Direct Debit refund shambles

[#1]

I just went through this with BT. They originally wanted to credit my account the next billing date which was 3 months down the line. After a couple of emails were I specifically informed them they had not got my authorisation to take this amount they phoned me to inform me that they will credit my bank account with the over payment. As BT gives nearly 2 weeks notice they had time to change the DD.

[#2]

You should  read this page on the BACS website. Here it clearly states the correct method of refund for an error made. It is up to the company then to claim the correct amount, as notified by DD. The company should not treat the incorrect claim as a default on payment, nor try to claim the money by other means, just because they hold the details of an alternative payment method.
[Edit: To make more sense]

[#3]

I thought the rationale of sending Advance notice of your Direct Debit payment emails was that mistakes could be rectified before the payment was taken. Why is this not the case with Plusnet?

[#4]

Hi Jameseh
Well at least some clarification of this issue has emerged.  I accept that some banks have not elected to fully use the Faster Payments System so PN cannot use it unless and until Barclays permit it for business customers.  I would hope that if/when they do so then PN will use that method.

Quote from: Jameseh

Regarding the refund process on Direct Debit payments, I've also learnt something new today.  We don't refund by Direct Debit, as that isn't technically possible.  It's a manual process.  Basically, all refunds for payments by Direct Debit go into a BACS refunds file which is manually signed off and processed once a week and then take 2-3 working days for the payment to reach the customer.  So it would potentially take up to 2 weeks for a refund to be received.

At least the points I made in my ticket have been vindicated.  Perhaps you will draw the attention of the CSC Analyst who made the first two replies to my ticket, to the fact that it is not technically possible for refunds of DD's to be made through the DD system.  Hopefully this will prevent him from making erroneous statements on this point in future.  Had I been aware of PN's procedure for refunds I would have (reluctantly) accepted a delay  instead of claiming from my bank under the DD Guarantee which will now cause problems in your accounts department.  As it was I was grossly mislead as to the time scale.

[#5]

I agree that the whole point of getting an email stating the amount of the direct debit - is for the customer to verify the amount and have done something about it by contacting PN - so the DD can be amended.
If that can't happen there must be a way for PN to quickly credit someones account so they are not in out of pocket by even 1 penny.
If PN make a mistake - then it is for them to take any additional cost.

[#6]

Hi Jameseh

Quote from: Jameseh

Hiya, I'm just spoken to one of our senior members of the finance team.  "Faster Payments" isn't something that we have control over.  It's controlled by the bank that you use and our bank (Barclays) do not offer this for their business customers.  He mentioned that they may offer it on personal accounts, but not business ones.

Looks as though your finance team member should take a kook at this - http://www.business.barclays.co.uk/BBB/A/Content/Files/34065_Faster_Payments_FACT_SHEET.pdf particularly Page 2 Direct Corporate Access

[#7]

Quote from: mal0z

...If that can't happen there must be a way for PN to quickly credit someones account so they are not in out of pocket by even 1 penny.

Technically they don't have to as the bank will do it for you as soon as you notify them of the incorrect payment. It is advisable to also notify Plusnet.

Quote from: mal0z

...If PN make a mistake - then it is for them to take any additional cost.

Agree and it is also up to them to claim the correct amount via DD as the customer as been refunded by the bank for the original claim. Plusnet should not penalise a customer if they make a claim in error so resulting in a delay of payment by the customer via DD.