Hi all, I may sound totally niave and ignorant here now but for the first time today I have become aware of the existence of Originator Plus Direct Debit mandates and I'm actually quite astounded by them!
By way of brief background, I signed up to a direct debit with a company a while back. I have a dispute with them over the service that I have received and don't want to pay the full amount owed as I didn't receive all the services that I was meant to. I called the bank today to cancel the direct debit until I get the issue sorted with the company. However, the bank have told me that I signed an Originator Plus direct debit mandate and as such the bank can't cancel the direct debit! I have to write to the company to ask them to cancel the direct debit! So basically, I have to write to a company that I am in dispute with to say "please please don't take money from my account"! The chances of that going smoothly and taking immediate effect are slim. I have also heard today that this particular company look likely to be going out of business as they let all their staff go this morning. So you can imagine how much of a chance I would have of getting a service dispute sorted and any cash refunded.
I guess why I am amazed is that basically by signing one of these things you are in effect giving a company complete access to your bank account. What happens in the cases of unscrupulous companies who take a load of money and run off with it? Rare I'm sure but how is it even allowed to be possible! Or in cases like mine where there is a genuine dispute over service - I don't have the power to withhold my payment.
Is there anyone else that thinks this kind of thing shouldn't be allowed?? Is there anything we can do about it?
By way of brief background, I signed up to a direct debit with a company a while back. I have a dispute with them over the service that I have received and don't want to pay the full amount owed as I didn't receive all the services that I was meant to. I called the bank today to cancel the direct debit until I get the issue sorted with the company. However, the bank have told me that I signed an Originator Plus direct debit mandate and as such the bank can't cancel the direct debit! I have to write to the company to ask them to cancel the direct debit! So basically, I have to write to a company that I am in dispute with to say "please please don't take money from my account"! The chances of that going smoothly and taking immediate effect are slim. I have also heard today that this particular company look likely to be going out of business as they let all their staff go this morning. So you can imagine how much of a chance I would have of getting a service dispute sorted and any cash refunded.
I guess why I am amazed is that basically by signing one of these things you are in effect giving a company complete access to your bank account. What happens in the cases of unscrupulous companies who take a load of money and run off with it? Rare I'm sure but how is it even allowed to be possible! Or in cases like mine where there is a genuine dispute over service - I don't have the power to withhold my payment.
Is there anyone else that thinks this kind of thing shouldn't be allowed?? Is there anything we can do about it?