Issues with a Direct Debit
If an error is made in the payment of your Direct Debit, you should contact your bank or building society who are responsible for giving you a full and immediate refund - even if the original error was made by the organisation collecting the payment.
* The Guarantee covers Direct Debit payments. It cannot be used to address contractual disputes between you and the billing organisation.
In some cases your bank or building society may require further information to ascertain the nature of the error and confirm that one has indeed occurred. Any clarifications will help your bank or building society in subsequent dialogue it has with the collecting organisation. Once an error in the payment of a Direct Debit has been established, you will be refunded immediately.
As Direct Debit is purely a method of payment, which does not affect any underlying contract that may exist, the organisation may contact you to resolve any outstanding issue.
It's very unlikely that this will ever occur because organisations using the Direct Debit Scheme go through a careful vetting process before they're authorised, and are closely monitored by the banking industry. But if money were to be collected from your account fraudulently you'd be protected by the Direct Debit Guarantee, and would be entitled to an immediate refund from your bank or building society.
We have developed a library of useful letter templates to aid your correspondence with your bank or building society and the organisation with which you have a Direct Debit.