Beware banks may take direct debits EARLY this Christmas

MSE_Martin

As Christmas and Boxing Day hit on Thur and Fri this year there are four non-working days in a row. This has a confusing impact on direct debits and standing orders scheduled for any of those days.

What's the worry?

Payments delayed till the next working day may leave you in default. Alternatively payments made too early, may leave you without enough cash, causing bank charges.

After talking to the official payments body APACs, here's a rundown of how it usually works.

• Standing Orders. These are regular payments you've set up yourself via your bank account. Here it will be made the first working day AFTER.
• Cheques. Cheque clearing only operates working weekdays, so pay it in before the bank hols and the clearing timescale is longer (see ChequeChecker for timings)
• Direct Debits for Credit Card Payments. The money's taken the last working day BEFORE the break to ensure you don't get a late payment fine.
• Other Direct Debits. The money's taken the first working day AFTER.

It's worth checking what payments are due, and if you're short of funds see if you can move money to cover it or change the payment date. For more on the different types of payments and how to find them out see the the Direct Debit Audit guide.

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Lokolo

Nice one. Theres a thread about someone wanting to know when theirs is taken.

Now we knows for sure...