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Direct Debit Default charges.

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  • 01-08-2013 12:18pm
    #1
    deisedevil
    Registered Users Posts: 3,252 ✭✭✭


    I missed a monthly payment on my car insurance (through no fault of my own but that will make no difference one way or the other). The bank charged me €10 for a returned direct debit charge and when I called my insurer they have given me a further direct debit default charge of €15. This they say is made up of an admin fee and a charge the bank place on them for requesting funds when none were available.

    How can this be right? I can't understand how the bank are entitled to charge me and my insurer for my mistake and then the insurer just puts that charge back on me again. Why would the bank not charge me the full amount to begin with? Is it that the banks don't want to be seen to be charging too much for missed direct debit payments and this is a way around that for them?


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    #2
    deisedevil
    Registered Users Posts: 3,252 ✭✭✭deisedevil


    Spoke with the bank. They didn't charge the insurers at all. Spoke with the insurers who again advised the bank had charged them but backed down on this when I told them I had spoken with the bank. They now say that the full €15 was an admin fee. I asked why it was so high and what did this cover. They told me it covered notifications. I have not received any notifications. They said they sent me an email, but they didn't. So then she tells me that it's a penalty for not paying on time and that it's in my t&c's so I'll have to put up with it.

    123.ie charging extortionate penalties.


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    #3
    dudara
    Registered Users Posts: 33,518 ✭✭✭✭dudara


    Moved to Banking & Insurance & Pensions

    dudara


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    #4
    BuffyBot
    Registered Users Posts: 24,924 ✭✭✭✭BuffyBot


    I'd imagine it's all very clearly laid out in the 123.ie's terms and conditions.

    At the end of the day, they follow a Ryanair-esque model: i.e low base prices, but charges for things which most insurers cover. This is the trade off you make.


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    #5
    wmpdd3
    Registered Users Posts: 9,624 ✭✭✭wmpdd3


    Must of the utilities have raised their charges to around the 10 euro mark too. This just drives me further away from dd's. This is on top of the bank fee.

    When I changed to esb's cheaper tariff, I saved about 21 euro over a year and then wiped out any saving when they presented the dd before Christmas because the bank was closing for 6 days, I missed the dd twice as I only got paid the day befits the DD was due.

    Cost me a mint in charges between both.


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    #6
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    Its basically the missed DD caused more work for the bank and insurer so both are charging a fee for this extra work each have to do.


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    #7
    deisedevil
    Registered Users Posts: 3,252 ✭✭✭deisedevil


    chris85 wrote: »
    Its basically the missed DD caused more work for the bank and insurer so both are charging a fee for this extra work each have to do.

    I wasn't at all confused as to why they charged it. I accept the bank charging €10 but what I don't accept is 123.ie lying to me about my bank charging them too and that this is why they pass that cost on to me along with an admin fee when in fact they eventually admitted that the whole €15 was an admin fee. These admin fees are pulled out of their ar$es! There is no way in hell it costs them €15 for me to call them and pay through my Visa. It took 2 mins. That's not at all worth €15 and it was me who had to do the chasing!

    As someone else mentioned, they follow a Ryanair style system of charging over the top for any extras.


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    #8
    athtrasna
    Closed Accounts Posts: 13,420 ✭✭✭✭athtrasna


    I process direct debits in my job and can confirm that the bank do indeed charge us for returned direct debits (and bounced cheques). Not sure what the fees are off the top of my head but the bank are not telling you the truth.


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    #9
    deisedevil
    Registered Users Posts: 3,252 ✭✭✭deisedevil


    athtrasna wrote: »
    I process direct debits in my job and can confirm that the bank do indeed charge us for returned direct debits (and bounced cheques). Not sure what the fees are off the top of my head but the bank are not telling you the truth.

    So the banks are cleaning up by charging customers twice for their mistake. Very handy way of over charging customers by charging them directly and then indirectly when the insurer recoups their money from the customer for the charges they incur. Sounds like a bit of a scam.


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