Banks must introduce better safeguards for customers who pay bills by direct debit, a consumer watchdog has warned.
Banks must introduce better safeguards for customers who pay bills by direct debit, a consumer watchdog has warned.
Trading Standards says that businesses take far too long to sort out their mistakes with payments, leaving customers out of pocket.
Trading Standards says that businesses take far too long to sort out their mistakes with payments, leaving customers out of pocket.
It adds that the government should intervene with legislation if industry fails to take action.
It adds that the government should intervene with legislation if industry fails to take action.
Guarantees that banks will put right cases where the wrong amount is deducted do not always work, it adds.
The banking industry says mistakes are few and far between. Its advice is to always check bank statements carefully.
But Trading Standards says that in practice this does not always work.
Trading Standards say guarantees that banks will put right cases where the wrong amount is deducted do not always work.
The banking industry says mistakes are few and far between.
'Not infallible'
Its advice is to always check bank statements carefully.
Tony Northcott, of the Trading Standards Institute, said that legislation should be created to protect customers should direct debit payments go wrong.
"With more and more companies demanding payments this way, there has to be something put in place to stop people battling these big companies on their own," he said.
"There's a need to get their stall in order before demanding payments in this way, as it would appear the system is not infallible."
He added that customers should be reimbursed for any losses resulting from mistakes with the firm responsible paying back any interest made on the payment, as well as compensation.
The call comes after 400,000 workers were not paid on time due to problems with the banking system.
The call comes after 400,000 workers were not paid on time due to problems with the banking system.
Have you been affected by mistakes with direct debit payments? Do you think better safeguards are necessary? Send us your comments and experiences using the form below.
Have you been affected by mistakes with direct debit payments? Do you think better safeguards are necessary? Send us your comments and experiences using the form below.
