Cancellation of all Direct Debits by bank

aspro_2

Can a bank cancel all direct debits (except the DD for the bank loan) which include Mortgage, house insurance, health insurance, life insurance, car insurance and other important expenses following the return (bouncing) of other direct debits?

I queried the bank and they confirmed it was not in their terms and conditions to do so,but,just said that they were adhering to company policy.

I argued with them until I was blue in the face but they were not prepared to budge an inch but said that they would reinstate them in a months time !!!!

Where is the logic in that ? because I now have to sort out payment of all our direct debits for one month only where some of the companies will only accept payment by DD.

ShelfStacker_3

Basically it's because you've bounced lots of DDs. It's mainly so you don't run up more fees/debt on your account, and they are entitled to do this.

Contact the companies you owe money to and discuss a solution.

dunstonh

Can a bank cancel all direct debits (except the DD for the bank loan) which include Mortgage, house insurance, health insurance, life insurance, car insurance and other important expenses following the return (bouncing) of other direct debits?

Yes they can.

Where is the logic in that ?

You are now less in debt with the bank than you would have been if they had paid them and if they had bounced them they would have charged you each time so you have saved charges.

Banks only tend to cancel the direct debits and standing orders if you are a frequent bouncer and you dont communicate your problems with the bank and/or they see your account as trouble and are trying to protect their liabilty. When this happens, it usually means your standing with the bank has fallen to a very low level and if things dont improve then you will find the bank cancelling the overdraft and passing the account on for debt collection.

Considering your poor financial position, it really isnt a good idea to get on the wrong side of the people that will be making those sorts of decisions.

amandathepanda

The bank are doing you a favour here, every dd that bounces costs you approx £35, you would keep a better track of your finances and avoid more fees by either paying with cash and a payment book over the branch counter.

Etherelda

My bank have just done this to me, quite a shock, especially as my car insurer won't accept any payment but a DD. I rang all the people I had a DD with and told them I was changing accounts (which I have, just jumped ship to Alliance and Leicester).

I suppose this helped me get to my lightbulb moment. HSBC gave me one hell of a wake up call. This was after 2 DDs bouncing this month, and 1 last month. But HSBC are gonna get even more peeved when I pull my wages out on thursday, and apply for a DMP, and claim back my bank charges :rotfl: :rotfl:

So yes, it will in the long term save me money

Doshman_2

Bounced Direct Debit

My bank failed to pay a direct debit for a Professions subscription. OK I found out in time and sent a cheque.

The bank did not tell me they bounced the DD without any reason, plenty of funds available.

Had I not known I could have been prevented from carrying on with my profession.

Now the bank sends out charges automatically, I should have the same option.

Doshman

Night-owl_6

Banks can be thick sometimes.
Was this TSB or Barclays by any chance?

olly300

Doshman wrote: »

Bounced Direct Debit

My bank failed to pay a direct debit for a Professions subscription. OK I found out in time and sent a cheque.

The bank did not tell me they bounced the DD without any reason, plenty of funds available.

Had I not known I could have been prevented from carrying on with my profession.

Now the bank sends out charges automatically, I should have the same option.

Doshman

Yours is a different issue and can be sorted out by following your bank's complaints process. Go to their website and follow the process if you are lucky they may give you £15-25 for your trouble.

dunstonh

Rather than complaint, it would be an idea to find out why the request was rejected. In the case of new payments, its often "no mandate held" as the payment was requested before the mandate was set up. That or the originator changed the reference number without notifying the bank.