How do direct debits work?

Scoobysnacks

Some time over the last 2 weeks, 2 direct debits have been set up for the Student Loan company from my Halifax account. There is no amount and no dates as yet.

I do owe the SLC money from years ago but they have never had details of this particular account as it my account that I use only for small household purchases and only has £50 going in to it every month.

I am currently receiving a grant (not loan) as I am studying PT at university but this goes into a Santander student account.

I would like some clarification on how DD are set up as I thought that I had to set it up myself. I will be ringing them in the next few days to find out what these DD's are for. I have no means of paying my old loan off at the moment as I am on income support and have been deferring the payment until I graduate and get a job.

MoneySaverLog

You would have filled in a Direct Debit mandate and sent it off to the SLC. They would have then sent this on to your bank.

Once set up the SLC can then make debits out of your account for however much they like, subject to the DD safeguards of cause.

Scoobysnacks

Thanks MSL. I don't remember filling out any forms but I must have. I will still phone them to find out if they intend to take any money out, though they shouldn't as I have definitely deferred this year and will continue to do so for the next 2 years.

Anthorn

These days you don't actually have to fill out a form, a direct debit can be authorised electronically or as a condition of a contract. When you supply your bank details you have authorised the direct debit.