How long after a DD is paid can the bank reverse it?

Katharine

As above reallly help appreciated. How many days after can the bank decide to take it back again, by when is a DD definatly paid?

Thanks.

EarthBoy

A direct debit is "definitely paid" immediately. The bank would never "decide to take it back again", -why would they? It can only be reversed if the Direct Debit guarantee is invoked, i.e. if the amount taken or the date it was taken on, aren't what was agreed with the originator.

Silvafox

Your post is hard to understand, so not sure this answers it...

A bank can recall a DD on the actual day it leaves your account - then it will appear back in your account the next day. But they only do that if you ring them up and ask them to. They wouldn't do it themselves for no reason.

YorkshireBoy

EarthBoy wrote: »

A direct debit is "definitely paid" immediately. The bank would never "decide to take it back again".

I don't think that's correct.

Classic example being DD pulls into savings accounts, which often result in a quarantine period (3 to 4 days from memory of my dealings with ING et al) where the funds cannot be transferred back out again.

pvt

YorkshireBoy wrote: »

I don't think that's correct.

Classic example being DD pulls into savings accounts, which often result in a quarantine period (3 to 4 days from memory of my dealings with ING et al) where the funds cannot be transferred back out again.

Yorkie,

Isn't that a different thing altogether? That is surely about when the drawing bank considers the money cleared for withdrawal?

pvt

[Deleted User]

Katharine wrote: »

As above reallly help appreciated. How many days after can the bank decide to take it back again, by when is a DD definatly paid?

Thanks.

DD goes on day and refunded only by company
bank cant take it back unless you request not just for no reason

Mikeyorks

YorkshireBoy wrote: »

(3 to 4 days from memory of my dealings with ING et al)

But ING were weird. DDs pulled into their Savings accounts then sat there as 'uncleared' funds for up to 4 days. Having experienced that once I simply BACsed stuff across thereafter.

But I think that's more ING than DDs in general.

notafan

Maybe it depends on the bank, when i worked for them you could reverse it on the day it went out and even the day after - although it would look strange on the statement if it was brought back the same day - it would show as brought back and then paid out. You could also see what was going the day before and stop it then.

If its gone out by accident the direct debit guarantee should let you have 'a full and immediate refund' although i've generally found my bank likes to make you go to a branch for that which is a bit of a pain so its hardly immediate.

I hate direct debits because they always involve the words on or around and when companies decide to change things and not tell you or they make mistakes and take more then they should -they are like an open invitation for companies to just raid your account whenever they feel like it.

They have their uses don't get me wrong but I prefer standing orders because at least you have the control over the day and the amount.

Katharine

My question does make sense, I can only assume from the fact that some people have no idea what I mean that it is as much a surprise to them as it is to me.

So the answer to my question is that if it is not returned on the same or next day then it's not going to be.

dunstonh

It used to be that the latest your could reverse a direct debit was midday of the following day and then only in certain circumstances. For most things you could reverse it same day only. I have been out of banking for a while so it may be different now.

Xbigman

Katharine wrote: »

My question does make sense, I can only assume from the fact that some people have no idea what I mean that it is as much a surprise to them as it is to me.

So the answer to my question is that if it is not returned on the same or next day then it's not going to be.

Your question needs clarifying for it to make sense.

If you are reversing a DD using the Direct debit guarantee there is theoretically no time limit but in practical terms anything over two months and you'll have a fight on your hands with the bank.

If you are talking about a reversal due to insufficient funds the answer is midnight the next business day.

If you are talking about a reversal due to cancelling the direct debit at the last second then usually it doesn't get reversed, you need to get a refund direct from whoever took the DD.

If its some other circumstance you'd best let us know.