The Banking Industry Ombudsman website has some helpful information for canceling a direct debit which may be useful to newsagents who have had payments deducted for Bill Express equipment this week even though they had cancelled the direct debit authority with their bank.
If you have given a third party an authority to debit your account, that authority may be cancelled either by notice to the third party and/or by notice to the bank. This is reflected in clause 19 of the New Code of Banking Practice, which says that a bank will promptly process your instruction to cancel a direct debit request and will not direct or suggest that you should first raise any such request directly with the third party. The bank may suggest that you also contact the party and this is a prudent course to take to ensure that the authority is cancelled.
Newsagents who cancelled their direct debit authority and had money taken our for the Bill Express equipment this week ought to make representations to their bank about how this is a breach of the Code of Banking Practice.
If your bank refuses to refund the money they allowed to be deducted after you cancelled the direct debit authority, you should advise them you will make a complaint to Financial Ombudsman Service. Click here for details of how to register your dispute online.
Is it still the BE direct debit?
So now BE, ONQ and TBS are now bust, what leveraged does Mobius have on us?
The Foley vs Classique Coaches case mentioned in an earlier piece is very, very strong, and is quite similar to what we are all facing at the moment.
I actually remember reading parts of that case in Monash’s Law Library a few years back. It’s very moral.
I think Mobius should save everyone time and money and write our rentals of as a loss. Remember, we didn’t ruin the whole BE platform, BE did, Mobius should chase Mr Christiansen and his cronnies not all the honest newsagents that were at the front line for them for the past few years.
My bank still let the direct debit go through even after I sent them an email a few days prior again detailing the debit I wanted stopped. The bank claimed it was out of their control. I asked them to return the payment and they claimed that couldnt be done.
Simon it can be done. The bank has an obligation to you. I would make an appointment to see the manager. mark
I rang my bank yesterday (Westpac) asking that the three debits to my account be refunded as they did not have an authorisation from me for these transactions. I received an email today saying they “loaded a claim on the transactions on all three debits and this should be completed on the 8.8.08” Ill wait and see but they appear to be co-operating and even being helpful.
AS I WARNED PEOPLE ON THIS SITE LAST WEEK CLOSE YOUR BANK ACCOUNTS,CLOSE YOUR BANK ACCOUNTS AND START UP NEW ONES.” DING DONG THE WITCH IS NOT DEAD”-TO BORROW A QUOTE FROM JACK GIBSON….
THEY CAN STILL KEEP DOING IT-THEY JUST KEEP STARTING UP NEW COMPANIES AND YOU CAN ONLY STOP IT ONCE THE BANK SEES THE NEW COMPANY DIRECT DEBITS THE MONEY OUT!!!!
I posted this question elsewhere but it’s probably more appropriate here. Who do i actually have to name to the bank in regards to stopping the direct debits coming from my account, is it only CHP or is there any other names i have to give them? Silly me asked to put a stop on BXP debiting money from my account but obviously it was still taken out the other day as it was debited by CHP. Is there any action i could take to try get that money back?
Dean,
The details are on your bank statement on the same line as your DD.
You also need to go back to January’s Staement and block the BillExpress Details
Dean
The drawings done at the end of April and end of May were by Perpetual Nominees (on behalf of TBI who sent most of us a letter early April saying that they were changing the agent they used for collecting the rental payments).
Your bank can do a trace on the numeric codes (showing on your bank account next to the direct debits) to ascertain the name of the drawing party. We have stopped any direct debit authorities held by Perpetual Nominees, Bill Express and Dialtime and ANZ (Eftpos). Mobius has not yet done a drawing under their name from our bank account even though there is a copy of a direct debit authority held in our Bill Express documentation. The bank has no record of this authority in f/o Mobius imaged on our bank account file. This means that until Mobius attempt a drawing under their name, then the bank may be unable to input a stop on the unknown code.
We have not had any further rental drawings since we stopped the aforementioned authorities. To ensure that Mobius does not draw, we have moved all available funds,direct credits and authorised direct debits to a new business account (very painful exercise!!!) and are just awaiting the last few transactions before the old account is closed.
Cancel the direct debit in the name of the company in which you signed it originally.
I THINK ALL OF THIS IS DEPENDING ON WHICH BANK YOU ARE WITH AND HOW MUCH THEY CAN BE BOTHERD HELPING YOU . MY BANK WAS TO HAPPY TO HELP OUT . IT TOOK A COUPLE OF MINUTES AND ALL IS DONE NO MONEY HAS LEFT OUR ACCOUNT SINCE
I agree Sean. Our branch Manager has been fantastic for us and is, with us keeping a very watchful eye out. We blocked anyone that is listed on all documents regarding BX. I also spoke with another Branch Manager yesterday from another bank about this situation regarding the money still coming out from peoples accounts and she said if it is done properly there is no way the money can come out.
the quickest way to cure a bank of incompetence/poor service is to mention two words: banking ombudsman.
Mark you said “Cancel the direct debit in the name of the company in which you signed it originally” Any idea what that company might be? I only ask because last year my shop was flooded and i lost a substantial amount of paperwork including all my BXP things so i can’t be sure who i actually signed it to originally.
I was one of the first to turn my system off and stop the deductions, months back. I then had Bill Express contact me and ask me to put it back on and they promisedto pay the rental again. They did, but of course that ended &they went bust. Since then, our CBA bank has been good. A few payments have sneaked in, but the bank has reversed them each time a day or two later, without me having to call. I’ve packed the eqiupment up. If I make the payments, it will cost me over $20,000 over the next few years. I reckong the equipment is only worth 5 or six grand new! At least we’re all this together now – safety in numbers