Is my bank at fault for letting money go from my account for a direct debit that hasnt been setup

[carolants]

My bank is Lloyds TSB and yesterday I discovered money had been paid out of my account by way of a direct debit that wasn't set up. The company who requested it was Virgin Mobile for the pay monthly phone lines I have with them and although I have paid them with my card over the phone every month from lloyds no such direct debit has ever been set up with virgin mobile from my lloyds account. I have heard that its the fault of the bank because they should never have let the money go out of my account via direct debit at all. Does any one know if this correct and if so will the bank have to cover the cost and give me 34 pounds

[factor-fiction]

So you normally pay by direct card but this time the money was taken from your account. I'm not sure what the problem is- have you paid twice? Was there an agreement that if you didn't pay on time they'd deduct it ?
Sorry i don't follow this yet

[dzug2]

It doesn't sound like a direct debit at all to me but a continuing payment authority on the card - an entirely different beast. If so the bank were perfectly in order to pay it.

[EDDIE51]

The bank can not pay a direct debit that does not exist !
How do you know it was a direct debit ? if you normally pay by card Virgin have probably used your card details to take the payment.

[pretty_snowdrop]

Banks don't set up or control direct debits they are set up by the company wanting the payment ( in your case virgin mobile). If this DD was set up in error as you suggest you will be covered by the direct debit guarentee which protects customer against incorrect payments. Contact Lloyds and they will reinburse you.

[factor-fiction]

^ However, pretty-snowdrop, I don't read it as being something that should be reimbursed as carolants hasn't said the payment was taken twice (once by phone payment and once by this 'DD')

[ABerrant]

It appears that a Pay Monthly contract cannot exist without a DD having been set up.

According to Section 6 of the T&Cs for the Virgin Mobile Pay Monthly Contract a DD must be set up at the start of the service and maintained throughout the life of the service before you are able to make optional card payments, so that if you default on a payment the process may drop back to the active DD.

[ABerrant]

Oops... missed off the relevant link

http://www.virginmobi...ce.footer.sm068#Terms and conditions of service - Pay Monthly Contract

[NoMercy]

If you never had a DD agreement, how did they get your account number and sort code?

[factor-fiction]

I think we just need carolants to clarify things now, such as was the monthly payment due/overdue

[EDDIE51]

NoMercy , good point, a card payment does not give your sort code and account number . Unless virgin had that it has to be a card payment.