Martin Lewis' Direct Debit Warning – Will you pay £ 200 a 12 months for those who don't want it?
The above clip was from the Martin Lewis Money Show on Thursday February 11th, courtesy of ITV Studios Ltd, all rights reserved. You can enable subtitles by selecting the keyboard image at the bottom right of the video. You can also watch the full episode on the ITV Hub.
They unknowingly paid out a total of £ 3,200
On ITV's The Martin Lewis Money Show earlier this week (which aired February 11, 2021), a viewer named Denise Martin tweeted for advice after finding out that the previous owner of her home was still on insurance paid for £ 200 a year – that's £ 3,200 over the 16 years.
She said, "I discovered that the previous owner of my house is still paying for home insurance on my house 16 years later. I accidentally opened the letter. I called the insurer, real estate agent, and attorney – but they won't do anything about privacy . How can I cancel this? It's over £ 200 a year. "
Martin: Check your direct debits, check your standing orders. Are you dripping away money & # 39;
But Denise & # 39; s story also sparked Martin to warn others to double-check their statements for unexpected payments. He said, "It could be you. You could watch. There are three types of payments: direct debits, standing orders, and recurring payments." Martin briefly explained:
- ON Direct debit This is what happens when you give a company your bank account routing number in order to make a regular payment from your account. This also means that the direct debit guarantee protects you if a payment fails, e.g. B. Payment on the wrong date.
- ON Standing Order is an instruction from you to your bank to withdraw a fixed amount at regular intervals.
- ON recurring payment This is when you give a company the long number on your card and then it costs money every month.
Search bank and credit card statements to find recurring payments that you no longer need or use. This could be anything from unused gym membership and subscription TV services to insuring items you no longer have. Martin said, "Check your direct debits, check your standing orders. Are you dripping away money?"
There are also services that allow you to review payments from your account. They are free to use, but you must give them access to your bank accounts. Check out our guide on how to perform a direct debit check for information on how to check for cash leaking on your bank account.
How to cancel unwanted payments
Canceling a standing order is usually free, and you can do it whenever you want. Do this through your Standing Orders and Direct Debits page on your online bank account or by phone. For direct debits via online banking or by phone, contact your bank or building society.
With recurring payments it's a little different, as Martin warned, "You have far fewer rights to this one. Before, you couldn't cancel it without going to the company. If you want to cancel, you can now call your bank. If it says that it cannot be canceled, it can and it then owes you money and you can go to the Financial Ombudsman Service. "
Please refer to our Guide to the Financial Ombudsman for detailed information on free complaints. And if you don't want to cancel recurring payments, at least try to cut the cost of subscriptions and bills. You will find comprehensive help in our guide to checking direct debits.