Cancelling direct debits

Mylo

Distinguished Member
I'm embarrassed to say that for many years I've been paying a debit that is not really needed.

When purchasing my flat I was mugged into taking out payment protection. 10 years down the line I've never needed it as I'm in a secure job.

Unable to work out who the hell the policy is now with, I decided to kill the direct debit.
My endowment has changed company about 4 times over the years but they always sent me supporting paperwork, company mergers are a pain in the :censored:

Will the PP company contact me when they next try to take a payment ?
 

Naqv

Well-known Member
"Will the PP company contact me when they next try to take a payment ?"

No, if it is direct debit. You just ring your bank to cancel it and then the PP company will definately contact you.:D
 
If you contact your bank and cancel the direct debit, then you will usually get a letter from the company when your bank inform them of the cancellation (taking that you haven't changed address from when you set DD up).

They usually send a form for setting a new DD up, them assuming that you have changed banks. This has happened to me, you will then have the details you need off the company to contact them and confirm cancellation of the policy.
 

Mylo

Distinguished Member
I killed it using online banking.

Phoning the bank would have meant remembering the access details :blush:

Internet dependant, who me :rotfl:
 

Steven

Senior Moderator
Sometimes you can go ahead and cancel (I did that with paypal)

If they are really money grubbing they will claim in the contract you signed, you have to give written notice (a certain money grabbing gym chain). My nice bank advisor stated that they can try that but you have control over direct debits in and out of your account, so they can go -

You get the picture :p
 

Jules

Distinguished Member
They'll probably contact you before that.

When your bank cancel the DD, they will automatically send a letter to the PP company informing them of the action taken.

Most companies will then simply send you a new DD instruction to sign in case you've changed banks.

However instructing your Bank to cancel the DD will not be interpreted as a request to cancel the policy with the PP company. You need to tell them yourself or it could get a bit messy.
 

Woodywizz

Distinguished Member
My nice bank advisor stated that they can try that but you have control over direct debits in and out of your account, so they can go -

You get the picture :p

That's wrong mate, with direct debits it is the originating company that has the power to claim whatever amount they so wish from your account. The customer only has control over standing orders which debit his/her account. This means that you can cancel a standing order with little repercussion, however cancel a direct debit and the originating company will send you a letter forthwith asking you to reinstate or to cancel the contract with them, cancelling the direct debit does not cancel the contract.

In this instance Myles, where payment protection is concerned, cancel the direct debit then ring the company and state that you no longer wish to have the policy. They will close the policy then from their end.

With regard to the payment protection - many people are now claiming back the premiums that they have paid - on what can be perceived to be mis-sold protection policies. Have a look here mate, and you may be able to claim back those premiums.
 

Mylo

Distinguished Member
The problem is I can't find any paperwork Matt :(

I'm pretty sure it was originally with Cornhill, however the DD is with someone completely different.

As soon as I receive a letter it will all be easy to sort out, hopefully :)
 

nod

Standard Member
Hi,

Something similar happened with me a few years back. I'd being paying PP for a couple of years after my mortgage had been paid off.:eek: Having eventually twigged I cancelled the direct debit (online) as I couldn't find much paperwork for it. I'd narrowed it down to Loyds/Black Horse but they've got divisions everywhere.

I quickly received a letter from them telling me they couldn't collect payments and I wasn't covered so I wrote back politely informing them I hadn't needed the cover and they sent me a cheque to cover the overpayments! :thumbsup:

Hope it works out okay for you.

Cheers,

Peter
 

Mylo

Distinguished Member
all sorted now :thumbsup:

I managed to work out who the parent company was and contacted them. The policy is now cancelled officially.
 

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