Bank Loan closure - extra debit taken out

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podgerodge

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Closed a bank loan account in December - got final statement showing final deduction and zero balance. Direct debit taken out again in January - is it up to Bank of Ireland to stop debits when I've cleared a loan or is it my responsibility to tell my Bank to stop the direct debits ?

Previously with any loan the debits stopped automatically.
 
I think that you are supposed to inform both the bank and the third party who draws down the money when you cancel a DD. That's the way I always do it anyway. If the account was closed and the third party not informed then they are most likely going to try and hit the account for the money again as normal. Looks like the account is kept on hold even after being closed in case this happens. Did the third party actually get the money leaving the closed account with a negative balance on an overdraft or something like that - an odd sort of situation!?
 
As it is a loan, I would expect the bank to stop taking payments when it is repaid in full, without notice from the borrower. But if you are borrowing from a third party (i.e. other than your own bank), I would advise to send notice to both to be on the safe side.

Either way, it looks like you are owned money.
 
Sorry - I misread the original query and assumed that it was a current account being closed on which DDs to a third party had been set up.
 
Thanks. My account is with AIB. Car loan with Bank of Ireland. They sent me the closing statement in December so I thought it was their responsibility to stop taking money from me. I rang them and got a half arsed "oh sorry about that, your money is probably in a suspense account and when they figure it out they will refund you" - I'm ok in that I have no immediate need for the funds (Eur420) but would be seriously p'd off if I was short.

Of course I only have their word for it that I would have been refunded had I not noticed.
 
Tell them you expect compensation while your money is in suspense. Tell them you will give them 5 days to find it, otherwise you will call IFSRA or the FSO.

BoI kept my money in suspense for an entire year, and tried to fob me off.
 
I had a loan with BOI last year & it was repaid by standing order not by direct debit, which is the opposite of usual situation. But in any case, it is the account-holder's responsibility to cancel a standing order as it is you giving written instruction to your bank to pay x money to x account on x date. Was it def. a direct debit?
 
I would have to check the papers - 99% sure it was a direct debit. I had a previous loan with BOI and when I cleared it the debits stopped automatically. It seems to me that if BOI had their act together they would not have taken the extra payment out.

CCOVICH, the idea of ringing IFSRA occurred to me, if only because this sort of thing, if it happens a lot, could be happening to customers who have a lot of transactions on their accounts and may not notice an extra debit.
 
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