Who can cancel direct debits?

pramclub

I bank with Santander. For the second time a direct debit has vanished off my account - I've been alerted each time by a contact from the payee (different payee each time).

The bank have told me both times that the payee has cancelled the DD - payee denies.

Can payees cancel DDs? I just want to know if it's possible.

Thanks.

InsideInsurance

You, your bank, them and their bank can all cancel the DD

duchy

If a DD fails some companies will cancel them. For example a monthly payment fails due to lack of funds - is represented 7-10 days later fails again - and the company cancel it. (Real life example - that's how Sky do it)

grumbler

InsideInsurance wrote: »

You, your bank, them and their bank can all cancel the DD

Banks can do this only on their customers' instructions or if the DD was inactive for a long time.

So, ultimately it's either you or "them".

PlutoinCapricorn

Payees are certainly permitted to cancel DDs. Sometimes the payer notifies them by letter that they don't want to make any more payments but does not actually cancel the DD themself.

pmduk

Some banks will cancel DDs if they fail and the bank considers it prudent to do so.

PlutoinCapricorn

If I remember correctly, cancellation is automatic if three consecutive attempts to collect fail because the funds are not available.

InsideInsurance

grumbler wrote: »

Banks can do this only on their customers' instructions or if the DD was inactive for a long time.

A bank can cancel them, though would only do so in drastic circumstances.

Natwest for example state they cancel after 3 unpaids or if the recipient of the DD is put onto the sanctions list (though in theory the "them" bank should also cancel the DD in this case and freeze the account)

pollypenny

I wonder if the OP has had the same problem as I did.

Opened a Santander 123 Account a year ago and transferred D/Ds myself. On ringing the local council, I had a laugh with the woman on the other end, as she guessed it was Santander I was moving the D/D to and she was very used to it.

The upshot was a phone call from the council saying it had been cancelled. I rang Santander who admitted nothing, set it up again and the same thing happened the following month, with both sides claiming the other had cancelled.

That was the only hiccough with the account, though, and I am very pleased with the extra £500 I've earned.

jimjames

grumbler wrote: »

Banks can do this only on their customers' instructions or if the DD was inactive for a long time.

So, ultimately it's either you or "them".

I've had DDs disappear from my account before (part of Santander) and they couldn't explain how it had gone. I'd not cancelled it and nor had the payee.

Still no wiser what happened or how.

skintpaul

Payee can stop claiming payments, though afaik cannot cancel the actual mandate- why would they want to?