Found 4th Mar 2009
Hi i hope someone can help me on this issue
i pay my bills via direct debit from the bank and my car insurance was due on Monday
There was money in myaccount to cover this bill
i got a letter stating that the direct debit had failed and now ive been charged £35 for this
the money was in my account why are they doing this is it just to get the charges from me
not only have i got to pay the bank £35 i have to pay my insurance £25 late fee as well as £35 for my inssurance
what can i go about this any help please


I would check the details on your direct debit. If it failed then something must have been entered incorrectly. The bank would pay a debit whether there was money in the account or not.

Contact the bank and ask to deal directly with the manager.
They will clear this up for you and sort it all out.
Last time it happened to me our manager credited my account with lost monies from the company that had billed me for the direct debit also. :thumbsup:

Were the funds in your bank account cleared funds? ie had you paid a cheque in the day before? Those funds although showing on your bank account would not have been cleared - unless you have an agreement with your bank - money cannot be taken against uncleared funds and the bank would have rejected the direct debit.
Have you spent any money on your debit card attached to the account? If you had the amount would have been authorised by the bank and those funds would not have been available in your account even though they were still showing in your account. The debit takes a couple of days to come through and show on your balance!
I hope that helps!

If its the first time, you can try to contact the bacnk and ask a refund

these charges are on dispute right now and you can start to recalim them back. But to make your effort worth while, reclaim all past charges for the past
heres a guide for a start…ges

Don't pay it. Dig your heels in on this one. What you should do is get a copy of last months statement from your bank as proof there was money there. Phone your bank and have a go at them for not honouring your direct debit. Then phone your insurance company and tell them to ram their fees and say it was your banks fault. It's one of them things where they hope you don't complain.

First of all you need to look at your bank - I am not saying you are wrong - but just confirm that there actualloy WAS the funds in there to clear the DR.

Secondly, you need to ascretainif this is the FIRST payment to the Insurance or not.

If it isn't that is better for you - as it proves the DR detailsare correct - if it IS again you need to check that the instruction given to the Banks / Insurance had the correct details on it - i.e Bank A/c No. Sort Code, and so on...

Assumiong that is OK, you should then contact your Baranch or Bank and tell them that THEY OR the Insurance Company has made a mistake - the IS a Banking Ombudsman that you can go to if this doesn't get settled by the way - but ultimately what you should be highlighting to your bank is that you are a long serving loyal customer of good repute, and any 'error' has not is is not down to any deliberate negligence on your behalf - therefore these charges should be waived.

If however, they refuse to waive the charges, in all honesty as soon as you start to mention switching Bank accounts, and not just youm but your partner, your children, your business, your loans, your mortgage your.... Basically everything that you and your connections have got with the Bank - the Bank will see your "Lifetime Wealth Potential" and l;ook favourably uponthis and of course waive the charges.

This doesn't ALWAYS happen mind you if (say) you are a freequent late payer - but if you have DD instructionsset up - you sould be fine. So step no. 1 is COMPLAIN!

An do it NOW!

But research it first.

Good luck.

I agree with crd67, was there uncleared funds in your account? When companies claim a direct debit it is all automated so if there were cleared and sufficient funds in your account then it would go through without any problems and no "human" would be any the wiser, it is only if there are insufficient funds that it would be flagged up and returned.

If you pay a cheque into your account it takes 4 working days to clear, so if you paid it in on a Monday you could draw against it on the Friday, Tuesday would be the next Monday etc etc. A lot of people just see that there is a credit balance in their account and don't look whether it's cleared or not. Payments can't be agreed against uncleared balances as this would then cause a problem if the cheque you paid in was returned.

Alternatively, as said before, you may have a few debit payments like switch that were due to go out but more like to be an uncleared cheque, as it's all automated it's pretty likely that there will be a reasonable and true explanation for it I'm afraid, even though it's a pain in the bum to you.

If unsure, just ring the bank and ask them why it was returned, they'll have the reason in front of them.

Just a quick point,
Was the money there to cover the direct debit at the close of business the day before as I know some banks can return payments if you pay money in the same day to cover it. If this is not the case your best ringing your bank to find out why its failed and they will let you know.
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