Direct Debits

partridge_pie

Hello

Anyone not believe in Direct Debits unless absolutely necessary? Is it better to try and pay as many bills when due by planning in advance? Plus the 'being in control' issue comes into play?

josiebabie

I pay pretty much EVERYTHING manually via internet banking, but you must be VERY disciplined and organisedto do this!

shezam

I enjoy paying my bills my Direct Debit. Takes the hassle out of me having to contact people. I feel I am completely in control as I can cancel my DD at any point and if an error occurs i'm covered by DD guarentee. I'm too much of a scatter brain to remember what dates to pay folk, have all my DD coming out 10-16th of the month. It's just easier for me that way!

Splendora

Hi, i changed the things that came out on the 'wrong days' to standing order even my mortgage because i could then pay everything the day after pay day, this has helped me be more in control!

gilligansyle

If the company charge for not using DD I use them, otherwise I either do standing order or direct payment via internet banking. I like to be in control of my money, it was bounced DD's that got me into the mess in the first place.

This mainly works for me, as I am not on a monthly salary, so can pay when I get paid, which in most cases mean companies get paid early.

Gordon_Hose

I pay my gas, electric and phone bill online. I prefer being in control as I've had some bad experiences with people messing up DD's.

timbstoke

Most of my bills are on DD. Cards and catalogues have DDs set up for minimum payments, which means I can just pay extra on payday without worrying which month the payment will get assigned to - important when you get paid 4-weekly. Also, the niggling question of "Am I ABSOLUTELY sure that all the DD's have gone out this month?" means I tend to watch my spending a little more so I have a safety buffer just in case. Anything left over on payday can then go directly towards a card.

Naf

I refuse DD on principle that it takes the control of my money out of my hands, and having worked in a bank I know the hassle the DD Guarantee causes. All of my bills come out by SO on the 1st of the month, this has meant that some I am now effectively paying in advance, but the SO only covers minimum amounts so this doesn't cause any problems.
Having had problems in the past I have managed to argue with Orange that I don't get charged any non DD fees, even though I don't pay by DD, and my BT bill is always paid up by SO before the bill is produced, so although I have a DD set up, it'll never get used; so I avoid the fee with them too.

The issues are:
1. Dates of payments; with DDs this is out of your hands, it ought to be based on your agreement with the company, but the DD technically gives them the opportunity to take it any day they like. This means if (by error presumably, but not necessarily) they try and claim it on a date when funds aren't there, you'll be charged by your bank either a paid or unpaid item fee, and possibly start being charged unauthorised overdraft fees. Although you're covered by DD guarantee, it can take up to 2 weeks to get the funds back, the whole time accruing charges and being without cash to live on; then your bank won't refund the charges as they haven't made an error, you have to try and argue with the company to get them to refund - good luck.
2. Amount of payments; If the company takes an incorrect amount you will very likely end up in the same position as above. OR they could take too little for years, then send you an enormous bill for the shortfall; even though its their mistake. DD guarantee doesn't cover this one.
3. Number of payments; There have been situations (I was on the bank's counter when this happened a few times) where companies take their customers' DDs twice over in the same month.
4. Available options; with DD you're only given a limited number of options by the company. For a CC you're allowed full balance or minimum balance. For your energy bills you just have to pay whatever they say. If you want to do anything else you have to make all your own payments in addition. Choose to pay by SO or Online Banking you get total control.

timbstoke

Naf wrote: »

Although you're covered by DD guarantee, it can take up to 2 weeks to get the funds back, the whole time accruing charges and being without cash to live on; then your bank won't refund the charges as they haven't made an error, you have to try and argue with the company to get them to refund - good luck.

Sounds like the bank you worked for didn't honour the DD Guarantee at all - it promises a full and immediate refund by your BANK, not the company. The bank has a responsibility to immediately refund the DD, and then THEY chase the company to refund them. Thankfully, that's how it's worked the few times I've had to call on it (kudos to First Direct)

Naf

timbstoke wrote: »

Sounds like the bank you worked for didn't honour the DD Guarantee at all - it promises a full and immediate refund by your BANK, not the company. The bank has a responsibility to immediately refund the DD, and then THEY chase the company to refund them. Thankfully, that's how it's worked the few times I've had to call on it (kudos to First Direct)

They claim to honour the guarantee, and customers did get the money back. But it could take two weeks (I have no idea what happened behind the scenes). I've no experience of it elsewhere, and am unlikely to as I refuse to use them now anyway.