Cancelled direct debit still being used

[cymtriks]

The Mother in Law was paying credit card insurance. She no longer has a credit card so we asked if the insurance could be cancelled. This wasn't possible with filling in a form (which the MIL can't do) or sending in a letter containing a Power of attorney (which costs us money and we only have a few which all need to be signed by the MILs solicitor based 120 miles away) so we cancelled the direct debit.

Recently another payment has been made by the bank.

The Mrs phoned up the insurance company and they said that if a direct debit was cancelled they would simply try to take the money using the details they had on file.

Surely this can't be right?

• The bank was instructed to cancel this direct debit
• The insurance company knew this and then actively used their data to work round it

Is the bank at fault? Is it actually normal practice to try to overturn a cancelled DD, which you'd think was a pretty strong hint that we didn't want their service anymore?

[Lost_BMW]

This has happened to me a few of times, once BT, once Sky and once an insurance outfit.

The bank's explanation was that they represent and set up a new mandate, a clue that tipped me off being the appearance of an "Initial Payment" figure (for the old/cancelled amounts) on my statement. Not good!

[randlemarcus]

http://www.thesmartwaytopay.co.uk/directdebitexpla...

Ask your bank for the money back - the above is fairly explicit.

[Crafty_]

Sounds like they are processing the DD, find its rejected and then creating a new instruction to set it up again.

Draft a letter that cancels the insurance, get MIL to sign it and send it registered post or whatever, show the bank the letter and proof of receipt and expressly state that no direct debits should be set up on the account ?

[Deva Link]

cymtriks said:

... a Power of attorney (which costs us money and we only have a few which all need to be signed by the MILs solicitor based 120 miles away)

I made colour photocopies and nobody ever queried it. In fact I think everyone we sent one too sent it back as they thought it was an original.

[fandango_c]

randlemarcus said:

http://www.thesmartwaytopay.co.uk/directdebitexpla...

Ask your bank for the money back - the above is fairly explicit.

1) Read this link
2) Phone up bank
3) Mention direct debit guarantee
4) Ask for money back

[Funk]

Given that the credit card company are being an arse, I'd stick a claim in for PPI refund as well.

I think I recall you mentioned that she wasn't made aware that she didn't need to have it in order to take the card out initially, was she..?