Uncancelled Direct Debit
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The direct debit guarantee is unlimited as to time and amount.
Admittedly this is an old one and the rules may have changed but the financial ombudsman would seem to disagree:
http://www.financial-ombudsman.org.uk/publications/ombudsman-news/27/27-directdebit-guarantee.htm
Case 27/3For us to consider a complaint, the event complained about must have happened within six years, or within three years from when the customer ought reasonably to have been aware that there was cause for complaint.0 -
Section 7A.1 of the Service Users Guide and Rules to the Direct Debit Scheme version 5.0A, February 2017 edition states that it is still unlimited:
https://www.dropbox.com/s/gn9s5k4h0oowbgj/sugr1.JPG?dl=043580 -
Section 7A.1 of the Service Users Guide and Rules to the Direct Debit Scheme version 5.0A, February 2017 edition states that it is still unlimited:
https://www.dropbox.com/s/gn9s5k4h0oowbgj/sugr1.JPG?dl=0
The bank doesn't keep data for an unlimited time, so investigations are limited by the amount of evidence they have.0 -
Not nitpicking, just putting them on the right path rather than believe something to be important when it isn't.
What different path will someone take if they are worried about their rating, when it's really their history that they need to worry about? Aren't you just splitting hairs?0 -
So, do you actually know how long this is?
I believe it's 6 years, which is why the financial ombudsman says 6 years.
If it was open ended and everyone made complaints after they knew the bank had destroyed the evidence, then how could the bank defend itself? You can argue that banks should keep data longer, but there are benefits either way. I believe they have an obligation to only keep data as long as is absolutely necessary, which for financial transactions is based on how long they need to keep the data for HMRC.
It's unclear if the bank has done anything wrong. Although the OP says they don't remember setting up the account, they do appear to have been living there at the time. So it doesn't sound like an identity fraud issue. I'd drop that as it sounds like the beginning of a lie, whether it's true or not.
I'd personally try my luck with ofcom first. However unless someone else was paying for a line to the property then BT may not have made a mistake either. If the tenants used the phone line, then you could argue that they committed fraud & that BT are in a better position to investigate and collect the money. If no phone calls were made, then they could argue they didn't know the phone line was there either. BT have costs that need to be covered whether the phone line is used or not.
BT will of course argue that they aren't in the business of tracking down ten years worth of tenants when someone forgets to tell them they moved out. For all they know the OP agreed to pay the phone bill of the new tenants.
Ten months is around how much it costs for them to go to the ombudsman, so they may be relatively confident that the ombudsman will reject the complaint. In my opinion you'd need to show that it was reasonable to not notice the direct debit was being taken for ten years (a diagnosed medical condition would be good) & that you are now in financial hardship.
I'd accept that I probably forgot to cancel it, rather than calling into question that I might have done.0 -
I believe it's 6 years, which is why the financial ombudsman says 6 years.
If it was open ended and everyone made complaints after they knew the bank had destroyed the evidence, then how could the bank defend itself?
As someone who processes Direct Debits I have seen at least one DD Indemnity Claim going back further than six years going into the tens of thousands of pounds; luckily in that case I had the data to reconcile it back and held evidence to make a counterclaim.
The point here I was making may have been one of semantics: The Guarantee itself is unlimited, but it may be limited by your own bank's bookkeeping. That said, with data archival so cheap now, if a customer is current with a bank, I see no reason why they cannot hold records > 6 years.
I have bank statements of my own going back to 2000; if I were to produce those back to my own bank, they should be sufficient evidence to effect a claim. In any case, the bank is not liable; the Service User is. The bank takes the money in 14 working days from the Service User's bank account unless a valid counterclaim can be made (and the rules are very tight on counterclaims). The system is rather one-sided in the consumer's favour.43580 -
I have spoken with my Bank and they have advised that they would not be able to reclaim the money.
The question is now more should I go to the ombudsman or not? There is an offer from BT for 10 months worth of line rental for an account that goes back 15 years. But not sure if I should accept or not.0 -
You will be wasting your time with the Ombudsman. The responsibility for cancelling the account and DD rests entirely with you, and BT are under no obligation to refund you for the service you contracted to. So a 10m refund is very generous.
The supplier cannot cancel a DD, only the account holder can, so, as long as it remains in place, they can draw on it. The fact that you did not use the service is also not relevant.
Did you not notice the erroneous DD amount being taken when you checked your bank statements over the last 14 years-it would have shown up on approximately 168 statements in that period, or 42 if you were on quarterly billing?No free lunch, and no free laptop
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Do a subject access request with bt
This should provide you with all the evidence prior to taking further actionbaldly going on...0
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