Unauthorised Direct Debit

PJHilder · 2 November 2007 at 11:42AM

Hi,

Yesterday I received a letter from Citibank saying I was £47 overdrawn and to bring this back to normal. Bit of a surprise to me as I'd budgeted for any standing orders and direct debits and had actually moved the last few pounds before getting paid again into my savings account.

Couldn't check Citibank online until this morning. On there were 2 debits to BT made via direct debit. This was news to me as I don't have a direct debit set up for BT, well I hadn't set one up that's for sure.

Who's the best to go to regarding this? Citibank and/or BT?

Not looking forward to calling BT and waiting for an hour to speak to an adviser.

Any help appreciated.

Paul.

cattie · 2 November 2007 at 11:55AM

I would have thought the banks as they usually offer some kind of direct debit guarantee for payments made in error.

Usually for a direct debit to be set up the company concerned will send you a mandate to sign, so the bank should have a copy of this if one exists.

PJHilder · 2 November 2007 at 12:32PM

Thanks for replying.

I left a message with Citibank via online banking. I'll see what they have to say.

BT did send me a mandate months ago but I never signed it as I didn't ask for the monthly payment plan in the first place. They wouldn't accept a smaller payment than £50 a month to cover calls I might make. As I only use the phone for internet this wasn't much use to me.

YorkshireBoy · 2 November 2007 at 12:42PM

BT can set up a direct debit without a signed (paper) mandate. They do this as an electronic DDI under AUDDIS. However, they still need your permission - if you didn't give it verbally, then maybe you may have given it by signing the agreement (check the small print).

That said, even with electronically set up DD's they still can't debit your account without first telling you both the amount to be collected and the date it is to be collected on.

If you're sure you have not authorised the DDI, then claim from your bank under the DD guarantee. You should also let BT know what you're doing.

rail.link · 2 November 2007 at 12:51PM

How did BT get your bank details ?

PJHilder · 2 November 2007 at 1:16PM

I actually told them no when they asked did I want to set up a payment plan. Wouldn't surprise me if they put it through anyway. My most recent bill was last month which I paid online so why they're debiting money I don't know.

I really don't know where they got my details from. I certainly didn't give them to BT. I usually pay my bill online with my debit card.

JohalaReewi · 2 November 2007 at 1:53PM

Do as YorkshireBoy says. Contact your BANK and ask for a full and immediate refund under the direct debit guarantee scheme. The DDs were not authorised by you, so you are covered. You can also ask if your bank will refund any charges levied as a result of these DDs. They are under no obligation to do so but might if you ask nicely. If they don't, you will have to bill BT for them.

Biggles · 2 November 2007 at 6:08PM

I think you need to speak to BT first.

Their billing has been in a mess for the last month but it looks as though you must have given them your banking details or they couldn't have made a DD. Is it a joint a/c - could your spouse/partner have filled the form in?

Mikeyorks · 2 November 2007 at 8:38PM

PJHilder wrote: »

Who's the best to go to regarding this? Citibank and/or BT?

Citibank ...... to rationalise the payment position via the DD Guarantee, as post #4.

But you will need to have words with BT as to how they can establish a DD Mandate without advising you - and in particular (2 x DDs you said, this month?) as your payments appear to be up to date. If you've used the Sort code / Account facility when paying online - that's all they need for the Mandate. But they're absolutely not allowed to action it without your specific agreement.

And, if I've read you correctly, they're telling fibs about a min payment of £50. My DD is only £12 with them - to cover the line - as I route virtually all calls elsewhere.

Homework · 2 November 2007 at 8:44PM

They perhaps meant that they could only allow a minimum payment of £50 based on your usage. The calculate your amount based on your last bills.

Biggles · 2 November 2007 at 9:36PM

Mikeyorks wrote: »

Citibank ...... to rationalise the payment position via the DD Guarantee, as post #4.

But that's only if BT has contravened the DD guarantee. If, as seems likely, the OP has authorised it (either without remembering or without realising), Citibank can't do anything. BT's admin is a pile of poo but they don't usually invent DDs for the hell of it. ;-)

If you've used the Sort code / Account facility when paying online - that's all they need for the Mandate. But they're absolutely not allowed to action it without your specific agreement.

It is all they need for the mandate, but making a normal online payment wouldn't normally disclose that information.

However, another good reason to approach BT first is that they were in such a mess with all their accounts this last month (they didn't tell me how much my quarterly DD was going to be, or when) so I'm sure they would easily accept that they didn't notify the OP either and might well refund his bank charges without much of a struggle.

Unauthorised Direct Debit

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