ISAs and Direct Debits

moneysavingrocks

Hi,

I opened a LUMP sum cash ISA in September 2005. Thing is, Halifax took my bank details and insisted that it was regular policy to take the money via direct debit. I therefore had to set up a direct debit.

Does this mean that come the new tax year, they are entitled to open a new ISA for me automatically and withdraw the money from my bank a/c?

If so, what is the best way to put a stop to it?

Thanks!!

david78

If they took a single lump sum payment by DD then they shouldn't take another one.

If they have taken a series of regular payments (monthly, quarterly etc) then they may take another payment, but they should write to warn you first.

If you are worried, simply cancel the direct debit with your bank (either do this in person, or on-line if you can). There is no need to tell Halifax you have done this.

Bazn

i did exactly this.... and its very easy to arrange (esp in my case as the bank acc was at halifax too)

i assume ur bank acc is not at halifax. not a big deal.

if u want to cancel the the regular payments, just call up halifax and let them know ur about to do it - it takes two minutes and reduces the risk of misunderstandings. Then call ur bank up and cancel the direct debit (if u have internet banking u can do it online).

dunstonh

A number of savings institutions now get a direct debit completed on lump sum savings. It allows you to make a deposit request with them and they can use the direct debit system to get the money from your account. That is great for telephone and internet based accounts.