Direct Debits- the 90 day rule

[Guest NATTIE]

This is a quick but of advice but if you have Direct Debits that you know you cannot cover then you as a customer can cancel it and reinstate it within 90 days at no cost to yourself. I would also advise DD company as well that it has been cancelled until funds are in the account.

Remember most banks will state that if money is not paid in on the previous working day then the DD could be bounced and you will be charged(yes, I know you can reclaim them via the legal process, before anyone asks). The previous working day is Friday for weekend payments, and Monday for Tuesdays payments, etc,etc,.

Kidson has also pointed out to me, thanks for that info, that if the bank cancels a DD then you cannot reset if up for 90 days.

With DD there is a dormancy period of 13 months for cancelled Direct Debits.

With Standing Orders if they are being cancelled, get the details of the Standing Order prior to being cancelled as there is no dormancy period for these payments, although you can amend them 2 working days prior to them going out.

 

This is mainly for information and I believe the information to be correct. Hope it helps everyone who may have circumstances where they will need to use this information.

[wycombemariner]

Thats wrong!

 

If a bank cancels a direct debit you can have it set up again the next day - you just have to ask! I know this as i've done it loads of times

[Guest NATTIE]

I was not going to write on the threads but my back has been put right up by a few things not yourself. My gut feeling on the bank thing was that it was incorrect but Kidson has assured me this is correct and I cannot find info that does not support it. Give Kidson a PM on it.

[bwfs2003]

Well here is my experience of cancelled d/d's.

 

I used to work as an insurance company rep and I have set up thousands of d/d's for customers with life assurance policies, pensions and so forth.

 

Customer cancels a d/d as he is temporarily short of money. He pays the arrears in cash and wants to continue paying by d/d. We complete a fresh d/d mandate and send it to the bank. The bank reject it saying it has been cancelled.

 

The bank's advice when I contacted them was:

 

The d/d with that reference is flagged as being cancelled. We either need to use a different reference (not practicable) or get the customer to write to them and ask them to manually remove the cancelled flag.

 

That worked at the time (about 10 years ago), but it may be totally different now.

[Guest NATTIE]

This thread has bugged me for a while, and, yes I know I wrote it.

The information about reinstatement when the bank has cancelled the DD is WRONG. So I have to correct the information because I am 100% that the information that was given to Kidson was misinformation. If the bank cancel a DD because it has been bouced twice within a 3 month period, they can reinstate it within 90 days of that cancellation.

[icklepeach]

Hi Natweststaffmember

 

I'm sort of with Kidson on this one, Although the information is not definately correct, I've had problems with a direct debit the bank cancelled, I tried repeatedly to set it up both with the company and with the bank, but it failed every time, and no-one could explain why. I even had letters from both sides confirming the DD had been set up, but it STILL failed *sigh*

 

Could it happen without it being a policy as such? If that makes ANY sense.

 

Gah, my brain hurts now.

 

iPeach

[Guest NATTIE]

Icklepeach- I cannot say how I know the information but I also spoke to someone else who confirmed that the information is correct. If the bank bounce a DD twice within a three month period the bank cancel it, however the bank can reinstate the DD that has been cancelled within the 90 day period. I am 100% certain. My convo with kidson was that ppl that were higher within the bank has given misinformation which I could not be certain enough not to refute. I am now, i hope that clarifies it.

[Bizarre.Moogle]

There are two ways to cancel a D/Debit. One is a straight forward cancel were you block against the Originator Number and reference, so then if the company set up another D/D but with a different ref it would claim.

 

You can also place on stops, these block the Originator code for approx a year and a half. During this time, no matter what ref the company will use it will not get set up.

 

This is how the above works for the bank I work with.

 

Just mailed BankFodder to let him know I work in a bank and seeking next steps from him.

[pugsley]

I can cancel them and reinstate them 10 days afterwards and have done a few times

[Guest NATTIE]

that is what I have said.

[indebtstudent]

I understand we can reinstate direct debits, but wasn't aware of the timescale.

 

In addition re difficulties setting up a direct debit after one has bene cancelled there MUST be a way to do this as companies do it all the time. I have dealt with several customer's who simply couldn't understand what had happened as they had cancelled on eDD but another different one had been setup.

 

Dodgy practice proabably but it happens

[mollington]

basicaly when a dd is cancelled by the bank (not by the customer with the bank, but by the bank itself) a block code is put on auddis which needs to be removed by the bank before the dd can be set up again, (ive yelled at lots of bank staff about this so it seems to be little known information)

 

if a dd is canclled by the bank at the customers request then they can set up again as they wish to, but that needs to be done with the company the direct debit was going to ,