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Direct debits and credit cards

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scott2208 | 17:06 Tue 11th Nov 2008 | Law
7 Answers
In March i set up a Direct debit with Abbey santander.

The direct debits failed and was not set up properly
for 3 months i did not make any payments .
they tried to charge for those 3 months Plus charges and interest.

based on their error i refused to pay the charges & interest for those 3 months. during the time where it was getting resolved.
without my consent the bank re-ssetup the direct debit and took the total amount owed.

Is this legal??

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A standing order gives you more control. With a direct debit they request, and get, what you have authorised. You could write a letter complaining about the extra charges to whoever made the error, as these are often refundable if you try to get them back.
After the DD failed the first month you should have paid via another method. After 2 months you must surely have noticed that you hadn't paid anything (is this for a credit card or loan or something?) but to let it go on for 3 months without making a payment it ridiculous.

You will probably have incurred late payment fees and extra interest and your credit file will now have late payments recorded on it.

And yes, it is legal for them to take the amount you owed once the DD was set up correctly.
Question Author
Checky chops...

This is for a Abbey Visa card

Im not that silly not to look at it ever month and I totally agree with you about monitoring these typesof things i Was working in China for 4 months on a golf course in the middle on no where. I did not have visabilty of the credit card / bank accounts during this peroid. ... i just was not sure if they can setup DD's with out consent at that time.

Thanks for the advise from all
I can't work this out. Who were you trying to pay by direct debit. What part do Abbey play- was your bank account with them? Who has charged you?
Anyway, with a DD the payee can change the amount
Being in another country, I'll let you off!!

Unfortunately DD's are usually set up for variable amounts so yes, they are still within their rights to debit you with goodness knows how much months later. Sorry.

They should still give you 14 days notice though.
I'm not clear who made the error with the direct debit. If it was your bank ask them to reimburse any charges from your credit card company. If the error was by the credit card company ask them to reimburse any resultant charges. If it was your error then there's probably nothing you can do- no harm in you asking though.

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Direct debits and credit cards

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