direct debit taken out early. bank charges. grr Watch

woofums
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#1
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hi

so i was just in my internet banking, where a direct debit was taken out 1 week early from my account. I had also been given a bank charge because i didnt have the funds in my bank because i was going to transfer money in time for the supposed take out day.

so will i be able to retrieve back the bank charge? because technically it wasnt meant to have come out of my bank until at least friday 11th. but will i have to pay the bank charge as the bank have nothing to do with the direct debit?
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DannyOwens
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I work for a high street bank and the chances are your bank will not refund you the charge as they have done nothing wrong. (The banks do not set the date they are taken, its the companies job). So, you need to get in contact with the company who took the payment early, get them to refund you the charges... Hope that helps.
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snu
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(Original post by DannyOwens)
I work for a high street bank and the chances are your bank will not refund you the charge as they have done nothing wrong. (The banks do not set the date they are taken, its the companies job). So, you need to get in contact with the company who took the payment early, get them to refund you the charges... Hope that helps.
I believe under the terms of the Direct Debit Guarantee, you should be able to get the charges back directly from your bank.
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DannyOwens
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it's debatable. I work in a bank and we can't refund charges based on customers' saying "oh such a firm took it a week early" coz everyone would do it regardless of it being true or not. The easiest way is to contact the firm that cocked up...
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snu
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(Original post by DannyOwens)
it's debatable.
No, it isn't.

http://www.financial-ombudsman.org.u...-guarantee.htm
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DannyOwens
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The direct debit guarantee applies to all banks and building societies taking part in the direct debit scheme. It says that:
If there is a change in the amount to be paid or the payment date, the person receiving the payment (the originator) must notify the customer in advance.
If the originator or the bank/building society makes an error, the customer is guaranteed a full and immediate refund of the amount paid.
Customers can cancel a direct debit at any time by writing to their bank or building society.

From the Ombudsman. It states that the originator must inform the customer in advance... it only says the bank must refund the charges if they screw up, a changed date is not the banks fault!!
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snu
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(Original post by DannyOwens)
From the Ombudsman. It states that the originator must inform the customer in advance... it only says the bank must refund the charges if they screw up, a changed date is not the banks fault!!
I'm sorry, but you have completely missed the point of the DD guarantee.

You are guaranteed a full and immediate refund on request from your bank, reinstating your account into the state it would have been had the debit not been taken (thus negating any overdraft charges etc), regardless of whether it was the originators fault or not.

It is not for the bank to speculate as to who is at fault. Once the DD has been reversed, it is up to the originator to arrange alternative payment with the customer. Of course, if the reversal of the transaction is without basis, the originator will probably be within their rights to impose late payment fees, report non-payment to CRAs, etc.
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DannyOwens
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If the above was the case, the Charges Case would have never gone to court as the magistrates would have enforced the DD Guarantee...but it went to court...
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nearlyheadlessian
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(Original post by DannyOwens)
If the above was the case, the Charges Case would have never gone to court as the magistrates would have enforced the DD Guarantee...but it went to court...
But that's an entirely different matter. For someone who claims to work in a bank you have a very weak grasp of how a DD works.
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snu
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(Original post by DannyOwens)
If the above was the case, the Charges Case would have never gone to court as the magistrates would have enforced the DD Guarantee...but it went to court...
I'm sorry, what? The DD guarantee does not say that bank charges are illegal. So I don't really know what you're talking about.
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Orthala
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Can I just say...

If the company who took the money gave you 10 days or more notice of how much money they were going to take then its no-ones fault and you are unlikely to get money back.

Well this is what I have heard from someone who was also in the same position from their credit card company.
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DannyOwens
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(Original post by Orthala)
Can I just say...

If the company who took the money gave you 10 days or more notice of how much money they were going to take then its no-ones fault and you are unlikely to get money back.
THANKYOU!! Back to my original point... IT'S DEBATABLE!

I'm a bit bored of this now, i know what the legal standpoint is and i know what we are trained to do, so i'm going to work now...to do my job and not watch the forums all day.
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King4eva
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#13
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this happened to me this week i just called my bank and told then that i refuse to pay the charges and the i was going to move to another bank in the end they refunded me out of "good will" i am still angry because i have already paid up to 90 pounds of charges which i believe is ridiculous.
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gyrase
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Yes, u will have to pay the bank charge, Banks work on the basis of investing money in markets. If your account is in the negative and the money has come from the bank to pay your direct debit, the bank has lost some money which they could have used in their investment hence you are ordered to pay the outstanding loss.
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snu
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(Original post by DannyOwens)
THANKYOU!! Back to my original point... IT'S DEBATABLE!
No, it isn't. I'd love to know what bank you work for, so I can take out an account then take you to the FOS.
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20083
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(Original post by snu)
No, it isn't. I'd love to know what bank you work for, so I can take out an account then take you to the FOS.
I just hope it isn't my bank. He clearly doesn't know his job.
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DannyOwens
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I know my job perfectly well thankyou very much, i'm not stating the bank for obvious reasons. But i spoke to my manager today who completely agreed with me... put it this way:

Why would the bank go to all the trouble of charging customers if under the DD guarantee, EVERY consumer is entitled to a full refund.
I think you are awfully confused as to the state of the financial market and believe what you read..and even that you cant do properly. The links that were provided to the DD guarantee state that the bank has to refund if they screw up, not if the originator does!!
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20083
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(Original post by DannyOwens)
Why would the bank go to all the trouble of charging customers if under the DD guarantee, EVERY consumer is entitled to a full refund.
Who said that like?
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DannyOwens
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#19
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(Original post by snu)
I'm sorry, but you have completely missed the point of the DD guarantee.

You are guaranteed a full and immediate refund on request from your bank, reinstating your account into the state it would have been had the debit not been taken (thus negating any overdraft charges etc), regardless of whether it was the originators fault or not.

It is not for the bank to speculate as to who is at fault. Once the DD has been reversed, it is up to the originator to arrange alternative payment with the customer. Of course, if the reversal of the transaction is without basis, the originator will probably be within their rights to impose late payment fees, report non-payment to CRAs, etc.
SNU did...
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DannyOwens
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and that is where the entire debate has sprung from...
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