Thread: Direct debit guarantee

Sorry - this is slightly off topic.

I was making my student loan repayments by direct debit. They took a payment when there was not enough money in the account - this was my fault I should have called and cancelled it but I forgot. After this had happened I phoned the Student Loans company to tell them I would pay separately by debit card and to make sure that they did not claim the money by direct debit again (as direct debits are prone to keep trying your account) or I would incur further bank charges (edit: to clarify, I do not expect to be refunded the initial charge under the direct debit guarantee - that was due to my carelessness, although I will be getting it back eventually ). Lo and behold a few days later they tried to claim the money again as I had asked them not to resulting in a total of £84 of charges. Alliance and Leicester say that under the direct debit guarantee they do not have to refund these, I have to claim them from the student loans company, however I thought that the bank should refund me and pursue the student loans company if they wanted to get the charges from them - what do you think?

In addition, I will be sending my data protection letter to A&L this weekend - I will keep the forum updated.

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I had a problem with a DD too and they were most unhelpful, and if I remember correctly, quite rude. They told me to take it up with the company involved and rather than reimbursing me just cancelled the direct debit I think. Might be interesting to look into the legal position on this issue.

IIRC a direct debit is a contract between you and the bank, not between you and the company its paying. Therefore it comes under the direct debit guarantee. I know when I changed banks last year A&L withheld a couple of debits and then attempted paying twice on them after the date they were told NOT to pay and more regular payments. I did get every penny of the charges back after threatening to take further action.