Direct Debits/Standing Orders

druper64

Hi

Checked my account yesterday to see if my son's maintenance money had gone in (which it hadn't), to find that direct debits and standing orders due to go out on the 1st of the month had gone a day early.

Is this right, are they allowed to do this?

I'm very confused and annoyed to say the least, but surely if an item is to be paid on the 1st of the month then that is when it should go, not the month before?

Any help or an insight greatly appreciated, as I don't get anywhere with the bank.

Thanks in advance

Mark_In_Hampshire

By "gone a day early"...

Back in the days when I used direct debit, I used to notice the funds would disappear from the available balance the day before the actual debit.

However the statement entry would then follow the day after, showing the correct debit date.

The payee is meant to inform you in advance if the date or amount of a DD changes, however they are not required to give you any specific notice period (it varies by payee as they see fit) and in practical terms, it's academic anyway:

If the debit is taken a day early, you can have it voided by the bank and the money put back in your account which sounds like the right thing to do on point of priciple anyway - have the lot reversed.

However that then places you in breach of contract with the suppliers whom you now haven't paid, so that part of the DD guarantee is only a theoretical one anyway as you can't actually use it unless e.g. the payee is not known to you (DD set up without your consent) or the amount is not due yet.

Also bear in mind that while some people are of the belief that they have some form of "payment plan" which means the amount and date are the same every month, that is not actually supported by the DD system any more. All DDs are unspecified amounts/unspecified dates, so the payee can still alter either regardless of what you believed to be the case when you signed up.