Bacs System

[Segilla]

Can someone please offer any reason why a DD payment failed to pass through the BACS system. I changed my bank and all but one DD subsequently was successfully paid.

The intended payee (IP) has charged me £14.40 for the failed transaction saying that that is the charge levied on them by BACS.

I can accept that there may be a hiccup but the next monthly payment also failed, resulting in another £14.40 penalty.
I am still waiting for my bank to tell me what is going wrong and the IP washes its hands of any responsibility.

Is the £14.40 the correct BACS charge or is the IP being less than frank?

Meantime I'm paying by cheque but it may well be that I shall have to pay by SO.

Any advice / comments welcome. TKS
,

[woofgang]

did you do it through the switching service?
http://www.which.co.uk/money/bank-accounts/guides/switching-your-bank-account/how-to-switch-your-bank-account-/

if you did then I think the banks are responsible for losses and mistakes and not you

[Segilla]

Yes, the change was done via the switching service and bank have accepted responsibility for the payments of 2 x £14.40.

But it's the future that is now my concern..

[woofgang]

well if they keep *** up, they will keep paying up...I bet they sort it PDQ

[wiltsman]

If we're talking about Direct Debits, and the organisation collecting the money from your account has been informed of your change of bank, then they are at fault! It sounds as though they have been trying to collect it from your old bank.

As you went through the switching system though, then your current bank should sort this problem quickly - it should not have happened twice. Go into your bank and have a face to face conversation with them, as long as there was sufficient funds in your account then they must re-imburse you the £28.80.

It would also be worthwhile phoning the organisation collecting your money to ensure they actually do have your new bank sort code and account number.

I'm afraid I can't say whether the BACS charge is correct or not though.

If you went through all the steps listed in 'woofgang's link, and you had funds in place then I would say your new bank is at fault.

Make sure you are re-imbursed the £28.80 they stole from you.

[wiltsman]

Just re-read my answer above, and I gave the impression that the organisation collecting the Direct Debit was at fault, but as I pointed out in my fifth paragraph, if you went through the bank's switching service then, yes, the bank would be at fault.

It could be that the bank failed to inform that organisation of your changeover.

[Peter Pedant]

am I right in thinking so far no one has answered the q
//Is the £14.40 the correct BACS charge or is the IP being less than frank? //

I would like to know the answer as well.

AND about something else....
There has recently been a case where the Court of Appeal decided that BACS transfers were only on numbers and not on the name of the payee.
Get the numbers wrong and you are screwed EVEN if you specify the name of the payee
http://blogs.lexisnexis.co.uk/fs/paying-the-wrong-chap-is-that-a-2-or-a-3/

[wiltsman]

I couldn't answer Peter Pedant's answer above about a BACS charge for a failed Direct Debit payment, because I didn't think there should be any charge to the customer in these circumstances.

But even if there was a charge involved, I wouldn't know what that should be, as I think each bank seem to decide their own BACS charges.

Segilla - I think an urgent visit to your bank is in order. Paying by cheque should only be a short term answer, because if you do pay by cheque, make sure it's sent in good time, so that it can be cashed and cleared by the monthly deadline date that it's due. Also, be wary, some companies will only deal with Direct Debit transactions, and if try to pay by other means you could find there is an additional handling charge.










Segilla - I think a

[factor-fiction]

I wouldn't pay by cheque or SO- if the bank accepts it's their problem and they keep reimbursing you then I'd leave them to sort it out