Question about direct debit indemnity claim

[Dahu371]

We were in dispute with a supplier over one particular dd payment they had taken. We raised a dd indemnity claim, the payment was returned to us, and the dispute resolved amicably. We're still using this supplier for other payments unrelated to the disputed one.

The supplier is now saying we need to set up a new dd mandate with them as the indemnity claim cancelled the mandate. The original is still showing as live on our bank account though, and the bank's customer services have told me that the supplier will still be able to take payments using it. The supplier is adamant that they can see it as cancelled at their end and we need a new one setting up.

So does a dd indemnity claim cancel the mandate, or is this just an issue with the supplier's system?

 

[urstop]

Looks like to be an issue with the supplier's system. DD indemnity claims do not cancel the mandate.

Since your supplier is asking for new dd, you can cancel the current mandate and set up a new mandate for this supplier.