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I despise direct debits

Hi

Is it just me or does anyone else here hate using direct debits. Each time I have set one up it has either been taken early or for the wrong amount and usually resulted in me getting a charge from my bank.

Now I don't use them at all, and I pay the companies when I want to as apposed to when they feel like taking it.

I have read so many times on these boards about people who have become overdrawn due to direct debits. Especially on the Utilities board where the energy companies are changing their rates and people are finding they cannot afford them.

I know that I am paying more for certain services but its still a damn site cheaper than getting charged of the bank, and the hastle of putting things right.

Direct Debits should be banned forever.:mad:
I used to suffer from lack of motivation.... now I just can't be arsed.

Official DFW Nerd Club - Member no. 1141 - Proud to be dealing with my debts :cool:
«13

Comments

  • Kavanne
    Kavanne Posts: 5,093 Forumite
    I like em.

    All my bills come out for a set date, I always set them for the 1st. Takes all the hassle away.

    I vote no ban, pls. You can just not use them. Thnx.
    Kavanne
    Nuns! Nuns! Reverse!

    'I do my job, do you do yours?'

    • If the amounts to be paid or the payment dates change, the organisation collecting the payment 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 contacting your bank or building society. We also recommend you notify the organisation concerned.
    • If the amounts to be paid or the payment dates change, the organisation collecting the payment 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 contacting your bank or building society. We also recommend you notify the organisation concerned.

    Thats all well and good when its written on paper, but the hastle you have to go through to get a refund is unreal. And not once was I ever contacted to tell me that the date would be changed.
    The hastle far outweighs and benefits, and I hate the idea of some company just changing the amount like the energy companies do.
    I used to suffer from lack of motivation.... now I just can't be arsed.

    Official DFW Nerd Club - Member no. 1141 - Proud to be dealing with my debts :cool:
  • Mark7799
    Mark7799 Posts: 4,806 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    So what do I do differently???

    I pay the following by direct debit

    Gas
    Electricity
    Sky
    Setanta
    Telephone
    Broadband

    and I've never had a single problem in nearly 20 years since I bought my first home?
    Gwlad heb iaith, gwlad heb galon
  • Sharon87
    Sharon87 Posts: 4,011 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    I've had no problems either. I just make sure I pay in my bill money by a certain date and voila. I can also cancel the direct debit online if absolutely necessary.

    Also I check my online banking more than once a day so if something did come out I can transfer some money in there so I wont get charged!
  • Pont
    Pont Posts: 1,459 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    My 'heart' is with elaina79 - I just want a bill through my door every quarter and pay it when it arrives. I also don't like the idea of multi-nationals holding my money (in credit) and drawing interest on my hard earned cash when I could be earning it myself. I don't like being charged extra (admin costs!) for not taking out dds when it's patently obvious it costs more to administer 3 direct debit payments a quarter rather than processing one cheque (rip off!). I resent the fact that in many cases I have no other option other than sign up for direct debits (Sky, internet etc).
    However, my 'head' says go with the flow..........can't be doing with the hassel (what happened to my stance of buck the system?).
  • Premier_2
    Premier_2 Posts: 15,141 Forumite
    10,000 Posts Combo Breaker
    elaina79 wrote: »
    Thats all well and good when its written on paper, but the hastle you have to go through to get a refund is unreal. And not once was I ever contacted to tell me that the date would be changed.
    The hastle far outweighs and benefits, and I hate the idea of some company just changing the amount like the energy companies do.
    Hassle? :confused:

    You simply contact your bank and ask for the amount debited to be returned. The bank is obliged to accept your word for any error and process the refund.

    You may also be interested to know that an originator may not collect a DD early, but may collect up to 3 working days after the specified date in the advance notice (though I've usually found they collect on the specified date)
    If this rule is not followed, you can request full reimbursement from your bank

    Only the amount specified in the advance notice may be collected. Again, full reimbursement from your bank can be applied for if this rule is not followed.

    Finally, if consequential damages (e.g. bank charges) are incurred because of an incorrect DD, then you can apply to your bank to make an indemnity claim to the originator for those damages too. However, the bank does not have to pay you the consequential loss amount until they themselves receive it from the originator.

    The Direct Debit Scheme is one of the most one-sided agreements biased in favour of the customer/payer, but as it has to as it relies on the total confidence of the payer for the scheme to work. I am surprised any payer could think the scheme is poor as the payer has total control.
    The payer sets agrees to the mandate originally.
    The payer can cancel the mandate at any time with their bank.
    The payer must receive advance notice before any variation in an previously notified amount is collected.
    The bank is effectively an independent third party agent with no preference to either side.
    The payer can demand a full refund from the bank without question.
    The payer can even ask the bank to pursue the originator for consequential losses.

    The trouble I believe is that may payers don't fully understand the scheme. This is not surprising since many originators don't either, and neither do many bank staff members.

    The full rules of the Direct Debit Scheme are laid out in writing by BACS Ltd, the trouble is only certain people can access those publications.
    The full rules are by necessity quite complex and exhaustive and may confuse the average payer.
    However the details of the rules shouldn't really affect the average payer - the payer is fully protected by the extremely simple Direct Debit Guarantee, but that does depend on the other parties, especially the bank, to understand them.
    "Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 2010
  • I avoid direct debits, harder to control money and more hassle
  • I find dd useful ,however my daughter has had a problemwhere edf took £120 out completely out of the blue ,they had already taken out her normal dd,she is in credit so it wasnt for a shortfall. She contacted EDFwho said it was a mistake and she would get a refund in about 9 days ,her bank( Halifax) said they couldn't do anything, until they were quoted the dd guarentee ,however they required daughter to fill a form out in the branch .
  • Kavanne
    Kavanne Posts: 5,093 Forumite
    I owe my gas about £300 in the winter, and then catch up to 0 in the summer... I don't want multinationals holding my money either!!

    Also means I am FORCED to pay my credit cards as I always set up whole bill direct debits, so I can't get into any trouble.
    Kavanne
    Nuns! Nuns! Reverse!

    'I do my job, do you do yours?'

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