Direct Debit

[FuzzBallMushroomP]

DDs nursery have set up a direct debit and have taken the wrong amount from us.

When I applied I did fill in the mandate with her forms but they never set it up and I've been paying fees via bank transfer ever since.

I'm concerned because they often send us incorrect invoices for hundreds more than we owe, although this is the first time they've actually taken anything.

If I cancel the direct debit can they just reinstate it since they clearly still have our details?

Have you spoken to them about it?

Yeah they're going to refund the money and luckily it wasn't a huge amount this time but I'm just worried about the times when it's 100s more which would leave us short while trying to get it sorted.
I'm hoping that cancelling the direct debit will sort it but unsure if it's that simple.

If you contact your bank you can claim an immediate refund called a direct debit indemnity. It's under the direct debit guarantee. Hth

The terms of the direct debit guarantee mean that you are entitled to a full and immediate refund if they take the wrong amount, so talk to your bank about this.

www.directdebit.co.uk/DirectDebitExplained/pages/directdebitguarantee.aspx

But obviously yes, talk to the nursery about their incorrect invoices to see how they can sort it out. It's not difficult to bill you correctly and take the agreed payment on the agreed date.

If you know how much you should be paying and when, can you pay them by standing order instead? Puts you in control.

Thanks for all the information.

It looks like they'd technically need our permission to reinstate a direct debit but surely if they have our details still, which they clearly do, they could set it up again?

The incorrect invoices were just a minor inconvenience before, now I'm worried how much money theyll take from us.

Cancel the direct debit and tell them you’ve cancelled it and will just be paying on receipt of an invoice from now on.

Cancel the direct debit. (They can't reinstate it once cancelled) and tell them you'll do a BACS transfer upon receipt of their invoice.

If they ask why or have an issue with this say it's because they took the wrong amount. It serves them right for having crappy admin.

We’ve had two refunds recently through the direct debit guarantee scheme. The first time the company randomly took five times what they were due to take! The second company didn’t apply a £40 credit I was due. Both times it was all sorted in a 5 minute phone call.

It's looking more like I'm going to end up calling the bank.

Obviously we owed them some money but not the amount they've taken.

I was looking through our invoices and they even sent us an incorrect one before she'd actually started . No idea why there's been a mistake on all but one invoice.

Why not set up a standing order for the correct amount every month?

You mean phone the bank to cancel the direct debit?
I’d do that then go in and talk to them about why the invoices are consistently wrong. Tell them that as you can’t afford to be paying £100’s a month that you don’t owe then you’ll pay by BACs on receipt of a correct invoice. That should be the end of the matter with no fuss or drama.

The absolutely can reinstate the DD. Tell your bank to block it once they have cancelled it and processed the indemnity - they then can’t reinstate it without you having to complete a new DD mandate.

I’d pay by standing order from now on. You’re completely in control of those.

I would tell the nursery that if they cannot get the amount right then you will no longer be paying by direct debit.

Work out how much you normally pay them every month. Cancel the direct debit, making clear to your bank that it is not to be honoured again. Then set up a monthly standing order for the correct amount instead.

You are much more in control of a standing order. You set the amount and the dates yourself and can do it online if you want to. You are not so reliant on other people getting it right all of the time.