An arranged a direct debit of £10.00 per month. On one month in summer I reached my overdraft limit..?
Why is the contracted company continuing to make payments when I have put a stop on it , although I have requested it to stop, and why are the bank allowed to keep fining me £10 after my request to stop.
Answer:
The charges that your bank have taken are currently under investigation by the office of fair trading, information on Which can be found here.
https://www.which.co.uk/reports_and_camp.
This is the usual course of events.annoying isn't it! if you sign a contract, even on line for 12moths then it is legally binding and if there are not enough funds in your account to cover the direct debit, then the bank is allowed to charge you. I did hear a debate on the radio a few months ago that said, if you write to your bank DEMANDING that any bank charge be paid back to you or you will close the account, then they usually do, said the caller, but i ha vent tried this myself.
Have you canceled the DD with the bank? if not and the company are holding you to the contract they can continue to claim for the funds and each time they do and you have no money the bank will automatically charge you. Call the bank and ask them to cancell the DD but you will have to let the company know you have done this so you can arrange with them how to pay the rest of the contract if you have to.
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