So I recently switched my main banking to Monzo and was very impressed initially.
Unfortunately since my switch I’ve had 2 instances where a direct debit which I cancelled on the Monzo app has subsequently still come out.
With the first one I was able to do a direct debit indemnity quite easily but the second one I’m just going around in circles and the agent was trying to get me to contact the company myself for a refund when it was Monzo’s error.
The second DD is only for £6 so I’m not overly bothered for getting it back. What is concerning me is the fact that twice within a short period of time I have had a direct debit paid from my account which was cancelled.
Both payments didn’t show on my upcoming payments and I didn’t get a notification they had been made like my other direct debits do when they go out, I only realised when I saw my statement.
If an error is made in the payment of your Direct Debit, by the organisation or your bank or building society, you are entitled to a full and immediate refund of the amount paid from your bank or building society
– Direct Debit Guarantee
Most legacy banks need about 1 days notice, but the Direct Debit scheme itself states that banks need to confirm this notice period and if Monzo hasn’t then it is implied it is instant (and should be imho) when cancelled in the app.
Which? state:
If you’re wrongly informed by your bank that you should pursue the company in question for a full refund, you should remind your bank that in accordance with the Direct Debit Guarantee, it is under an obligation to guarantee a full and immediate refund if the beneficiary makes an error with your direct debit.
If you’re given incorrect advice by your bank and this delays matters, then you should make a formal complaint to your bank, seeking compensation for its poor handling of the matter.
Therefore I would submit a formal complaint, specifically stating your rights under the Direct Debit Guarantee. I can’t see why Monzo is holding out over £6. If you are wrong then they can claim a refund from you under the scheme rules too. Hopefully, @simonb or other COps can look into it.
The direct debit rules are actually very clear. immediate in the rules means by the end of the next business day.
If they refuse to refund immediately (ie by the end of the next working day) they are in breach of the rules, its not down to you to chase the company, your bank refunds the payment and recalls it from the company.
The bank has a recall feature for direct debits. The company can reclaim it if they was due the direct debit, however your bank can’t refuse to recall the payment.
Any idea what the notice period for cancellation is? I know Nationwide accept changes up until 4pm the day before payment but I don’t know about anyone else (or the actual rules).
Nothing to see here, move along now (which to say, I got it all wrong and clearly sounds had my coffee before posting in the morning in future).
They wouldn’t get transferred over like DDs, true. But when a company claims money via a CPA from the old bank, it would get forwarded to the new bank.
My understanding is that CPAs need to be cancelled with the company taking the payment, as instructing your bank to take it off won’t work if the company carries on claiming.
It’s correct that the bank are required to cancel it but whether any can do that by any means other than simply blocking the merchant, I haven’t heard.
I asked Monzo to cancel a CPA a few months ago but was told the only thing they can do is issue a new card and cancel the card which is authorised for the CPA. It would be nice if there was a better system for CPA’s
This isn’t correct, as a CPA is linked to a debit/credit card. If you have had a new card issued, because for example you lost the old one (but same bank), your CPA can be forwarded to your new card. CPAs cannot follow you to new accounts with different providers.
Merchant blocks can be processed but they often cost the bank money to do so, which is possibly why Monzo didn’t do it. (Equally, the cOP may not have known you can block merchants and thereby prevent the CPA going through).
