cancelled direct debit taken, please help

pimento

My bank warns me if I try to cancel a DD on the day before it's due. Says I should call them to do it.

(First Direct)

I_luv_cats

I cancelled a Tiscali direct debit by accident on the day of payment and the Co-Op bank couldn't be sure if it would stay paid or not.

Luckily it stayed paid and it stopped the next payment!

Another time a company applied a credit to my bill (which made it a credit balance) with a pending Direct Debit and the Co-Op bank said it is down to the company if their billing system would have continued with the DD or not??

I try to work on the THREE day principle.

Standing Orders sometimes go out the day before.

Paul_Herring

From the 'other side' direct debit instructions are placed 3 working days before the DD takes place.

Cancelling (as a customer) a DD will only cancel instructions placed after the cancellation takes place. Expecting to cancel a DD taken 'tomorrow' will not cancel any DD's started 2 days ago.

If it's a genuine grievance, the DD guarantee may help, otherwise - you left it too late to cancel.

justbcuz

The process would have already started and was in place for it to be collected on the agreed day.

jambosans

Paul_Herring wrote: »

Cancelling (as a customer) a DD will only cancel instructions placed after the cancellation takes place. Expecting to cancel a DD taken 'tomorrow' will not cancel any DD's started 2 days ago.

As I've said, this is simply not true. If a customer contacts their bank after the DD Originator requested payment, the instruction can be cancelled by the bank. On day three (collection date), the instruction is returned unpaid via AUDDIS with a reason code identifying the payment as being cancelled at customer request.

The issue with the OP appears to be the method of cancellation (i.e. online), as not every channel of contact with the bank is "live" (i.e. updates the Direct Debit instruction instantly). The "three working day cycle" only effects the DD Originator, who, understandably cannot reverse the request, but the bank, who do not settle until the third working day, can simply reject the Direct Debit request.

Additional information on the Direct Debit collection cycle:-
http://www.aptbacs.co.uk/Downloads/PDF/Direct%20Debit%20Management%20Guide.pdf

I_luv_cats

An originator stopped a DD 1 working day before it was due. (Fri for Mon) The Co-Op bank said it was up to the companies systems whether there was a point of no return or not?
I wouldn't trust DD guarantee either as Halifax in the past wanted a fax from the originating company the ££ wasn't due!

purplehearts066

Hi all,
Thanks so much for the info.

I contacted the bank, and was told that the reason my account had been debited was the process of taking the direct debit had already started. They said the money will be recredited to my account on Tuesday.

Natwest are strange like that, they sort all debits/credits out over the weekend if they're due out on monday/a bank holiday. I know the money is only supposed to be earmarked, but say if I had 20 pounds in my account and a 20 pounds direct debit due out on monday, from saturday my account baolance would show as zero and I'd be unable to draw any money out. So if I can't withdraw the money, and my balance is showing as zero, then the money has been taken and not just earmarked? What is your take on that jambosans? How is pre-processing a payment different to collecting it early?

Thanks again all

jambosans

purplehearts066 wrote: »

So if I can't withdraw the money, and my balance is showing as zero, then the money has been taken and not just earmarked? What is your take on that jambosans? How is pre-processing a payment different to collecting it early?

It's the same situation (although displayed differently) for cheques and debit card payments. An uncleared cheque reflects on your balance, but is unavailable until the 2nd working day (in NatWest's case). A pending debit card payment is held against you're available funds, but the merchant does not collect payment until a few working days later. It's simply the way certain transactions are processed, hence me using the term "pre-processing".

The Direct Debit is dated Tuesday, so as far as the bank is concerned it has not left yet. Banks live on a working day basis, so you should really have cleared funds in the account the working day before any payments are due off. Essentially Saturday, Sunday or even a bank holiday do not exist in the banking world. This traditional banking world comes into conflict with 24/7 access to accounts, Faster Payments, debit cards, and sometimes internal transfers. What you have to appreciate is that much of the banking world (especially back office processing) still lives Monday to Friday, 9 till 5.