Direct Debit Issue

Late_To_Bed

I set up a yearly direct debit last year and stupidly forgot to include it in my budget and when they tried to take the money last night my bank refused the transaction because it would have put me overdrawn.

Some money went into my account today and I was quite surprised to see the dd had now left my account.

In times past I would have had to call the company to make a manual payment and re set up the dd.

Is this standard practice now, if you dd fails, the company tries again automatically?

If it had failed again, would I have been charged twice? (or am I going to charged at all?)

I assume I don't have to set up the dd again, and it will work as normal if there are funds to cover it next year. Is this correct?

Thanks for any help!

pmduk

Many companies will attempt to take the DD again. You will almost certainly be charged for each failed attempt

jonesMUFCforever

Are you sure it was a direct debit and not a standing order??

This is how some banks operate s/o - if no money on day 1 they will try again on day 2 etc.

Late_To_Bed

jonesMUFCforever wrote: »

Are you sure it was a direct debit and not a standing order??

This is how some banks operate s/o - if no money on day 1 they will try again on day 2 etc.

Yes, 100% sure it's a direct debit.

Always in the past when one has failed it had to be reset up

robatwork

Does a failed DD that then gets corrected quickly like this one get marked on your credit file with "the big 3"?

pqrdef

Depends who you're paying. If it's something like a donation or subscription, then you don't actually owe any money, so if they don't get it, they'll just assume you don't want to pay it and cross you off the list. But if you owe them money, they might re-try.

However, DDs are slow, so I doubt if they could retry that quickly. How do you know that the bank declined the payment?

jonesMUFCforever

I agree with pqrdef here - a d/d would not be requested next day if it failed to be paid.

bengal-stripe

jonesMUFCforever wrote: »

I agree with pqrdef here - a d/d would not be requested next day if it failed to be paid.

It might have all happened on the same day (Friday) within twelve hours or so. If the DD taken "last night" refers to the early hours of Friday morning and then the money to balance the account was transferred at mid-morning. Some banks leave the final decision, whether a DD gets definite declined until after a second check at around midday.

This might have happened in the case of the OP.

Late_To_Bed wrote: »

.....tried to take the money last night my bank refused the transaction.....Some money went into my account today and I was quite surprised to see the dd had now left my account.

Late_To_Bed

bengal-stripe wrote: »

It might have all happened on the same day (Friday) within twelve hours or so. If the DD taken "last night" refers to the early hours of Friday morning and then the money to balance the account was transferred at mid-morning. Some banks leave the final decision, whether a DD gets definite declined until after a second check at around midday.

This might have happened in the case of the OP.

Yes, this is exactly what happened.

It was for travel insurance.

At 2am they tried to take the money but it went over my overdraft limit. So it was listed as taken out, then put back in as a correction.

I had £300 put in my account the next morning and then the correction disappeared.

Do you think I will be charged?

bengal-stripe

Late_To_Bed wrote: »

Do you think I will be charged?

You should be all right!

The DD was only provisionally rejected, and the final decision was delayed until midday. If at he review stage, you still would have had insufficient funds, the DD would have gone down the plughole and you would have been charged for a failed DD.

Late_To_Bed

bengal-stripe wrote: »

You should be all right!

The DD was only provisionally rejected, and the final decision was delayed until midday. If at he review stage, you still would have had insufficient funds, the DD would have gone down the plughole and you would have been charged for a failed DD.

Is this always the case with direct debits?

A couple of times before I've had them rejected, never knew there was a "review stage"