Active Direct Debit?

sharpharp

Quick question...


What's the difference between a Direct Debt and an Active Direct Debit?


Anyone know if paypal qualifies as an Active Direct Debit?

grumbler

http://www.directdebit.co.uk/DirectDebitExplained/FAQs/Pages/InactiveDirectDebits.aspx

MARTYM8`

When you switch your old bank will supply your new bank with direct debits set up on the account - which may include new DDs for which no payment has yet taken.

If you are say taking advantage of a switch offer that requires two active direct debits (e.g. the new YB/CB offer, Nationwide refer a friend and the Coop) I would be careful about relying on paypal direct debits - because these are effectively initiated by you on a monthly basis. Fine for the Halifax reward account £5 - but it may not work for switching purposes.

grumbler

MARTYM8` wrote: »

... these are effectively initiated by you on a monthly basis.

And? What difference does this make? Initiated by you - processed by the company.

JesseJames_2

Was just about to ask the same question
Still not sure what qualifies as an active direct debit

Example
If a direct debit is just setup on the donor account, and the switch takes place before any payments have been taken out of the donor account, will the switching offer be given if the first payment is taken from the target account, say a few days after switching.

Or is it best to wait until a payment has been taken from the donor account first?

grumbler

"active" = "not dormant/cancelled"
As simple as that.

YorkshireBoy

JesseJames wrote: »

If a direct debit is just setup on the donor account, and the switch takes place before any payments have been taken out of the donor account, will the switching offer be given if the first payment is taken from the target account, say a few days after switching.

Yes.

Or is it best to wait until a payment has been taken from the donor account first?

That's my preferred approach, yes.

zerog

An active direct debit is one that has been set up or a payment taken within the past 12-13 months. Switching a DD also makes it active even if it has never been collected.

JesseJames_2

OK, that settles it then.
It's OK to switch with just a newly created DD without any DD payments taken out yet.

Aquamania

JesseJames wrote: »

OK, that settles it then.
It's OK to switch with just a newly created DD without any DD payments taken out yet.

Presumably you are expecting some form of cashback as a result of switching bank accounts?

If so, I suggest you carefully read the terms of such offer to ensure that such cashback does not rely upon any money actually being taken by DD.

It's best to ask the whole question from the start, rather than half a question and then jump to conclusions based on the responses given.

If you tell us which bank you have switched to, then someone may take the time to check the terms carefully for you

sharpharp

If Switching to the Halifax / Co-op switching offers, anyone know whether Tesco and Paypal classify as Active Direct Debits, even if no payment has been taken from the Currents Accounts being switched from?