Direct debit refund by bank or company?

staindude

This is a problem going back a while now so I hope the time spent doesn't count against us:

Me and my ex housemates left a house early summer 2006. The internet was paid monthly out of one housemate's bank account by direct debit but was actually in my name and I remember cancelling it. I remember having to send the confirmation email, and the conversation I had on the phone about the deactivation date as one housemate was staying in the house longer than the rest of us so still needed it on. There is no chance I didn't do it.

In I think October that year they took over £100 from my housemates account by direct debit. When he queried this they said it was for 3 months worth of internet (July,August,September I think). Even if we had failed to cancel it why would they suddenly take 3 months worth in one go? They admitted to him this was a mistake and he'd be given a refund, when no refund came he phoned again but they refused to speak to him since the account wasn't in his name, despite speaking to him before.

So I had to take up the chasing, I've been told once that it would be investigated and that if our phoneline was indeed inactive then it proved our internet was as well, this never got back to me. I was then on a new enquirey told that it was definitely a mistake and he'd be paid within a month.

No time has anyone ever come back to us or any money been paid, I know it's been a while now but I'm sure this wouldn't stop them chasing an unpaid bill. Unfortunately I haven't made a note of any of these phonecalls, I made a thorough note of the last one but I have no idea where. Yes, I'm that badly organised.

My question is could he request the refund from his bank instead since the internet company have been unco-operative?

Thanks, I know this is probably searchable but words from real people are 100x more helpful.

JohalaReewi

Direct debit guarantee scheme.

The company taking money by direct debit must tell you in advance (at least 10 days) how much they are going to take and when they are going to take it. If they take it early, or take too much (or don't tell you) then you are entitled to a full and immediate refund from the BANK under the direct debit guarantee scheme.

Unless the company notified your friend they were going to takes 3 months in one go (instead of the normal monthly amount) this should be covered by the direct debit guarantee scheme. Your friend can ring his BANK and request a full refund under the direct debit guarantee scheme because he hadn't been notified of the amount (he was expecting the monthly amount and they took 3 months). Some banks like to make out it is not their responsibility to do the refund or may say you have to wait for them to get the money back first. This is not true so stick to your rights and let them know what they should be doing.

http://www.bacs.co.uk/BACS/Consumers/Direct+Debit/Your+rights/

Also, your friend should cancel the direct debit (just contact the bank) to make sure it can't be used again. But watch out for the sneaky supplier opening a new one.

anniecave

back in 2006 if I was your friend I would have asked for a refund of the charge via the direct debit indemnity scheme
Almost two years down the line your friend could ask his bank but I wouldn't think they'd do it - but worth a go
Otherwise I'd go back to chasing the internet company - good luck!

staindude

Thanks, we would have at the time but neither of us had any idea this could be refunded by the bank, I only came across this rule today while reading something else on this forum (very useful!). I, now, wish I'd been more proactive on this but during most of that time even simple functions have been difficult.

We'd moved by then so they could have sent notification to the address they had, our defense there is why would we have given them a new address if the account was closed!

I'll get him to contact his bank, he might claim it's too difficult now since he's in Germany but I can't do this bit and the money would definitely be handy for him.

jonesMUFCforever

2 years down the line is far too late.
You should reimburse your mate and fight on yourself.

Why was the internet in your name but the D/D came out of somebody else's account? This is a recipe for disaster as you are finding out.

olly300

jonesMUFCforever wrote: »

2 years down the line is far too late.
You should reimburse your mate and fight on yourself.

Why was the internet in your name but the D/D came out of somebody else's account? This is a recipe for disaster as you are finding out.

I disagree. Pay the mate when you get the money back. If the mate was really worried about the money they would have made you pay them by now.

If the OP has proof they cancelled it then it's up to the mate to get the money back as they paid for it. The mate should have cancelled the direct debit on their account as soon as the contract was cancelled - the OP can't do so as it wasn't their bank account. (I've had companies try and take money out of my account months after I've cancelled direct debits.)

However as the OP doesn't want to drop the mate into it they should make the effort to get the money back. As it's not your bank account you need to go to the internet company directly.

They are required by the Data Protection Act to keep your information on file for about 6 years. If you have documentary proof that you cancelled - the email plus the bills- then write a letter demanding a refund of the payments and enclose a copy of the email and the bills. At the end of the letter state that if they don't refund you, you will have no choice but to take further action. If they don't refund you or don't answer your letter after 3 months you can take them to arbitration which is free.

If you don't have the documentary evidence like the bills but have the email and other proof that you moved out of the house then use this instead.