Q&A DOMINIC COYLE QI have dealt with my bank for over 20 years. I cancelled my credit card in December 2007 and transferred the balance, which was attracting interest of 18.5 per cent, to a provider which charges me 0 per cent interest on balance transfers and transactions for the first six months. Even after this, the interest rate, at 8.5 per cent, is less than half what we were paying to our credit card in 2007.

I closed the account in December 2007. I paid by balance transfer to my new account and thought I had made a great move. I then checked that the account was closed. The original bank confirmed that the effective date was January 11th, 2008, and issued, on my request, a letter to confirm that the account was closed.

I received a statement in February showing an online direct debit of about €10. I assumed it must have been an oversight on my part and promptly paid via telephone. I received another statement in March last with the same debit showing up. I called the customer care team and explained that the account was closed by me on January 11th. They confirm this record but insist that they are legally bound to honour any direct debit initiated by myself. I have argued that, as the account was closed before the date the direct debits were accepted from the account, I should not be liable for these amounts. The total amount due, including interest, is about €23.

Is it possible that my previous bank would have a policy of keeping credit card accounts "open" when "closed" by the customer? Effectively I can continue to use my cancelled credit card to purchase online.

I have asked a customer services agent for all correspondence in relation to this account over the last six months be forwarded to me.

Is this bank correct in stating that my direct debit mandate supersedes the closure of my account? Am I obliged to pay money into a closed account? Do you think our banks have a tacit policy of keeping high-interest earning accounts open at any cost in the face of fierce competition?

Mr M.M., by email

ARealistically, we are talking about two separate issues here. You do not say what the direct debit mandate is for, but you have an obligation to meet it, presuming that you set it up in the first place and it relates to a service you still receive or an acquisition you are still paying off. If a direct debit is to be cancelled, you, the customer, need to instigate that process.

Equally, an account is closed once it is closed. It is not a shadow account. Clearly, the issue of any direct debits drawn on this account should have been sorted out before the account was closed. As it is your direct debt, this would appear to me to be largely your responsibility although I would certainly argue the bank did not do its job properly in closing the account without addressing ongoing debits.

There is no point just ignoring this and it is not a question of you "chasing the bank" for the €20. This debit is likely to continue to be billed to you each month going forward.

You made an entirely sensible decision to switch your credit card account to an institution offering a lower interest rate. I have spoken to a number of people in the banking industry and it would be surprising if the switching process to your new credit card account did not involve the transfer of direct debits and other such regular payments. However, if you carried out the switching process yourself rather than through the banks, that could explain it.

You should now decide either to organise the transfer of the direct debt to that account or to another account you have with the original bank.

By the way, you will not be able to use the old card to make internet purchases and no, I am not aware of any policy by any banks to keep open accounts that have been closed. I am certain there is no such policy although there is always the possibility of the odd error.

Your request for correspondence is sensible. I would suggest that all further dealings be in writing. That way everyone has a record of where they stand.

Please send your queries to Dominic Coyle, Q&A, The Irish Times, 24-28 Tara Street, Dublin 2 or by e-mail to dcoyle@irish-times.ie. This column is a reader service and is not intended to replace professional advice.