Standing orders and DD what's the difference?

Wizwoo

OH has got a new 0% card and normally we arrange a direct debit so that we make sure that we don't miss any payments although this only covers the minimum payment. We could set up a standing order through our on-line bank account.

What's the difference in the two with regards to our and their (CC company) rights?

I think I'm right in saying that we can set the payment level ourselves wuth a SO and therefore can set it at a level above the minimum - to pay it off quicker . He doesn't plan to use it for purchases, but are there any disadvantages to us?

Broken_hearted

Standing orders you control over amount and when its paid. Direct debit the companies control it although they are supposed to to tell you if they change the amount (they just forget)

Wizwoo

Cool - thanks for that Broken hearted - so it's a win win situation for us! :j

headcovers

I'm replying without researching, but don't you have more protection from your bank with a DD if something goes wrong?

lucyhalligan

just out of curiosity, will a standing order be taken out on a saturday/sunday, i've arranged a couple of standing orders for the day after i get paid.
I' m just thinking about it falling on a weekend

Broken_hearted

In theory yes more protection, in practice no. If you cancel a standing order it stops, if you cancel a direct debit the company can still request it and I've found most banks still pay it.

Rikki

I have a Direct Debit to cover the minimum monthly amount and I use online banking to pay extra off as and when.

Wizwoo

Rikki wrote:

I have a Direct Debit to cover the minimum monthly amount and I use online banking to pay extra off as and when.

We do that at the moment too - but I find that it makes it too easy to spend it rather than re-pay it...you know what I mean. Plus OH has just had a pay increase (doesn't work out much more a month though ) which I thought we could add to the current minimum so that as we pay it the amount we pay doesn't go down.

YorkshireBoy

Broken_hearted wrote:

In theory yes more protection, in practice no. If you cancel a standing order it stops, if you cancel a direct debit the company can still request it and I've found most banks still pay it.

The correct procedure for cancelling a DD is to ask your bank to cancel it. Then, out of courtesy, you should also inform the originator. On their website, BACS say...

Q. How do I cancel a Direct Debit?

A. If you need to cancel a Direct Debit, simply write to your bank or building society. It is also a good idea to send a copy to the organisation concerned. Your bank or building society can make the cancellation up to and including the due date, but try not to leave it until the last minute or you run the risk of a payment being made. Remember that cancelling the Direct Debit simply stops paying the organisation. If you carry on receiving the goods or service then you will have to organise an alternative payment method.

http://www.bacs.co.uk/BPSL/directdebit/generalpublic/faqs/DC_public_FAQ.htm#Q11

Rikki

Wizwoo wrote:

We do that at the moment too - but I find that it makes it too easy to spend it rather than re-pay it...you know what I mean. Plus OH has just had a pay increase (doesn't work out much more a month though ) which I thought we could add to the current minimum so that as we pay it the amount we pay doesn't go down.

I do it so I don't miss the monthly deadline and loose the low rate for life of balance. Can't spend on this card either.

At the moment I am paying the extra money off a higher rate card then I will blitz this one.

Ceri_2

nothing usually happens on your account on a weekend. offically it things go in & out your account on a weekday. I know on my online banking it is very up to date, cash does go out on a weekend (I took £20 out today & it's out my account per online banking), but things like DD's, if it is due on say the 1st april (as a saturday this year) it shouldn't actually leave your account till monday the 3rd.