ChatterBank1 min ago
Cancelling Direct Debit
16 Answers
If you cancelled a direct debit without informing the company owed, would you be charged by your bank for a failed transaction?
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I was advised by a friend to watch the moneybox episode from the Net, but didn't get around to it. Security is near non-existent it seems.
I was advised by a friend to watch the moneybox episode from the Net, but didn't get around to it. Security is near non-existent it seems.
bhg - you're thinking of a "continuous payment authority" which is often (or perhaps always?) set up on a credit card - that can only be cancelled by the payee (very strange idea I've always thought!). A Direct Debit is covered by the banks' DD Guarantee and should (i repeat should) always be under your control.
Copied and pasted from Moneyfacts:
How to cancel a direct debit
You can cancel a direct debit at any time. However, make sure you inform the person or company that receives the payment before you do, as you could incur fees or penalties for non-payment of a bill.
This could even go onto your credit file and affect your credit rating if you don't pay a bill in a certain time frame.
Some companies (eg energy companies) offer discounts for payment by DD so you may lose the benefit if a payment is cancelled. Also if you use DD to pay your credit card balance you may get card charges
How to cancel a direct debit
You can cancel a direct debit at any time. However, make sure you inform the person or company that receives the payment before you do, as you could incur fees or penalties for non-payment of a bill.
This could even go onto your credit file and affect your credit rating if you don't pay a bill in a certain time frame.
Some companies (eg energy companies) offer discounts for payment by DD so you may lose the benefit if a payment is cancelled. Also if you use DD to pay your credit card balance you may get card charges
sfby - that's what I was thinking of AND you can also set them up on a debit card.
http:// www.mon eysavin gexpert .com/ba nking/r ecurrin g-payme nts
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