Here are some frequently asked questions.
What is Direct Debit?
Direct Debit is a simple, safe and convenient way to manage your household bills or make regular or occasional payments from your bank account. You agree with the organisation the amount to be collected and the date of payment. From then on the amount will be deducted from your account as agreed. If they need to change the amount or collection date, they have to notify you first.
How do I set up a Direct Debit?
You can either complete a Direct Debit Instruction, obtained from the organisation you wish to pay, and return it to them or with some organisations you can set up Direct Debits over the telephone or via the internet. The organisation will then forward your instructions onto your bank authorising them to allow payments to be collected from your account to them.
What information do I need to set up a Direct Debit?
You will require the following information:
- your name and address
- the name and address of your bank or building society
- your bank or building society account number
- the branch sort code of your bank or building society (see your cheque book)
- the name(s) on the account.
What do I do if I have a query about a Direct Debit?
Speak to your bank or building society.
Can Direct Debits be paid from any account?
Most current accounts at banks and building societies can be used to make Direct Debit payments. Some special deposit accounts also allow them - just ask at your branch.
If I set up a Direct Debit over the telephone or via the internet what record will I have of the agreement?
You will be sent written confirmation of your Direct Debit Instruction within three working days of the telephone call or online sign up, or alternatively no fewer than 10 working days before the first collection. Simply check the details and contact the organisation you're paying if you have a query. Regardless of what method of sign up you agree to, you are still fully covered by the Direct Debit Guarantee.
Can I authorise a third party to sign up giving my account details over the phone or via the internet?
No. Only the account holder can set up the Direct Debit Instruction. In this instance the organisation concerned would forward a paper Direct Debit Instruction to you for authorisation.
Once it is set up, do I have to do anything?
No, other than making sure you have sufficient funds in your account when the payment is due. To assist with this the organisation will give you advance notice of the collection dates and amounts, whether you set up a Direct Debit by the telephone, internet or by completing a paper Instruction. It is a good idea to check your bank statement regularly to ensure that all your Direct Debits are going out as shown on your advance notice.
Will the payment always be on the same date every month?
Normally payments will be made on the same date each month, quarter or annually according to the payment frequency. If any payment due date falls at a weekend or on a bank holiday, the organisation is obliged to debit your account just after that due date unless they notify you in advance of a change of date.
What if changes are needed?
If either the amount you owe, the frequency or the payment date changes, the organisation concerned has to notify you in advance (normally 10 working days) of your account being debited. This gives you time to get in touch with them if necessary.
How do I cancel a Direct Debit?
If you need to cancel a Direct Debit, simply write to your bank or building society. It is also a good idea to send a copy to the organisation concerned. Your bank or building society can make the cancellation up to and including the due date, but try not to leave it until the last minute or you run the risk of a payment being made. Remember that cancelling the Direct Debit simply stops paying the organisation. If you carry on receiving the goods or service then you will have to organise an alternative payment method.
Can I cancel a Direct Debit over the telephone or via the internet?
Usually, however written confirmation may be required. We also recommend you notify the organisation concerned.
What information should I provide in order to cancel?
You will need to provide the following information:
- the name of the organisation being paid
- your bank or building society account number
- the name(s) on the account
- the branch sort code (see your cheque book)
- your customer reference with the organisation (if possible).
What is the Direct Debit Guarantee?
The Guarantee is operated by all banks and building societies that take part in the Direct Debit Scheme. The efficiency and security of the Scheme is monitored and protected by your own bank or building society.
If the amounts to be paid or the payment dates change, the organisation will notify you normally 10 working days in advance of your account being debited or as otherwise agreed.
If an error is made by the organisation or your bank or building society, you are guaranteed a full and immediate refund from your branch of the amount paid.
You can cancel a Direct Debit at any time by writing to your bank or building society. Please also send a copy of your letter to the organisation.
Can money be collected from my account after I have cancelled a Direct Debit Instruction?
No. The organisation would have to get your authority to reinstate a cancelled Instruction.
Who actually controls Direct Debit payments?
The bank or building society that holds your account is responsible for all aspects of the running of that account. They are therefore answerable for all payments, including those made by Direct Debit.
Who makes sure that the organisations collecting money are reputable?
All organisations using the Direct Debit system are sponsored into the Scheme by their bank or building society. They are checked for integrity, sound financial standing and administrative capability before being permitted to offer Direct Debit to their customers.
How do I get back any money paid in error?
If any payment is made in error, you should contact your bank or building society who are responsible for giving you a full and immediate refund - even if the original error was made by the organisation collecting the payment.
How can I be sure my account is safe from fraud?
It's very unlikely that this will ever occur because organisations using the Direct Debit Scheme go through a careful vetting process before they're authorised, and are closely monitored by the banking industry. But if money were to be drawn from your account fraudulently you'd be protected by the Direct Debit Guarantee, and would be entitled to an immediate refund from your bank or building society.
What is a dormancy period?
All banks hold details of Direct Debit Instructions on file for a minimum period of 13 months from lodgement of the Direct Debit Instruction, in the event of no collections, or from the date of the last payment.
Why has a dormancy period been introduced?
The dormancy period rule was introduced as a safeguard to the Direct Debit Scheme to protect payers from Direct Debit Instructions being live on their account indefinitely. So if you should forget to cancel a Direct Debit it will be removed from the banks' system after the dormancy period has lapsed.
What happens to a Direct Debit Instruction at the end of a dormancy period?
After the dormancy period has passed, the bank will remove details of the Instruction from their system. Before claiming further Direct Debit payments the organisation must obtain a new Direct Debit Instruction or your authority to continue collecting. If this is not done your Direct Debit payment may be returned by your bank.
What difference does AUDDIS make?
Since it is automated, AUDDIS lets banks and the organisation you are paying process Direct Debit Instructions more effectively by reducing paperwork and the possibility of human error. Therefore it provides you with a more efficient service.
How will my bank know it's really me authorising a Direct Debit Instruction if it hasn't checked my signature?
Under AUDDIS the organisation you are paying is responsible for checking all the information contained on your Direct Debit Instruction and satisfying themselves that they have sufficient identification. If your bank has any reason to doubt the authenticity they may request a copy of the Direct Debit Instruction from the organisation.
If I set up a Direct Debit over the telephone or via the internet what record will I have of the agreement?
You will be sent written confirmation of your Direct Debit Instruction within three working days of the telephone call or other online sign up. Alternatively a letter incorporating advance notice information will be sent to you no fewer than 10 working days before the first collection is debited providing the first collection is made within a month of the Direct Debit being set up. Simply check the details and contact the organisation if you have a query. Regardless of what method of sign up you agree to you are still fully covered by the Direct Debit Guarantee.
