THE GUARDIAN (UK): ASK KATHLEEN: Can a firm debit us without providing a service?: "Shell Gas stopped delivering gas to us in April last year and still has £231.44 we paid to the company in monthly installments by direct debit. We cancelled the direct debit in October 2004 and have made numerous phone calls and written two letters but, despite all kinds of promises, have not had our money returned" (ShellNews.net) Posted 16 March 05

Q. Shell Gas stopped delivering gas to us in April last year and still has £231.44 we paid to the company in monthly installments by direct debit. We cancelled the direct debit in October 2004 and have made numerous phone calls and written two letters but, despite all kinds of promises, have not had our money returned.

We believe that it is contravening the direct debit agreement. Is this correct?

JP

A. You're absolutely correct. The direct debit system guarantees that where payments are erroneously taken from your account - and, clearly, if Shell had stopped providing you with a service, it was no longer entitled to payment for said service - they will be refunded immediately, quibble-free.

However, it is your bank you must pursue for the refund, not Shell. Put your complaint in writing, send your letter by recorded delivery (costs about 60p), and keep a copy of it. Your bank should sort the matter out pretty swiftly, but do contact us again if it doesn't.

http://money.guardian.co.uk/experts/consumer/story/0,,1438107,00.html