unauthorized direct debit

[Alex]

my mobile phone company took money from my account that was in error and had nothing to do with my usual bill. the amount was for almost 70 euro. after making a complaint they have refunded the money as a credit on my bill. i find this unacceptable as i am finding it difficult to manage other bills due to being down 70 euro. all the credit will do is pay my mobile phone bills for the next few months but it shouldn't be that way at all. they had no business taking my money. i would like the money back by cheque. can i make them refund me this way or am i stuck with the credit? thanks.

 

[Brussels]

Go to your bank and tell them that the DD is unauthorised and ask them to refund you and claim the money back from the phone company.

 

[Crugers]

Go to your bank and tell them that the DD is unauthorised and ask them to refund you and claim the money back from the phone company.

Until last November it was probably, in theory, that straight forward.
Up to that point the IPSO DD rules stated:

A Direct Debit shall be considered to be unauthorised in the following circumstances only:

1. Payer has cancelled DDI with Originator
2. DDI cancelled by Paying Bank
3. Payer instructed the Paying Bank to refuse the Direct Debit payment.
4. No valid DDI held
5. Amount/Date of Direct Debit differs from DDI
6. Amount/Date of Direct Debit differs from Advance Notice
7. No Advance Notice received by Payer
8. No confirmation letter received by Payer

However since Nov 2011 the rules have changed and now the criteria reads

A Direct Debit shall be considered to be unauthorised in the following circumstances only:

1. Payer has cancelled DDI with Bank
2. No valid DDI held
3. DDI has expired (36 months)

Under the previous rules it more straightforward and simple to "prove" that a DD was unauthorised. That's not to say that getting your bank to repay the unauthorised debit was ever easy!
Now it is definitely less black and white... in favour of the bank(s).

From a consumer point of view it is a retrograde step and will convince more customers that DD's are NOT the way to go!

To the OP:
Yes it appears that the DD was unauthorised but I don't hold out much hope of you being able to convince your bank of that fact. If you can or if you have something from the mobile company admitting it was an unauthorised DD, then your bank, according to the DD rules, should reimburse you and then go themselves and get the funds back from the originator (the mobile company).

 

[Alex]

i did get a letter from the mobile phone company stating they took the money in error yes.

 

[Crugers]

i did get a letter from the mobile phone company stating they took the money in error yes.

Well then you could bring the letter to your bank and attempt to convince them that the DD shouldn't have been presented and shouldn't have been paid and therefore should be reversed!
Unfortunately, I would suspect that it isn't going to be easy!

The other tack is to "refuse" the credit from the mobile company and insist that the funds are remitted back to your bank account!
As originators they have a responsibility to adhere to the IPSO DD Rules...
Have a look at .

Terrible to say it but is it all worth it?