Bank refuses to cancel revoke authorization on my Direct debit

LJames Nav on 19/01/2015 - 11:11

Hi Ozbargainers,

Been following oz bargain discussions for a while now, but this is my first post!

I'd like to know if I can I revoke authorization for a direct debit on my bank account? I have a savings account at Commonwealth Bank bank which has a direct debit on it.

I went to the bank branch and requested that the direct debit be cancelled from my end. However, the customer service representative said that they cannot do this and I need to talk to my service provider who I signed my direct debit agreement with. I said I have already done so, but just to be sure no more direct debits occur so I want to revoke authorization as well…the customer service manager said no, we cant do this because "you have signed a agreement with another party, And if they do another direct debit you should open a dispute to recover the money taken from your account".

This seems very strange to me as it is my bank account with my money and it is I who should have the ultimate say on money being debited regardless of any agreements signed with a 3rd party. It's the principle of the matter that I control my account is what I'm really annoyed about.

I showed the guy this page from moneysmart.com.au (http://www.moneyhelp.org.au/tools-tips/cancelling-a-direct-d…) which clearly says that financial institutions must revoke direct debit authorizations if customers request it, but the guy got really defensive and said something like "I've been doing this for a long time, thats why I got into this customer service manager role.. blah blah blah"

So I told him, "Ok, how about I close my account and create a new account, so the direct debit if it should occur will fail anyway". He said "No problem, we can create a new account for you, and order new debit cards, no probs at all". How ridiculous is that :|

Does anyone have any experience on matters like this? Was commonwealth bank correct to refuse my request?

Financial

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Commonwealth Bank
Commonwealth Bank

Comments

  • akd on 19/01/2015 - 11:34
    +2

    I had similar experience with Commonwealth bank in the past while dealing with Vaya Mobile. I sometimes feels that I have lost control over my money in the bank. The rules and policies of banks and third parties gives them control over my money than me; be it direct debit or change in fees or overcharging for failure of direct debit.
    Recently Netspeed telecom deducted money from my Credit card due to delay in payment. Their excuse that the cc information was in their system. I even did not have direct debit setup.I used to enter my credit card details every month to pay the bill, never knowing that they have saved my credit card details. After big argument with customer service team, I cancelled my account, but it was scary experience. I could have raised the issue with Commonwealth bank but found it better to stay away from this dodgy company.

  • endotherm on 19/01/2015 - 12:03

    I once foolishly put a direct debit authorisation for my gas supplier, which was to be debited on the 1st of the month. Well, the 10th comes around and I'm looking for money to make a purchase and I dip into this account which has some savings. Next thing I know I'm getting a dishonour fee for not having sufficient funds for a debit that they took out on the 12th of the month! The authorisation is for the 1st of the month (or the next working day) not the 12th! After a lot of arguing and high blood pressure I got the "fine" reversed and my money back. Needless to say I cancelled that and have never used direct debit since.

    Fast forward 4 years or more, out of the blue I get a quarterly bill direct debited from the account. WTF? I go to the bank and abuse them for taking money out of my account when there clearly is no authorisation in existence. I am told that certain large organisations like utility companies can make such requests and they are taken on face value by the banks, i.e. they just assume they have an authority for direct debit, without checking. The only thing they have is my details on file after the previous debacle, which they don't need any more, and didn't delete when it was cancelled. Feathers flew and a lot of four-letter words were used that day my friends!

  • endotherm on 19/01/2015 - 12:10
    +5

    For any recurring bills I pay now (e.g. monthly health insurance), they come out of a credit card, not a savings account. If there are insufficient funds, the card transaction is simply declined. Free. From a savings account with no money; fees from your bank and their bank. Also if there is an unauthorised transaction, you can dispute a credit card transaction and your credit is protected. With a savings account, the cash is gone, and you have to fight to get it returned.

  • sparkles on 19/01/2015 - 12:46
    +1

    I find with CBA they direct debited from my account even with no funds in it (eBay selling fees I forgot about). I went into negative in that account. And then CBA give me a nice $10 fee as a reward. In my opinion, if there are insufficent funds they should be declining it. Direct debits are handy on the whole, but a PITA if you lose control of what is happening.

  • Baysew on 19/01/2015 - 12:52
    +5

    Was Commonwealth Bank wrong to refuse my request ?

    Yes, according to their own T & C's

    ( https://www.google.com.au/url?sa=t&rct=j&q=&esrc=s&source=we…)

    • eqv on 20/01/2015 - 21:10
      +1

      Ask to talk to his manager and show this document?! He can get into trouble for not complying with the t&c that the bank itself has set for their customer.

  • Geewhizz on 23/01/2015 - 07:49

    Just out of interest, OP, you say you showed the guy the page from the link. Did you provide the written request, which it states you have to do, or simply expect him to act based on seeing a web page that tells you what you need to do, although you haven't actually done it?

    It would be worthwhile tracking down the actual legislation that compels them to actually discontinue your direct debit, and taking the appropriate action, as spelled out there. Once you have done that, if the bank still refuses, report them to the ombudsman.

    • Baysew on 23/01/2015 - 09:55

      I would expect the bank to provide good customer service, and act promptly on my request.
      The bank can provide the relevant paperwork (that they are happy with) and get me to sign.

      Tracking down the actual legislation. You are dreaming !
      What next, bring in a team of QC's next time I want to check my balance ?

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