Unauthorised Bank Withdrawals

Discussion in 'Cashflow forum' started by StewartNicol, Aug 21, 2012.

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  1. StewartNicol

    StewartNicol UKBF Newcomer Free Member

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    I had a car insurance policy which I cancelled in May 2012. The company has today, 21st August, used my bank account details to withdraw £90.70 without informing me, causing my account to overdraw and a direct debit to be withheld. My bank have refunded the money and were very supportive. I have had to cancel my debit card as a result.
    Any advice on legal action?
    Posted: Aug 21, 2012 By: StewartNicol Member since: Aug 21, 2012
  2. openmind

    openmind UKBF Big Shot Full Member - Verified Business

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    You are kidding right? Legal action for what? Distress at going overdrawn? Cutting yourself on the envelope the letter was in??

    You got your money back, what more do you want?
    Posted: Aug 21, 2012 By: openmind Member since: Sep 6, 2005
  3. businessfunding

    businessfunding Guest

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    This was an opportunity for a positive, upbeat thread about professional behaviour from a bank.

    Or a petty ambulance-chasing claim:redface: Take your choice
    Posted: Aug 21, 2012 By: businessfunding Member since: Jan 1, 1970
  4. Eagle

    Eagle UKBF Legend Free Member

    5,382 598
    Did you inform them that you'd cancelled the Policy and/or Direct Debit? I understand they're well within their rights to reinstate the DD if you don't notify officially. Not sure about stealing your money though...
    Posted: Aug 21, 2012 By: Eagle Member since: Oct 3, 2004
  5. cts1975

    cts1975 UKBF Regular Full Member

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    If you cancel the insurance do you still not need to make the payments anyway?
    Assuming the payments totalled the policy plus a little interest over the agreed term?
    Posted: Aug 21, 2012 By: cts1975 Member since: Apr 29, 2012
  6. themanwiththeplan

    themanwiththeplan UKBF Newcomer Free Member

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    I think this all the time. But the thing is, when it happens it can be pretty scary. There are not clearly outlined laws stating what the rights of companies are. I know that its all in the small print, but who ever reads the small print!!
    Posted: Sep 5, 2012 By: themanwiththeplan Member since: Sep 5, 2012
  7. mcjohn

    mcjohn Banned

    44 2
    Have you informed the insurance company? If your policy has been canceled then you don't need to make payments. Contact your insurance company and make sure what's the matter.
    Last edited: Nov 20, 2012
    Posted: Nov 20, 2012 By: mcjohn Member since: May 24, 2012
  8. OldWelshGuy

    OldWelshGuy UKBF Legend Staff Member

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    The problem is that a company can set up a direct debit without you knowing. I had terrible trouble with one company who continually set up a direct debit and took money from my account. They were using my bank details for someone els's payments. and of course, when i tried to contact them, they refuised to talk to me because I was not the client.

    In the end I issued an invoice to them for my time (after writing to them to say I would do so), and then went after them via their data officer. I complained that they had breached my privacy by passing pon my bank details to the other customer. I also told him that unless they settled, I would make a subject access request and make a formal complaint and sue for breach of data protection.

    I got a nice letter, with the invoice paid, and £300 offer to settle.

    they didn't take any money afterwards.

    The point is though that at this point in time, the banks don't notify you when a direct debit is set up on your account. I now login regularly to check if there are any new ones.
    Posted: Nov 20, 2012 By: OldWelshGuy Member since: Jun 12, 2008
  9. internetspaceships

    internetspaceships Banned Full Member

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    Posted: Nov 20, 2012 By: internetspaceships Member since: Sep 7, 2009
  10. David Griffiths

    David Griffiths UKBF Legend Full Member - Verified Business

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    The OP hasn't been on here since the day that the question was posted. The post count is a bit of clue.
    Posted: Nov 20, 2012 By: David Griffiths Member since: Jun 21, 2008
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