Advice needed on Direct Debit issue

Rafa1977

Hi, looking for advice here or where I stand. I had direct debit set up with my bank for Health insurance. I cancelled it 3 weeks with both my Bank and health provider but the payment was still taken out today when I checked on line. Who is at fault here or where do I stand. I have send an email to the Health provider asking why money was taking out, and will ring my bank in the morning. Thanks.

MunsterCycling

Bank is at fault for allowing a discontinued DD to be processed and take no guff from them about you having to cancel it yourself with the initiator (even though you did already), tell them to learn about the DD scheme rules.

MC

Jet Black

Businesses can still call for direct debits from your account even when you cancel it with the bank. What usually happens is it will show as debited on your account but the banks system will see that the business is not allowed to take the money and not honor the DD then credit your account 1-2 days later.
Thats if you have it canceled with the bank. The same thing happens if you have no money in your account.

Rafa1977

MunsterCycling wrote: »

Bank is at fault for allowing a discontinued DD to be processed and take no guff from them about you having to cancel it yourself with the initiator (even though you did already), tell them to learn about the DD scheme rules.

MC

Will I be entitled to that money back?. I have just gone on line to my account again, and I have seen previous D/D that I cancelled but they are still active!!, but no money seems to have been taken from them. ESB from previous address, Quinn insurance from nearly 3 years ago!!!!.

amcalester

If you have cancelled with the bank and the heath insurance provider then you should call the bank and explain that this was an unauthorised direct debit.

Under the direct debit indemnity scheme the bank should then refund you the money and contact the heathcare company for their refund. If it turns out that the healthcare company had authorisation to take the money i.e you didnt inform them early enough to cancel that months DD or you still owed them a payment (for whatever reason) then the bank is entitled to take the money back from you.

Its important to remember that just cancelling a DD with a service provider may not be enough to break the contract and they may be entitled to payment based on the contract you signed with them when taking out the policy.

Rafa1977

amcalester wrote: »

If you have cancelled with the bank and the heath insurance provider then you should call the bank and explain that this was an unauthorised direct debit.

Under the direct debit indemnity scheme the bank should then refund you the money and contact the heathcare company for their refund. If it turns out that the healthcare company had authorisation to take the money i.e you didnt inform them early enough to cancel that months DD or you still owed them a payment (for whatever reason) then the bank is entitled to take the money back from you.

Its important to remember that just cancelling a DD with a service provider may not be enough to break the contract and they may be entitled to payment based on the contract you signed with them when taking out the policy.

I have try and find the handbook with the terms and conditions but as far as I am aware the timing of my notice wasnt a issue, as they didnt say anything when I spoke to them and when I emailed them, except to try and get me to maybe down grade my plan.

amcalester

If you cancelled it within the agreed time limits then contact your bank and say it was an unauthorised DD.

They then have to refund you the money and then they chase the DD originator for the amount taken. (Actually I think its the DD originators sponsoring bank than pays the refund)

If the person in the bank advises you to contact the originator just say that you cancelled it with both the bank and the originator and under the Direct Debit Guarantee the bank has to refund you the money.

More info here www.ipso.ie if you can read through it all. Just click on Direct Debit Scheme Rules on the left hand side of the screen. The important bit is on page 9.

kittenkiller

Call your bank *today* and lift them out of it.

There's still a chance that they can return a rejection due to Instruction Cancelled on the account you hold with your Health Insurer.

Then get onto your insurer and ask why they requested payment when they shouldn't have and demand a refund if the payment clears with them.

amcalester

"Lifting them out of it" wont get you anywhere. Be firm but polite.

From the info you've supplied here it looks like you are in the right so you should have no problems.

Direct Debits go through automatically so it was most likely just an error on the system so give the bank a chance to rectify the issue.

kittenkiller

amcalester wrote: »

"Lifting them out of it" wont get you anywhere. Be firm but polite.

I beg to differ.
The OP cancelled the mandate with the bank and they for whatever reason did not act quickly enough.
A DD mandate must be based on the trust that all parties act properly and are bound by codes of practice that must be adhered to.

Firm but polite should have been the initial request to cancel the mandate, further professional action is required now that they have acted outside the guidelines given to all banks for dealing with direct debits.

amcalester

This is true but we dont know why the DD went through. It could be because the bank didnt cancel it when requested or it could be that it had already been requested by the originator (unlike given the 3 week timeframe) or if the originator is on Direct Debit Plus and used the transaction code 01 then its very hard for the bank to stop it from going through.

But you are right about the trust aspect its just that in Ireland the whole system isnt monitored or controlled and ipso are useless. Most banks and companies dont know the rules to they system at all.

So in the first instance just be polite and they are much more likely to try and help you.

The best of luck anyways

Walkman

What gs direct debit plus, and code 01?

kittenkiller

Walkman wrote: »

What gs direct debit plus, and code 01?

Direct debit plus is a paperless mandate system so the customer does not need to fill out and submit a mandate request form and a 01 code is the code used to submit a payment request to the bank in order to create a mandate.

Rafa1977

kittenkiller wrote: »

Direct debit plus is a paperless mandate system so the customer does not need to fill out and submit a mandate request form and a 01 code is the code used to submit a payment request to the bank in order to create a mandate.

Yes you may be right on this. The Bank have said its not their fault, even though I asked them to cancel D/D and cancelled with my Health provider, as I set the D/D up with the Health provider and not with the bank. Health provider still hasnt come back to me, I rang them today and ended up on hold, so sent email, hopefully will hear something in morning. Bank was saying D/D can still get through, I personally dont understand how, but I blame the Bank as they authorised for the money to be taken from my account. More than anything its just a hassle, as I dont have money to cover my rent for Thursday, so I have to move money from one account to another to cover the rent, ahhhhhh!!.:mad:

dudara

Thread moved to Banking & Insurance & Pensions

dudara