Bank reinstated Direct Debit

Tazz T

I cancelled my service from NTL over a year ago and cancelled my direct debit. Yet last week I discover an amount taken from my account. I phoned both NTL and Permanent TSB, my bank. NTL say they have been trying to take the money for a year and it kept failing until last week. PTSB says that even though I cancelled the direct debit they still paid it because the agreement is between myself and NTL.

I understood that once you cancelled a Direct Debit that was it, the company couldn't take the money. Has anybody else had experience of this?

Paulw

My understanding is that you must cancel the direct debit with NTL (or the supplier) and not with the bank. What the bank have said is correct. You signed an agreement with them, and provided them with your bank details.

eve

It seems strange that NTL would say that they have been trying to take money out of your account for a year (presumable because they thought you owed them money) and not contact you telling you that you owe them money (which may or may not be the case).

Kimbot

YOu have to cancel with NTL and the Bank. Give the bank a copy of the letter you sent to NTL cancelling same and all will be sorted.

GerardKeating

Tazz T wrote: »

I cancelled my service from NTL over a year ago and cancelled my direct debit. Yet last week I discover an amount taken from my account. I phoned both NTL and Permanent TSB, my bank. NTL say they have been trying to take the money for a year and it kept failing until last week. PTSB says that even though I cancelled the direct debit they still paid it because the agreement is between myself and NTL.

I understood that once you cancelled a Direct Debit that was it, the company couldn't take the money. Has anybody else had experience of this?

In theory NTL are required to get a signed consent form for a DD, but they almost never bother.

Did you actually sign a DD form with them?

jor el

Under no circumstances can a bank reinstate a direct debit without the account holders permission. PTSB are in serious breech of the direct debit rules here and they should be reported to the IPSO for it. You should also contact them and inquire about their official complaints process, and start one.

Check here for the rules on direct debits. The important part to note is

The payer can cancel or amend the Direct Debit instruction at any time by informing their Bank in writing. They can also inform the Originator. All correspondence should be retained.

The payer’s Bank will then inform the Originator of the cancellation or amendment.

If the instruction is cancelled no further collections are permitted.

If it is established that an unauthorised Direct Debit was charged to a Payer’s account the Payer is guaranteed a prompt refund by their Bank.

PTSB should have informed NTL that the DD had been canceled by you. There is actually no requirement for you to tell NTL, but it's often a courtesy to do so.

If NTL were trying this DD for a year without informing you, then they are wrong. If the bank reinstated it without your permission, they are also wrong. If you owe NTL the money anyway, you have to pay them, but you don't have to put up with this treatment from the bank or NTL.

cgarvey

GerardKeating wrote: »

In theory NTL are required to get a signed consent form for a DD, but they almost never bother.

Not anymore, I don't think. Originators of a higher trust/status can establish a DD on a verbal contract. Can't find the specifics (because downloads on ipso.ie are broken) but I remember looking in to this before.

foggy_lad

cgarvey wrote: »

Not anymore, I don't think. Originators of a higher trust/status can establish a DD on a verbal contract. Can't find the specifics (because downloads on ipso.ie are broken) but I remember looking in to this before.

they can set up a DD by recording you agreeing to it on the phone but it always makes more sense to have the mandate sent to you to sign as it will not delay things very much and leaves you with more power to cancel and control your finances

cgarvey

Not to the originator it doesn't You've no more control over the DD with a verbal or written contract in the first place anyway.

BountyHunter

Hi Tazz,

I am with PTSB also. Last December I cancelled my house insurance direct debit with no issues, just to clarify the 12 months were nearly up at that stage.
I actually did it online and didnt contact the insurance company (was not happy with level of service so decided why should I bother). The insurance company sent me another direct debit mandate to fill in and return to them, needless to say that ended up in the bin..
What manner did you cancel the direct debit, did you call them and ask them to do it or did you do it over the net?
It was always my understanding that your signature is required on a mandate to allow any debit to be processed and if its cancelled another signed mandate is required.
BountyHunter.

Tazz T

To be honest, having talked to both parties, I'm not going to follow it up. I think I owed the money and it's not worth the hassle for the 30-odd quid.