Direct debit mandates (some info)

[gloomygoblin]

I was told by someone at my bank a while back that the only way to be 100% sure of stopping a direct debit payment coming out of my account, was to close the account and open another which would obviously have different details.

 

To be honest I didnt think there was much possibility of what I had been told being correct, but after having 2 direct debit payments removed from my account after that arrangement had been cancelled by me, what I had been told was then grudgingly confirmed by the banks fraud department!

 

So before setting up a direct debit mandate, its worth remembering that there is nothing you can do to stop payments being taken, short of what I had to do, which was to threaten those involved with immediate legal action should the payments continue for any reason!

 

The direct debit guarantee scheme appears to be a complete waste of time, unless you action any untoward payments within a few days of them being taken, which in many cases is quite impossible.

[gordies]

I was told by someone at my bank a while back that the only way to be 100% sure of stopping a direct debit payment coming out of my account, was to close the account and open another which would obviously have different details.

 

To be honest I didnt think there was much possibility of what I had been told being correct, but after having 2 direct debit payments removed from my account after that arrangement had been cancelled by me, what I had been told was then grudgingly confirmed by the banks fraud department!

 

So before setting up a direct debit mandate, its worth remembering that there is nothing you can do to stop payments being taken, short of what I had to do, which was to threaten those involved with immediate legal action should the payments continue for any reason!

 

The direct debit guarantee scheme appears to be a complete waste of time, unless you action any untoward payments within a few days of them being taken, which in many cases is quite impossible.

 

 

You need to change your bank !!

 

Once you have cancelled a direct debit in writing then it has gone, it ceases to exist.

 

If your bank pay out on it then it is their responsibility to put that money back into your account.

 

Always cancel a D/D in writing to the originator and copy to your bank.. Most, if not all, online banking allows you to cancel direct debits online and they immediately drop off the recurring payments system.

 

Don't take this from your bank, get them told, they are just fobbing you off !

[citizenB]

Sorry, you have been misled.

 

Once you have made it quite clear to your Bank that you are cancelling the Mandate - they must comply. If they make a payment after your cancellation notice has been received - they are obliged to refund the money into your account.

 

You must cancel the DD a certain time prior to the payment date. It might be 5 days - you would have to check on that.

 

Meanwhile, you might want to have a read of the FOS DD mandate information.

 

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/27/27-directdebit-guarantee.htm

[gloomygoblin]

Thats exactly what I thought at first, but cant quite understand why the banks fraud department as well as a member of staff would suggest otherwise? It looks as though the bank are going to have to provide a refund.

[raydetinu]

Yep, but you need to have told your bank to cancel the DD not just the payee!

If you have told the bank in writing to end the DD then thy must not them take anything and if they do the bank will refund it.

[gloomygoblin]

I informed the bank verbally to stop the DD, and at the time there was no indication from them that the request needed to made in writing. Is there any legislation relative to DD payments I wonder, as it seems worrying that I seem to have been misinformed on 2 separate occasions by bank staff?

[citizenB]

I informed the bank verbally to stop the DD, and at the time there was no indication from them that the request needed to made in writing. Is there any legislation relative to DD payments I wonder, as it seems worrying that I seem to have been misinformed on 2 separate occasions by bank staff?

 

I posted the link to this in post # 3

[citizenB]

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/27/27-directdebit-guarantee.htm

 

The following statements are for business and banks..

 

 

 

The direct debit guarantee is a powerful safeguard for customers. So it’s important that firms make sure their staff understand its provisions.

 

Unfortunately, many do not. Here are some of the things firms have told customers (incorrectly) when problems have arisen:

 

"We don’t operate the direct debit guarantee."

"We need a month’s notice to cancel a direct debit."

 

if the originator or the bank/building society makes an error, the customer is guaranteed a full and immediate refund of the amount paid.

customers can cancel a direct debit at any time by writing to their bank or building society.

 

 

then if you scroll down the link I give above - it gives some case studies where banks have abused their position and refused to co-operate.

[gloomygoblin]

In my case the bank involved did not advise there was any need for a written instruction to cancel the arrangement, so this was done verbally. I guess this means the guarantee scheme isnt applicable, simply due to my not having looked into matters more carefully, and being unaware of the need for a written instruction? Its worrying though that in this instance I have apparently been lied to my 2 members of bank staff, who claim the only certain way of stopping a DD payment is by closing the account from which its being drawn?

 

Incidentally the DD in this case originated from an automated system, but I guess that doesnt make a scrap of difference to the fact I was ignorant of the need to cancel in writing? Thanks for the help on this one, and not altogether surprised that members of bank staff tell lies to customers...................

[gloomygoblin]

The 2 dodgy DD payments taken from my account have now been refunded, One Sure is being investigated by TSS and I have made formal complaint to the appropriate ombudsman service.

[citizenB]

The 2 dodgy DD payments taken from my account have now been refunded, One Sure is being investigated by TSS and I have made formal complaint to the appropriate ombudsman service.

 

 

Excellent news

[raydetinu]

Cool!

[gloomygoblin]

Thanks....................still waiting to hear if the people who took the dodgy DD payments, are operating without an OFT licence (OFT had no record of them being licensed)

[SPinDerbyshire]

Which bank was it? This happens a lot, banks failing to inform customers of the process for cancelling a DD, or simply denying that it's possible. I think it's a combination of poor training and downright laziness.

[gloomygoblin]

Santander..................and yes I would agree with the laziness suggestion 100%!