Direct Debit Question

cogito

A friend of mine has told me that if a Direct Debit is unused for a year, the bank will automatically cancel it. Does anyone know if there is any truth in this?

ihateyes

cogito wrote: »

A friend of mine has told me that if a Direct Debit is unused for a year, the bank will automatically cancel it. Does anyone know if there is any truth in this?

The bank will never cancel the ddeb unless you ask them to....
Your ddeb could be an annual one off payment!

innovate

The OP is correct, there is a dormancy period after which DDs are being cancelled. I think it is presently 13 months. I.e. if your DD has not been called on for 13 months, it is assumed to no longer be needed.

grumbler

I think this depends on the bank.
In my Nationwide account I have DDs inactive for much more than 13 months. Some unused DDs do disappear - don't know if it is NW or the originators who cancel them.

Biggles

It's normally 13 months but they appear to have some discretion, perhaps depending on the type of payee.

For example, I have one credit card that I haven't used for over three years, yet the DD for that remains 'live'.

KeepFighting_2

Here is a link 13 months after the set up if no collections are made or from the last payment a new mandate is required
http://www.directdebit.co.uk/DirectDebitExplained/FAQs/Pages/InactiveDirectDebits.aspx

inthedeep

It's definitely if it has been dormant for 13 months.

Hazzanet

The standard dormancy period is 13 months, after which the DD will be cancelled by the bank. Service Users have the option to vary the dormancy period up to about 2 years if they need to, but they need to specify this when applying for their DD Service User Number:

cogito

I asked the question because my wife has been using a particular credit card which she had not used for well over a year. It was always paid in full by DDM and I wanted to be sure that it got paid on time. Thanks to all who responded.

Vortigern

cogito wrote: »

I asked the question because my wife has been using a particular credit card which she had not used for well over a year. It was always paid in full by DDM and I wanted to be sure that it got paid on time. Thanks to all who responded.

Can you view your active DD mandates in online banking? - If not, ask your bank if it's still active.

If you're not sure whether the DD is active, it would be prudent to make at least the minimum payment in advance by debit card, so your CC company can't levy a late fee.

Consider making a small purchase every 6 months on each credit card you hold, to keep the CC and the DD from becoming dormant.

Biggles

cogito wrote: »

I asked the question because my wife has been using a particular credit card which she had not used for well over a year. It was always paid in full by DDM and I wanted to be sure that it got paid on time. Thanks to all who responded.

I wouldn't think there's a problem, credit card companies are well used to dealing with this kind of thing.

I doubt they are in a hurry to cancel them, like they haven't cancelled my three-year-old one, and if they do they will no doubt resurrect it quickly enough if a payment becomes due.