Direct debit still coming from closed account

Johnnyhpipe

Hi,

I switched banks 6 months ago and understood that between them they were sorting direct debit transfers, and they did for the most part as my mortgage and insurance etc debits were transferred without any hassle.

The old account is now closed. Its gone. I can't log into the old account online banking even as the account doesn't exist....However my gym membership is still being paid from this... I've only just found this out thrpugh the gym, but essentially my old bank are paying my gym membership for me...

What happens if I allow this to continue? I have even moved house since closing the account so the old bank can't even contact me. It seems highly unusual! Anyone have anything similar?

Sparko

To be honest I highly doubt it's actually being paid. I submit direct debits in work, and if the customer account is closed we receive a failed direct debit notification for every attempted DD, noting that the account is closed.

Maybe the gym's accountant just hasn't copped it!

Johnnyhpipe

I've asked the gym about that. They checked and have confirmed that the money has hit their account every month to date. They even gave the account number the money was paid from - which was my now closed account. Seems very weird!

Mort5000

I'm not really following how this is a discussion or question.
Just update your bank account details at the gym.

Johnnyhpipe

Mort5000 wrote: »

I'm not really following how this is a discussion or question.
Just update your bank account details at the gym.

Question is as per first post. What happens if I let this continue? I.e - i'm getting free gym membership but the gym are getting their money. If i leave this go unnoticed then can the bank come after me despite the fact that i have closed the account?

Glass fused light

Johnnyhpipe wrote: »

Hi,
I switched banks 6 months ago and understood that between them they were sorting direct debit transfers, and they did for the most part as my mortgage and insurance etc debits were transferred without any hassle.

The old account is now closed. Its gone. I can't log into the old account online banking even as the account doesn't exist....However my gym membership is still being paid from this... I've only just found this out thrpugh the gym, but essentially my old bank are paying my gym membership for me...

What happens if I allow this to continue? I have even moved house since closing the account so the old bank can't even contact me. It seems highly unusual! Anyone have anything similar?

How did you close the account? Do you actually inform your old bank that you were closing it?  Your old bank do not and should not accept any instruction from anyone other than the account holder.  As the gym are pulling money from the account it suggests that you have not properly closed the account and your old bank are allowing an overdraft on the old account.  

The bank have the ability to impact your credit rating so you should call (into) your local branch and ask them to send you a confirmation that the account has been properly closed.  If the error was as a result of the banks error it's a moral decision. If it's as a result of your error you need to try negotiate the bank charges and repay the DD's amounts and close the account

Ally Dick

My guess is that your account is not closed and is instead going overdrawn to cover the gym membership. You must have an overdraft on it as well, or the direct debit to the gym wouldn't be paid....