www.iva.co.uk

I hope someone could offer some advice. I changed my current account when I'd made my decision to go for an IVA which was accepted in July. However, I didn't need the new account and never used it. I got a letter the other week stating that I was overdrawn by £9.44. When I queried this with the bank they said a direct debit had been paid. I have never used the account.

I then checked on line and saw that there were 3 direct debits set up on the account. I have cancelled them all. But the one that had paid £9.44 out was to Legal & General and the bank said they couldn't do anything about it.

I rang L&G and explained I had never had any accounts with them and they agreed that the DD reference didn't belong to me.

L&G have said my bank should refund under the DD guarantee, but my bank say that they can't because the DD is not mine! I am in a position where I have now been charged £30 by my bank for being overdrawn by £9.44 and had put the money in the account to save going overdrawn for another month. The thing is I am also worried about the IVA, knowing that I cannot be overdrawn at the bank and I am almost £40 out of pocket.

Has anyone got any ideas how I can resolve this as I am going round in circles?

I would take it up firstly with the bank as it is their responsibility to refund under the D/D guarantee. Then you should take it up with L&G and get them to refund the bank charges including any interest that is charged to you because of their error. They will refund because it's their fault and they wouldn't want it to come out.

Hi suzanne,

Well obviously this is not your fault, so I don't think it will affect your IVA.

I am really not sure of the answer to this, but I would say that L&G have taken the money out, so they should at least refund the amounts they have taken out as they are in their accounts. As for the charges, I presume the bank should refund those.

I am sure that someone else on here probably has more knowledge of the subject than me.

I would be round the bank first thing in the morning though to sort it out face to face. Usually gets something done quicker than talking to someone on the phone.

Hey Suzanne, I wouldn't worry about your IVA, it's not your fault. I was under the impression that the bank has to refund this under the Direct Debit Guarantee. I would maybe go into the branch and talk to someone face to face. L&G will HAVE to pay the charges. Hope you get it sorted. X

Thanks guys, I'll go in the bank tomorrow.

[:D][:D][:D]

Only managed a tenner last night (works syndicate so worth even less!), so I won't be opening one of those accounts anytime soon!

[:D][:D] I won the euromillions on Friday, got one number and two stars, so I'm hoping I got the jackpot![;)]

It won't be the debt collectors knocking on your door if that is the case Viki - it'll be me with begging bowl![:D]

Hold that thought and I'll let you know tomorrow how much I've ACTUALLY won![:D]

I'll put me coat back on the peg for now then![:D]

Brilliant Ray!!

Suzanne
Your bank MUST refund this DD under the DD guarantee.full stop.
Do not get fobbed off
I have always found banks a little reluctant to act on this guarantee,in my experience they always try to refer you to the company that have taken the payment.
As I have said you are completely within your rights and your bank must refund this.
Threaten the Banking Ombudsman if you have too
Please let this forum know how you get on

Just to update you all. My bank A&L will not refund it. They are charging me £5 per day for being overdrawn, the charges are now up to £65 when I last looked. So I have put some money in to cover the debit but I don't know what I am going to do on the 25th when the take the charges out! L&G have said they will refund it, but that was last Tuesday and we are now a week on again. I have been in the bank again and they have told me that I have to make a complaint, so I am now in the "Complaint Procedure" which could take anything up to 8 weeks!! Happy Days!!! NOT