Question about direct debits

fraser0000

Hello everyone, if you set up a direct debit with a company and on the date agreed upon for the debit you have a zero balance, will your bank account go into debt ?

Does it matter if its a current account or savings ?

If it does go into debt, how long before the bank blocks anymore out going payments.

Thank you

enthusiasticsaver

If you don't have any money then yes your account will go overdrawn. The bank also has the option to return the direct debit unpaid. Whichever happens unless you have an agreed overdraft limit there will be fees as well as interest so not advisable to do this.

sourcrates

Usually if you don't have the funds to cover a direct debt, the bank will decline the payment, no matter what sort of account it is.


It depends which bank you hold your account with, as to weather you will be charged for this or not, check your banks list of charges, and it will tell you.


A failed DD is usually re-presented within 7 days, so you should make sure you have funds available to cover the payment.
If you know you wont have the funds, then cancel the DD and pay by another method when you do have the funds, it will save a lot of hassle for you in the future.


As I said, some banks charge for failed DD`s, some don't, as they charge a daily fee which covers things like this, for example the Halifax.