Difference between Direct Debit and Standing Order?

merri-drake

Hello! :T
I was wondering if one of the lovely MoneySavers could tell me the difference between Direct debit and Standing Order as I want to set up one with my bank for a debt I have and I don't want the debt company to be able to change the amount they take from my account as the agreement is only for £4 per month...
Many thanks for your help and best wishes for a happy new year! :j
Merri x

lilian1977

Hi

A direct debit is something the company will set up and you authorise, they can change the amounts they charge you but have to give you notification - for example, a monthly mobile contract where they send you a bill and a payment date.

A standing order is something you set up to pay a company, they will provide you with payment and reference details. You control this, from the amounts you pay, the dates you pay them, to the cancellation at the end.

HTH

dollydo

Hi Merri,

The difference is that a direct debit allows companies to take payments from your account. They take as much as required as and when ( they are meant to notify as what they are going to take, but doesn't always happen!!).

Standing orders are made from yourself and you are in charge of the amount that is paid and the date that it is paid. No extra payments etc can be taken as the company has no access to your bank account. I would always go for a standing order. You are in control !

Hope that helps.

merri-drake

Many thanks to both of you for answering my question - I will go for the standing order!
Best wishes,
Merri x