unwanted overdraft

[Snowblaze]

Hi I have a friend who had an account with a bank, paid off a €5,000 loan and clear the account and believed he closed the account. About a year later the bank sent him a statement showing that he owed €100 due to a Direct Debit been debited on his account. He had actually forgotten he had a DD set up but didn't have an over draft. Is it legal for the bank to have paid the DD and charged the amount to my friends account. My friend believed he had closed the account but unfortunately doesn't have any documentation to back up this. Any advice would be helpful thanks.

 

[emeralds]

What led him to believe he had closed the account? Anytime I have closed an account I have got a closing statement within a few days.

 

[Snowblaze]

To be honest, he's not sure what documentation he got at the time. He was up to his eyes buying a business and a house at the time and just couldn't remember a year down the line.

 

[boe]

Just contact the bank and tell them you don't want the overdraft facility and to close the account.
Previously, I had an overdraft charge applied to my account but told them I no longer wanted the facility and to remove the charge from my account which they did. The difference in my case is that I was maintaining the account.

 

[emeralds]

I don't think he has a leg to stand on to be honest. He had a responsibility to manage his account.

 

[Snowblaze]

I understand what your saying emeralds but if there was no money in the account should the bank have paid the standing order. ( sorry I said it was a dd but it was a standing order)

 

[44brendan]

Unfortunately your friend is legally liable for this charge as he did authorise the DD set-up and the Bank honoured the payment. the fact that they allowed the account to overdraw is not relevant to the liability. Given the low amount the Bank may write a few letters and ultimately write-off the balance. But in farness he did get the benefit of the Bank paying his DD for him and should re-imburse them.