BT direct debit charged wrong account in error

[filthiestfis]

I recently changed current accounts and rang the companies I have direct debits with to let them know of my new bank details, one of them BT.
Now Alliance & Leicester, my previous current account which is still open but has £0 is charging me £25 for an unpaid item as BT tried to take money out of my account.
So in this situation, can I demand that BT pay the excessive bank charge due to their own fault in not properly updating their records and withdrawing money from the right account with funds?
I certainly dont expect any sympathy from A&L and am sure they will maintain their stance on the charge.

[factor-fiction]

I assume you gave BT the required period of notice?

[boxtops]

I'm not quite sure how this happened, usually these days when someone changes banks, the new bank takes on the duty of advising all the direct debit organisations about the change of bank (that's what happened to me, anyway, and the offer was there with other banks too). Did you put it in writing to BT after you phoned them? I think that unless you can prove that you contacted them, you might have difficulty getting BT to pay - but it's worth a try!

[filthiestfis]

What period of notice? I rang them and gave them my new bank details to be effective immediately. I didnt inform the bank of my DD changes. I just cancelled them myself on the old account and contacted each company to let them know of the change.

[craft1948]

I think when I worked on direct debits the minimum notice for a change of bank details was 3 days before the next payment was due.

[boxtops]

I wouldn't trust doing it by phone myself, I put everything in writing then you have something to fall back on if (like this) it doesn't work out right. Not sure how you would get on in trying to pursue it with BT - worth a try though, if you have a record of when you phoned them with your new details, and who you spoke to.

[cherrychapstick]

filthiestfis if you cancelled the direct debit the bank can't charge you for the payment as long as you done this a day before then it wouldn't be there ,if so your bank is at fault ,if you done it after i think some banks are 5pm then you are at fault and will have to pay sorry

[craft1948]

I thought the person collecting the direct debit had to cancel it......the person paying by standing orders cancels them..

[filthiestfis]

I cancelled the DD using online banking a couple of weeks ago, so how was it able to go through? Why am I being charged by A&L for not having the funds to cover it when I manually cancelled it well in time?

[cherrychapstick]

no you can cancel your own direct debits at anytime and standing orders,

hope you get it sorted filthiestfis

[boxtops]

Craft yes you are right - the collector (the person the money's to be paid to) originates the direct debit using the information provided by the customer, but a standing order can only be cancellled by the customer. BT's therefore continued to request from the wrong bank although filthie gave them the new bank details over the phone. You can still write to your bank (and I do) instructing them not to accept any more requests for payment from an organisation, say if a membership ends, and they take notice of that and reject any future direct debits.

[boxtops]

^ and now filthie confirms an on-line instruction was given as well. I would follow it up with BT - they are bound to be on to you any way v. soon, to say that you owe them an instalment!

[Buenchico]

If an error is made in relation to a direct debit (irrespective of whether that mistake was made by the bank or by the organisation taking the money) the bank is obliged to compensate the account holder (by refunding the money, or in your case removing the overdrawn amount, and by cancelling any bank charges raised as a result of that error):
http://www.thesmartwa...t-debit-guarantee.asp
(If the error was made by the organisation which took money without authorisation it's then up to the bank to try to get the money back from them).

Simply ask, at any A&L branch, for a 'direct debit indemnity form'.

Chris

[cherrychapstick]

i do mine online and it is done overnight ,don't have to write or phone that way

[filthiestfis]

BUENCHICO: In reply to your message about requesting a direct debit indemnity form, I went into my local A&L branch yesterday and requested this and they said that it had to be done over the phone so I rang A&L and was informed that as BT did not take any money out but just attempted to, there can not be any indemnity requested. HOWEVER, A&L have not only charged me £25 for this attempt by BT, but in addition, they are charging me £5 a day for every day that the account is overdrawn. I AM OUTRAGED.
Your thoughts?

[Buenchico]

Start here, Ed:
http://www.financial-...nsumer/complaints.htm

Chris

[filthiestfis]

Are you not working today Chris? Thanks for your ultra fast reply ;)