cancelling direct debit.

almeria1

We have just switched our dual fuel supplier using a price comparison site. However I am unsure when to cancel existing DD or does the previous supplier shut it down ?. for any helpful answers thanks.

Hazzinho

Leave it for now, I only remove them once I get final confirmation the account is paid off in full.

mttylad

ME I'd cancel it straight away but keep the details.
If you need to pay more then make a payment but having no DD in place means that they cannot just take any more money from you and companies have been known to continue taking payments and it be hard to get it back.

Joyful

Be careful in case you are on a tariff that says you have to pay by DD. If you cancel in that circumstance they may rebill you at a higher rate.

macman

After you receive the final bill and payment is taken.
The supplier can never cancel a direct debit: only you, the account holder, can do that.
All they can do is stop drawing on it, but it remains active.

Aquamania

macman wrote: »

...The supplier can never cancel a direct debit: only you, the account holder, can do that.
All they can do is stop drawing on it, but it remains active.

Incorrect.

All direct debit collections must have an associated transaction code. This isn't usually seen by the payer, but it is supplied by the service provider and logged on the system.

Transaction code 17 is the usual one
i.e. it is used to indicate the collection of a standard Direct Debit in force, not a first, final or represented DD

However, where the service provider is aware of a final collection, they should use transaction code 19 indicating it is the final payment. The Paying Bank then marks the mandate as expired when the service provider uses this transaction code.