Pipex and will write out to tell me the outcome. I have no idea what information she has put on the screen - she refused to give me a copy. When I asked for something to show that I had made the request, said that all she could do was date stamp a compliments slip with indemnity requested on it.

Thank you for the information (I didn't belive my Dad!). I am going back in to Natwest tomorrow to ask for the money straight away.

Night-owl_6

I must point out although I never knew about this up until recently, unless the person that you have signed the direct debit with provides the DD Guarantee then they will not give a refund the bank as they do only say to sign direct debit forms that carry the guarantee however if you have not set it up the bank HAS to give you a full and instant refund of any money taken from your account:
Your rights

Direct Debit is one of the safest ways of paying your bills. Organisations using the Direct Debit Scheme go through a careful vetting process before they're authorised, and are closely monitored by the banking industry.

The Direct Debit Scheme protects you and your money by means of the Direct Debit Guarantee.

This Guarantee is offered by all banks and building societies that take part in the Direct Debit Scheme. The efficiency and security of the Scheme is monitored and protected by your own bank or building society.

The Direct Debit Guarantee

• If the amounts to be paid or the payment dates change, the organisation collecting the payment will notify you normally 10 working days in advance of your account being debited or as otherwise agreed
• If an error is made by the organisation or your bank or building society, you are guaranteed a full and immediate refund from your branch of the amount paid
• You can cancel a Direct Debit at any time by contacting your bank or building society. We also recommend you notify the organisation concerned.

LittleMax

LittleMax wrote: »

I went into a NatWest branch a week or so ago to enquire about a refund of a disputed direct debit payment. This is the final DD to Tiscali (ex Pipex ) broadband who have been abysmal when it came to ending my contract (but that's a whole other issue). My Dad had told me about the guarantee having approached Nationwide for the same thing ... top marks to Nationwide they gave him an immediate refund of the disputed payment.

Natwest first tried to tell me that the payment in question wasn't covered by the guarantee / indemnity scheme since the payment had been taken before I cancelled my direct debit. After me pressing the issue the member of staff eventually went off to speak to her supervisor and then decided that they could request the money back from Pipex, but that since it was not the bank's error they could not credit my account straight away. She took down the details and said it would be sent through to be processed and they would then request the money back from Pipex and will write out to tell me the outcome. I have no idea what information she has put on the screen - she refused to give me a copy. When I asked for something to show that I had made the request, said that all she could do was date stamp a compliments slip with indemnity requested on it.

Thank you for the information (I didn't belive my Dad!). I am going back in to Natwest tomorrow to ask for the money straight away.

Well spookily, the day after I posted this NatWest called me to say that the money had been credited to my account. Despite this, I have finally beaten my lethargy and am in the process of switching my account to Nationwide.

agsnu

Night-owl wrote: »

I must point out although I never knew about this up until recently, unless the person that you have signed the direct debit with provides the DD Guarantee then they will not give a refund the bank as they do only say to sign direct debit forms that carry the guarantee however if you have not set it up the bank HAS to give you a full and instant refund of any money taken from your account:

All direct debit mandates are covered by the DD guarantee. If you have a contract to provide direct debits, you are required to put the guarantee on your mandate forms. It's an integral part of the Direct Debit system.

frepol

Yesterday a company took a direct debit out of my account a day early. Rang Alliance and Leicester who said that this was not covered by the direct debit guarantee and that they would indeed return the payment - but charge me £25 in the process. In the event they paid it but still £25. The rules seem clear to me from the Financial Ombudsman's website - but according to the second adviser from Alliance and Leicester, these don't apply to Alliance and Leicester. Am I right or wrong?

justfin

frepol wrote: »

Yesterday a company took a direct debit out of my account a day early. Rang Alliance and Leicester who said that this was not covered by the direct debit guarantee and that they would indeed return the payment - but charge me £25 in the process. In the event they paid it but still £25. The rules seem clear to me from the Financial Ombudsman's website - but according to the second adviser from Alliance and Leicester, these don't apply to Alliance and Leicester. Am I right or wrong?

They are right.

The DD guarantee is only in respect of the amount deduct, not any charges applied to the account by your bank.

These charges are between you and your bank regardless to the fact it wasn't your error.

You would think the bank would refund them as a gesture of good will and good customer service but they are in no way obliged to as they have done nothing wrong.

However the company that took the DD caused the charge by taking funds when they were not allowed (as per the DD guarantee they have to notify you which day they will take it ) So they are liable for the damages. Write them confirming they illegal took funds from your account causing you financial loss, include proof and demand the £25.

Easy done done and done

JohalaReewi

I think frepol was saying that A&L charged him £25 for doing a DD guarantee refund. If so, then this is wrong. There is no charge for doing a refund under the DD guarantee scheme. He also said that A&L told him taking the DD a day early wasn't covered by the DD guarantee scheme. Not so. The DD guarantee scheme covers DDs taken earlier than notified.

What justfin said is also true. If by taking a DD early, you go overdrawn and incur penalty charges, interest, etc. These charges are not covered by the DD guarantee scheme. You have to claim these back from the company that took the DD early. The DD Guarantee scheme only covers the amount of the DD.