Direct debits are they really this unsafe?
Discussion
I re-set (6 month gap) up a DD with a large company. They then try to take nearly 4 time the agreed amount two weeks earlier than agreed. Their excuse was 'we told you we would take the money as soon as we could'.
On the day I got a letter from the company saying they wouldn't try to take the money (the 4 times money) again they tried again!
My bank said it's not their problem as I set up the dd and the company can take what they want.
So I spoke to BACS - the guy tells me that the only recourse I have is via the DD guarantee scheme.
I said that my bank told me I had to go into a branch to fill in a from to get the money back - he said
well you shouldn't but different banks have different procedures.
They, BACS, have no methods in place to stop companies doing this or even telling them off for it.
So if you have any DD's setup be aware you bank account could be emptied at any time!
Simpo Two said:
I bet it was BT or an energy company.
I prefer to be raped for the extra to stay in control and pay quarterly online. And I have paper bills too. Rar!
Me too, there was an article on R4 Money prog a couple of weeks ago where DDs were being set up with just a sort code and account no. for loans from Wonga.I prefer to be raped for the extra to stay in control and pay quarterly online. And I have paper bills too. Rar!
BACS carry out no checks to see if names or addresses on the forms match and it is all done automagically by computer.
If I could have a bank account that didn't accept DDs I would sign up tomorrow.
2 sMoKiN bArReLs said:
Even worse..if you set up a DD then cancel it the originator can set it up again with no further recourse.
As has been said, the method of appeal is the guarantee scheme.
I've cancelled many and the other party has never "set it up again". Quite often they alleged that I owed them money too but they were unable to recover it via DD.As has been said, the method of appeal is the guarantee scheme.
TX.
Terminator X said:
2 sMoKiN bArReLs said:
Even worse..if you set up a DD then cancel it the originator can set it up again with no further recourse.
As has been said, the method of appeal is the guarantee scheme.
I've cancelled many and the other party has never "set it up again". Quite often they alleged that I owed them money too but they were unable to recover it via DD.As has been said, the method of appeal is the guarantee scheme.
TX.
2 sMoKiN bArReLs said:
Even worse..if you set up a DD then cancel it the originator can set it up again with no further recourse.
As has been said, the method of appeal is the guarantee scheme.
Both of those are, IMHO, just wrong.As has been said, the method of appeal is the guarantee scheme.
Simpo - Yes, a large British energy supplier, I get my electric and Gas from them
I intend to refuse to pay extra for not paying by DD as they can't be trusted with my DD details.
Ean - I think the problems is as you say BACS don't do any checks.
DD's are very convenient for us consumers but I was very surprised that BACS have nothing in place to stop companies abusing the system.
I was also surprised that my bank weren't interested in this company taking money that they shouldn't have.
KTF said:
What company was this - name the sector rather than the name if you want.
Why was the DD stopped for 6 months?
Answer to your first question is in my last post!Why was the DD stopped for 6 months?
Q2. Long story short - they wanted to increase monthly DD by 100% I disagreed, Indian call centre did not understand English, etc. etc.
I did not owe them the amount (the 4* one) they tried to take as I had been paying them via internet banking.
skeggysteve said:
My bank said it's not their problem as I set up the dd and the company can take what they want.
Your bank is being rubbish. Is it a Spanish bank?Only time I've had a problem with a DD, I went into a branch of my bank, explained the situation and they reversed the DD payment there and then (from the bank's own funds) and informed the originator on my behalf. The originator figured out their mistake and within a week had refunded me as well, at which point my bank the reclaimed the money they had credited me with.
My understanding is that the originator is supposed to write to you to tell you if they are varying the amount of a DD.
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