Overpayments of unnoticed Direct Debit

[smoothvelvet]

Having mistakenly overpaid a quarterly Direct Debit to a company by mistake to the tune of £2,000 over a couple of years, Company have said that I should have noticed it and will only pay back in installments. He has said the Law is on his side and he only needs to pay back in the same installments (quartely). Is this correct?

[Ellipsis]

Depending on the details, you may have a claim under the Direct Debit Guarantee scheme. See these two pages:

http://www.financial-...ctdebit-guarantee.htm

http://www.financial-...nsumer/complaints.htm

[smoothvelvet]

oops how silly am I? It is a standing order not a Direct Debit and I don't think standing orders have the same guarantee attatched to them.

[themas]

I don't know the answer to your question, but perhaps this will teach you a lesson - to make sure you get bank statements every month & check them. I never cease to be amazed at the number of people who don't do this.

[themas]

To be more constructive, you could take out a Court claim against the company, which I assume they would be unable to defend if they have accepted that they owe you the money. The Court should then make a judgement in your favour for the full amount be be paid immediately unless the Court accepted the company's view that they should only pay by instalments.

Whether this will work depends on the Court's attitude & on whether the company is solvent enough to make the payment in full. You would probably have to go to the enforcement stage anyway if they were unco-operative.

[boxtops]

Standing Orders can only be cancelled by you as the originator - I hope you've stopped it now!

[cathfromsaron]

standing orders are outside the dd guarantee and are completely governed by the account holder. they need not pay you anything & i would take their offer!

[Maggoty]

Not the same situation entirely but my dad was underpaying his income tax for years before the tax man spotted their mistake.

My dad insisted on paying back the money in the same way he'd been paid it - and won.

May not be the same thing tho.

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