Cancelling Direct Debit

king2 · 10-12-2021 1:59pm #1

I have just been talking to EBS about cancelling a direct debit to Airtricity and they say that as well as having to call in to their branch and give written notice to cancel I also have to notify Airtricity. Then I asked what would happen if I didnt notify Airtricity, can they still operate the direct debit and EBS said it depends on the contract you signed with them. So what is the legal position, do I have to notify both bank and service provider? If I do notify the service provider and they say I owe them money can they refuse to cancel the direct debit?

10-12-2021 2:32pm

Instruct your bank to refuse any direct debits from Airtricity. They must not process any debits from Airtricity on your account after that, and they must provide that facility (a company "blacklist"). These are requirements of financial institutions participating in the SEPA DD scheme.

They may suggest or provide a mandate cancellation instead - don't use it. If you only cancel the mandate, Airticity can just set up a new one and it will be processed. They can't do that if you've blacklisted the company.

Your contract with Airtricity has no bearling on what you've instructed the bank to do - whether you still owe them money or not is between you and Airtricity. For all the bank know, you're deciding to pay them by credit card, or cheque, or from a different account from now on

king2 · 10-12-2021 10:43pm

Ok, thanks for that, do you know where thats written down in case they dispute it ie the obligation on financial institutions to blacklist companies for customers?

Deagol · 10-12-2021 10:46pm

Hi OP, just so you know how it works in practise!

I cancelled a DD to Eir a couple of years ago. Just went into the bank, told them I was disputing Eir's billing and I wanted to cancel the DD. Bank got me to sign a form and that was it. Eir have been sending me threatening letters since - although to the wrong house so I don't actually get them :)

Jim2007 · 11-12-2021 9:50am

https://www.boards.ie/discussion/2058222238/cancelling-direct-debit

From a legal point of view these are to separate things. Provided you follow the procedures set out by the bank you are entitled to cancel a DD and the bank is obligated to do so. However their advice concern notification to vendor is good advice although perhaps not presented in a good manner.

It is important to understand that canceling a DD, failing to notify the vendor and continuing to use the vendors services even if you are in dispute with the vendor could in extreme situations result in a criminal complaint. Whether it would be upheld is another matter.

11-12-2021 12:52pm

Here, EBS have their restriction form online: https://www.ebs.ie/content/dam/ebs/pdfs/useful-forms/ebs-dac-sepa-direct-debit-restriction-application-form.pdf

You want Account Level Restriction => Add Black List. You need the Creditor OIN, which is a unique identifier for Airtricity (not their IBAN). EBS should supply it on-demand

king2 · 11-12-2021 1:14pm

https://www.boards.ie/discussion/comment/118304997#Comment_118304997

Thanks again, Creditor OIN, presume thats the same as "Creditor Identifier" as Airtricity call it on this form?

Republic-of-Ireland-Direct-Debit-Mandate.pdf

?

daheff · 11-12-2021 1:17pm

OP,

If you are just moving providers then tell Airtricity to cancel the DD as you aren't a customer anymore.

Getting the bank to 'blacklist' them from your account could cause issues in the future if you try to move back to them.

11-12-2021 7:04pm

https://www.boards.ie/discussion/comment/118305082#Comment_118305082

Correct

https://www.boards.ie/discussion/comment/118305093#Comment_118305093

My reading of the OP is that there is a dispute between the parties over whether there's money owed or not. If that is the case, telling Airtricity not to take the money will have no effect

11-12-2021 7:07pm

Other electrical companies won't take you on as a new customer if you've a debt to your existing one. Just to flag.

silver2020 · 11-12-2021 7:20pm

If you simply stop and block airtricity as one poster suggests, airtricity can very much add multiple unpaid charges to your account.

It is in their contract just as it is in virtually every similar contract.

They can also give a debt to a collection agency. The collection agency most likely provides credit management to many companies and you suddenly find you cannot get a mobile contract or a Littlewoods account or a new energy supplier without paying a deposit.

It's best to calmly discuss the issues with someone and if you can't agree things then put it in writing informing them that you will no longer be paying by direct debit until the dispute is settled.

But failing to inform them may lead to multiple unpaid DD fees on your account.

I certainly would ignore the first response on this thread. It could destroy your credit rating with many companies as there really are just two debt management / credit report companies here that utility and other companies use. And if you are blacklisted due to issues with one company, that will transfer to many many others.

OO7FITZY · 30-01-2023 5:13pm

is there an agreed standard service level agreement between bank and customer to cancel a direct debit?

EBS bank cannot tell me how long it will take and if it has been acted on or not

I can find nothing in the T&Cs

30-01-2023 5:59pm

https://www.boards.ie/discussion/comment/120178567#Comment_120178567

Who is the Direct Debit originator i.e. who is the money going to? Your bank can't "cancel" a direct debit (unless they are also the originator e.g. for a mortgage payment or a credit card bill). You cancel a direct debit with the originator.

What the bank can do is put a restriction on your account, preventing payment of direct debits to a specific originator (or originators). That doesn't prevent the originator from presenting the direct debit, just prevents the bank from fulfilling it. It does not cancel your contract with the originator: if you still owe money, the restriction on the account doesn't change anything, it just means you're refusing to pay.

If a restriction is what you're requesting, it should be actioned within a day or two of the bank receiving your request, assuming you've followed their procedures - the EBS form for restrictions is posted above. They should absolutely be able to immediately tell you what direct debit restrictions are currently active on your account. If they can't, you're probably talking to a helpdesk script "robot", you'll need to escalate.

Remember that you can demand a refund on any direct debit payment for any reason within 8 weeks of the payment, and your bank are legally required to action it. Again though, this does not change your contractual obligations with the originator

OO7FITZY · 30-01-2023 6:04pm

thx...I'll follow up

walterking · 30-01-2023 9:51pm

Be very very careful about following instructions from an anonymous user online.

Read the terms and conditions of your contract very carefully especially the sections about disputes.

If the disputed amount goes to a collection agency, then that collection agency will have you marked and you will have a negative report should they be used to credit reference you.

I would do my best to work it out.

Cancelling Direct Debit

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