# Direct Debits can only be paid through account holder's bank account



## larryzx (Jul 2, 2014)

I have recently received this information from the company supplying water to my son's holiday home.

“_According to current regulations is not possible to pay ‘household utility accounts’ through a bank account that does not belong to the holder of the contract.”_

My son, for over 10 years, has owned a holiday home in Spain but does not have a bank account here. 

For many years I have been paying all his regular payments by DD from my bank account. 

His water account is still in the name of the previous owner because when I went to change it to my son’s name the water company ‘advised me to do what the Spanish do’ just change the DD bank as to make a new contract was expensive and unnecessary. Until now no problems. 

To make a new contract costs 144 euros and requires a ‘non-return value’ to be fitted, and a certificate from an approved plumber that the system is installed correctly, together over 150 euros

I would be interested to know if anyone else has encountered this problem and if so, were able to find a ‘simple’ solution.


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## snikpoh (Nov 19, 2007)

larryzx said:


> I have recently received this information from the company supplying water to my son's holiday home.
> 
> “_According to current regulations is not possible to pay ‘household utility accounts’ through a bank account that does not belong to the holder of the contract.”_
> 
> ...



This is pure rubbish (IMHO).

I have many properties which I rent out. I own the contract for the water and the electricity. The tenants pay their bills by direct debit.

I have not heard of a change to this ruling so would suspect it to be false.


What you say about changing the name on the contract is true though. You will need to show the escritura (or rental agreement) and you will (generally) need a boletin from a certified plumber or electrician. And, YES, it costs money!

Having said all of that, I personally think it is extremely stupid to leave the contract in someone else's name. The first and main problem is that if you need to evict a tenant - you can't unless the contracts/bills are in your name. 

I tried to change the name on the electricity contracts on one of my properties but couldn't because the original contract owner had died. I was asked for a signature (after I told them he was dead!) or a copy of the death certificate - which I couldn't get because I had no idea who he was or where he died - nightmare!


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## larryzx (Jul 2, 2014)

snikpoh said:


> This is pure rubbish (IMHO).
> 
> I have many properties which I rent out. I own the contract for the water and the electricity. The tenants pay their bills by direct debit.
> 
> ...



Well thanks for the reply albeit I seem to be talking "rubbish, it's false, extremely stupid, etc."

_I have not heard of a change to this ruling so would suspect it to be false_ 

I have emailed the water company and have visited their office, so it may be a misinterpretation of a law by them but hardly describable as 'false'.



As for electricity: I have changed contacts for two properties into my son's name. I did both on the telephone and was not required submit anything about the previous contact holders, not even their names nor NIE etc. 

Still on the thread: I should be grateful to heard from anyone who has been in the same situation about how they resolved it. 

Thanks


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## Lynn R (Feb 21, 2014)

The circumstances aren't identical, but I recently helped a friend out with a problem involving her water bills.

She inherited a house here from her brother. He had never changed the water contract into his name, just had the billiing name changed and paid the bills by DD. When she opened a non-resident account at the same bank he had used, they agreed to transfer the DD from his account to hers, although the billing name remained the same.

This worked OK for a couple of years, until the bank was taken over, and the new one stopped paying the DD (same with the electricity) because they weren't in her name. Until she could get over to Spain to sort it, I had to go and ask nicely for a copy of the unpaid bills (which strictly speaking they weren't obliged to give me because I wasn't the owner or the tenant, but thankfully they did) and pay them at the bank for her.

When she did come over, we had to change the contract into her name (providing a copy of the escritura de herencia, although she wasn't asked to provide any certification from a plumber) which cost €114.

By the way, as regards the electricity company, your supplier may not be the same but in our local Endesa offices there are notices displayed on the wall stating that written authorisation from the titular must be provided if any information is to be provided to, or transactions carried out by, a third party. The kind lady did give me a copy of one bill to allow me to pay it on my friend's behalf, but also gave me an authorisation form for her to complete in case of any other problems in the future.


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## larryzx (Jul 2, 2014)

Lynn R said:


> The circumstances aren't identical, but I recently helped a friend out with a problem involving her water bills.
> 
> She inherited a house here from her brother. He had never changed the water contract into his name, just had the billing name changed and paid the bills by DD. When she opened a non-resident account at the same bank he had used, they agreed to transfer the DD from his account to hers, although the billing name remained the same.
> .
> .


Thanks Lynn. That was what we did with the water bill on my son's 2 apartments and also on my lock-up garage. All 3 continued in the previous owners name. (or even a previous owners). Since changing the DDs I have also changed the bank and also changed the actual account within the second bank which pays the DDs. Until now no problem. Even the bill from the water company, which is being questioned by the water company was paid after they questioned it.


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## snikpoh (Nov 19, 2007)

larryzx said:


> Well thanks for the reply albeit I seem to be talking "rubbish, it's false, extremely stupid, etc."
> 
> _I have not heard of a change to this ruling so would suspect it to be false_
> 
> ...



Just to be clear, it's the CONTRACT that has been altered and not just the person paying the bills?

I would be extremely concerned if someone could just 'ring up' and change the contract from my name to theirs. Especially without my approval or without proving that either they now own the property (escritura) or that they are renting it (rental agreement).


If what you say the water company is asking, is true, then just imaging the problems for them if they try and enforce it with everyone. There would be so much paperwork that I suspect they would be completely swamped. I suspect you've just been unlucky.


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## larryzx (Jul 2, 2014)

snikpoh said:


> Just to be clear, it's the CONTRACT that has been altered and not just the person paying the bills?
> 
> .


Just make it clear, I did say _"As for electricity: I have changed the contacts for two properties into my son's name. I did both on the telephone and was not required to submit anything about the previous contract holders, not even their names nor NIE etc."
_
Just to be 100% sure, I just checked the accounts on line. My son is the account holder on both (as well as the D/Ds). There is no mention of any other person.


I should be grateful to heard from anyone who has been in the same situation about how they resolved it.

Thanks


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## xabiaxica (Jun 23, 2009)

larryzx said:


> Just make it clear, I did say _"As for electricity: I have changed the contacts for two properties into my son's name. I did both on the telephone and was not required to submit anything about the previous contract holders, not even their names nor NIE etc."
> _
> 
> 
> ...


the _contact_ (which is what you have written) or the _contract _??

if the latter, that is rather worrying


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## larryzx (Jul 2, 2014)

xabiachica said:


> the _contact_ (which is what you have written) or the _contract _??
> 
> if the latter, that is rather worrying


I was adding to my post when you posted, I think I have made it very clear.

It was of course a typo when I posted 'contact' as we were talking about 'Contracts' not 'contacts'


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## xabiaxica (Jun 23, 2009)

larryzx said:


> I was adding to my post when you posted, I think I have made it very clear.


sorry - still not clear

I pay the electricity bills from my bank account - the contract itself is in the landlord's name

you have written 'contact' - I'm the 'contact' because I pay the bill & they would contact me in the first instance if it wasn't paid - but the contract itself isn't in my name

you seem to be suggesting that you have changed the contract to to your son's name, but are writing the word 'contact'


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## xabiaxica (Jun 23, 2009)

larryzx said:


> I was adding to my post when you posted, I think I have made it very clear.
> 
> It was of course a typo when I posted 'contact' as we were talking about 'Contracts' not 'contacts'


& now I see you have edited your next post......

in that case, as I said, it's rather worrying


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## larryzx (Jul 2, 2014)

I would appreciate a reply to the situation I post here:-- 

I have recently received this information, by email, from the company supplying water to my son's holiday home:-
.
_......................... pero no es posible actualizarlo pues según normativa actual no es posible domiciliar los recibos en cuenta bancaria que no pertenezca a titular del contrato.

Es necesario actualizar la titularidad del contrato si desean corregir los datos de su cuenta bancaria._

“*According to current regulations is not possible to pay ‘household utility accounts’ through a bank account that does not belong to the holder of the contract.”*

My son, for over 10 years, has owned a holiday home in Spain but does not have a bank account here.

For many years I have been paying all his regular payments by DD from my bank account.

His water account is still in the name of the previous owner 

Until now no problems.

I would be interested to know if anyone else has encountered this problem and if so, were able to find a ‘simple’ solution.

Thanks
Larry


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## Lynn R (Feb 21, 2014)

I would just like to add that whatever has happened in the past, or what experiences others have had, may not really be relevant if procedures have been tightened up very recently. It might just be that the water company's own internal rules have been changed and the staff are now having to work to them.


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## larryzx (Jul 2, 2014)

Lynn R said:


> I would just like to add that whatever has happened in the past, or what experiences others have had, may not really be relevant if procedures have been tightened up very recently. It might just be that the water company's own internal rules have been changed and the staff are now having to work to them.


Thanks Lynn, that was what I wanted to know, has the law changed as my water supply company said when I visited their office ?


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## xabiaxica (Jun 23, 2009)

larryzx said:


> Thanks Lynn, that was what I wanted to know, has the law changed as my water supply company said when I visited their office ?


I think it's fairly clear that none of us know

OMIC might be the best place to ask, tomorrow

reposting the same question time & again on the thread isn't going to make it any more likely that you'll get an answer - most people read the first post of a thread & add their experiences, as we have


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## snikpoh (Nov 19, 2007)

... and I am still very concerned that there are zero checks in place meaning anyone can take over my water and electric supply without my say so. In other words, they can have my meter removed if they wish!!



> I would be extremely concerned if someone could just 'ring up' and change the contract from my name to theirs. Especially without my approval or without proving that either they now own the property (escritura) or that they are renting it (rental agreement).



If the law has changed as you suggest, then I'm surprised it has NOT been in the press!


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## larryzx (Jul 2, 2014)

xabiachica said:


> I think it's fairly clear that none of us know
> 
> - most people read the first post of a thread


Thanks for that. I understand that those who have replied do not know,

_"most people read the first post of a thread"_

That was why I posted the question again, only 17 views and those by just a couple of people. Those viewing later may know the answer but not read the question, for the reason you have given.


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## larryzx (Jul 2, 2014)

snikpoh said:


> ... If the law has changed as you suggest, then I'm surprised it has NOT been in the press!


I did not say that, I was quoting what my water supplier had said. 

I was posting to see if others had had a similar communication. 

I know my case was not unique as I have spoken to 2 others who have had the communication and it cannot be limited to just me and 2 other people, whom I happen to know.


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## xabiaxica (Jun 23, 2009)

larryzx said:


> I did not say that, I was quoting what my water supplier had said.
> 
> I was posting to see if others had had a similar communication.
> 
> I know my case was not unique as I have spoken to 2 others who have had the communication and it cannot be limited to just me and 2 other people, whom I happen to know.


apart from OMIC, as I suggested, why not ask the water company itself, for the number of the _decreto real_?


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## larryzx (Jul 2, 2014)

Just an up-date

I have not had time to speak to the water company nor OMIC since my last post, however, the plumber has done the work required for a new contract (installation of non-return valve and inspection) at a cost of 156 €.

He said that my municipality and those surrounding are all taking action against those who have contacts in names other than the actual owners.

So it would seem there will be some nasty shocks for others too.

I will report when I have taken the next step.


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## mrypg9 (Apr 26, 2008)

The water and electricity contracts are in Adelbert's name (landlord), the bills are paid by DD from my account.

No problems so far. This has been the case for over six years now.


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## larryzx (Jul 2, 2014)

mrypg9 said:


> The water and electricity contracts are in Adelbert's name (landlord), the bills are paid by DD from my account.
> 
> No problems so far. This has been the case for over six years now.



As I said in the opening thread, my son, had not had any problem for over 10 years, neither had my friend for over 15, and myself for over 12 years, but it has now changed. Hence the new thread.

So far it is only the water companies DD 's which have been affected. 


All my son's other regular payments are made by my bank as my son does not have an account in Spain. 

Incidentally: I have full Power of Attorney (Poder) for my son.-


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## Lynn R (Feb 21, 2014)

mrypg9 said:


> The water and electricity contracts are in Adelbert's name (landlord), the bills are paid by DD from my account.
> 
> No problems so far. This has been the case for over six years now.


That wouldn't be a problem even if the utility companies are tightening up their procedures, because he genuinely is the owner and you are the tenant with a rental contract.

What they are no doubt trying to rectify is the very common situation whereby the contract has stayed in the name of a previous owner (maybe the owner before last, or even further back), who may even be dead, whilst only the billing name changes.


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## larryzx (Jul 2, 2014)

Lynn R said:


> That wouldn't be a problem even if the utility companies are tightening up their procedures, because he genuinely is the owner and you are the tenant with a rental contract.


I did quote the company at post 12 :-

.
........................._ pero no es posible actualizarlo pues según normativa actual no es posible domiciliar los recibos en cuenta bancaria *que no pertenezca a titular del contrato.*

Es necesario actualizar la titularidad del contrato si desean corregir los datos de su cuenta bancaria._

“According to current regulations is not possible to pay ‘household utility accounts’ through a bank account that does not belong to the holder of the contract.”


_" ...... and you are the tenant with a rental contract."_
Sorry but you mis-read my posts. I am not the tenant. It is my son's apartment. (The person living there is a friend who is rent free; my son pays all the accounts). I have Power of Attorney (Poder). However, with water company I am dealing with, as they have made clear in the quote above and confirmed when I called into the office, being a tenant would make no difference unless we transferred the contract into their name.


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## mrypg9 (Apr 26, 2008)

Lynn R said:


> That wouldn't be a problem even if the utility companies are tightening up their procedures, because he genuinely is the owner and you are the tenant with a rental contract.
> 
> What they are no doubt trying to rectify is the very common situation whereby the contract has stayed in the name of a previous owner (maybe the owner before last, or even further back), who may even be dead, whilst only the billing name changes.


Yes, that could well be the case.
Tbh I'm not that bothered as I have agreed access to all of Adelbert's post so I'll have the bills and he knows I'll pay what's owed.
It works the other way too...I pay his Spanish bills and he reimburses me.
We really are lucky, both of us, Adelbert and I, that we have developed such agood relationship.
Mind you, I know all about his many amorous dalliances in Spain...and Iknow his wife...


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## larryzx (Jul 2, 2014)

As this thread has strayed so far from where I started it, I will start a new thread on my original theme (Direct Debits can only be paid through contracted customers' own bank account) for the benefit of those who need to know, when I get any further info.

Further. 
I have just spoken to my bank. They say it has always been the requirement that DD's can only be paid through an account which is in the name of the contract holder. However, until recently the software in the utility companies did not pick up on instances when that did not happen.

So this may be a problem for others too


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## xabiaxica (Jun 23, 2009)

larryzx said:


> As this thread has strayed so far from where I started it, I will start a new thread on my original theme (Direct Debits can only be paid through contracted customers' own bank account) for the benefit of those who need to know, when I get any further info.


can't see that it has strayed - the topic is just being discussed

that's what happens on discussion forums


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## larryzx (Jul 2, 2014)

xabiachica said:


> can't see that it has strayed - the topic is just being discussed
> 
> that's what happens on discussion forums


Extremely sorry for expressing my view that it has. And sorry that I too am now straying


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## mrypg9 (Apr 26, 2008)

Like many 'problems' in Spain, this will most likely not be a problem at all. I shan't lose sleep over it.

I'm no IT expert but I can't see why the utility companies accounting software would need to,do anything other than credit an amount paid in to the correct customer account.
Does theaccounts software distinguish between methods of payment, I wonder?


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## larryzx (Jul 2, 2014)

mrypg9 said:


> Does theaccounts software distinguish between methods of payment, I wonder?


No need to wonder give then a call 952 582 068


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## mrypg9 (Apr 26, 2008)

larryzx said:


> No need to wonder give then a call 952 582 068


Ring who?

Tbh I'm not all that interested.
I'd put money on my paying my utility bills in a year's time, just as I do now.


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## larryzx (Jul 2, 2014)

mrypg9 said:


> Ring who?
> 
> Tbh I'm not all that interested.
> I'd put money on my paying my utility bills in a year's time, just as I do now.


Sorry, I thought that as you were wondering you really might want to know the facts so your comment would be factual. But never mind, my mistake.


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## mrypg9 (Apr 26, 2008)

larryzx said:


> Sorry, I thought that as you were wondering you really might want to know the facts so your comment would be factual. But never mind, my mistake.


What facts? When I get told that I can't go on paying my utility bills as I do now, that will be a fact.
All we know is what is in the letter you posted. No-one else seems to be aware of actually having to change the method of payment.
Added to which, like most of us, you are sometimes mistaken and people like Xavi come along to put us right.
This is too trivial to spend more time on which is why people were disuinterested and began chuntering, as we often do.


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