DIRECT DEBITS – How safe are they?
“Direct debits are unsafe, the
company can go into my bank account and take whatever they want!”
Is this really the case, once you
hand in a direct debit form to the company do they have total control over your
account?
Here’s what the financial
ombudsman says..
“Direct
debits are now a major part of daily life, with many people using them each
month to pay their household bills. The direct debit guarantee is a powerful
safeguard for customers ...............If you pay by direct debit, it is up to
the payee’s bank to call for the payment, but you will rightly look to your own
bank/building society to ensure the smooth running of any direct debits.
Mistakes and errors are covered by the direct debit
guarantee.
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. “
(Extract from ombudsman news issue 27)
At
Wyldecrest our staff abides by the Direct Debit guarantee. If you are on Direct
Debit and we make a mistake call your bank and ask for the money to be taken
back. Your bank will reclaim this money even without the company’s knowledge.
Any
Company that enters in to the Direct Debit Scheme enters in to the guarantee.
You have control don’t let anyone tell you otherwise.
