How long is a direct debit valid for

anna42hmr

Can any one confirm how long a direct debit is valid for, i think it is 13 months is that right? reason i am asking is i have a 12 month membership for one of my local theatres, so the direct debit is payable annually.

Usually it is fine, however they have given me 2 months free membership this year as part of a promotion, because of this it will be 14 months between the last direct debit taken last year and the one that is due this year, will the bank still honour it?

Or do i need to contact the theatre and ask them to send another mandate?

Old_Git

DD will continue until either side cancel it .The theatre should request the DD two months later .

EarthBoy

Old_Git wrote: »

DD will continue until either side cancel it .The theatre should request the DD two months later .

This is not correct. If a direct debit is unused for a long time most banks will cancel it. This is usually 13 months, although in some cases a longer period may apply. The Payments Council refers to this as the "dormancy period":

http://www.paymentscouncil.org.uk/resources_and_publications/faqs/automated_payments/-/page/1206/

What is a dormancy period?

The time after which a bank or building society will drop details of a Direct Debit Instruction from a payers account if no collections have been made in that time. The period is normally 13 months.

ironlady2022

I agree with Old Git, DDs are not cancelled unless instructed to. I used to work for a bank, and unless either parties sends an instruction, the bank will not act. I guess it is dependant on the bank and Earthboy if what you say is true then I don't think the banks are doing it correctly then.

Hazzanet

http://www.thesmartwaytopay.co.uk/did-you-know.asp

Q : What is a dormancy period?


A: All banks hold details of Direct Debit Instructions on file for a minimum period of 13 months from lodgement of the Direct Debit Instruction, in the event of no collections, or from the date of the last payment.

Q: Why has a dormancy period been introduced?


A: The dormancy period rule was introduced as a safeguard to the Direct Debit Scheme to protect payers from Direct Debit Instructions being live on their account indefinitely. So if you should forget to cancel a Direct Debit it will be removed from the banks' system after the dormancy period has lapsed.

Q: What happens to a Direct Debit Instruction at the end of a dormancy period?


A: After the dormancy period has passed, the bank will remove details of the Instruction from their system. Before claiming further Direct Debit payments the organisation must obtain a new Direct Debit Instruction or your authority to continue collecting. If this is not done your Direct Debit payment may be returned by your bank.

anna42hmr

thanks for the replies all,

not sure what to do now, wether to ring lloyds and tell them to ensure its not removed from their system, to ask the theatre to send a new mandate, or just to sit and wait and see what happens.

Mikeyorks

anna42hmr wrote: »

not sure what to do now, .

It's the DD system that requires the dormancy period ... so the Bank shouldn't be able to override their software that disables dormant cases. In the past I've made token payments to avoid this .... but that's been where I've had control of the DD where it's linked to a savings account.

Either get the theatre to take a token amount .... or alert them to what will happen. And that you're amenable to them simply replacing the Mandate. They will be told by your Bank when the Mandate evaporates ...... but I'm not sure if the reason is identified in the notification.

anna42hmr

thanks, may ask them to send a new mandate for me to fill in and cancel the old one myself

bubieyehyeh

Intelligent finance recently deleted a direct debit of mine, not used for more than 13 months. They didn't warn me which would have been better. They told me the company would have been informed and should of requested it be setup again. However the credit card company did not request it be setup again.

Mikeyorks

bubieyehyeh wrote: »

. However the credit card company did not request it be setup again.

They would have needed your OK to do that. If you hadn't been using the DD for that length of time (or the CC) ..... I'm not certain where the prompt comes from to get them to re-establish it?