Are there any £1 Direct Debits?

Yorkshire_Pud

More bad news. Reported on the Savings board Tesco Savings accounts change to T&C from 22nd April 2018.

DDs will all be cancelled on the above date and it will no longer be possible to set up DDs on these accounts:(

This from a booklet sent to the OP of that thread Scarecrow25, further verification awaited?

Looks like the lush green pastures of current accounts with decent interest rates are turning to tumbleweed on the parched plains of despair, or something;)

EachPenny

Yorkshire_Pud wrote: »

More bad news. Reported on the Savings board Tesco Savings accounts change to T&C from 22nd April 2018.

DDs will all be cancelled on the above date and it will no longer be possible to set up DDs on these accounts

If true then we can expect the £1 charity DD's to also vanish soon after, followed by the commercial operations (LittleDebits etc) upping their minimum DD 'charge' too.

eskbanker

EachPenny wrote: »

If true then we can expect the £1 charity DD's to also vanish soon after, followed by the commercial operations (LittleDebits etc) upping their minimum DD 'charge' too.

Only if the primary reason behind Tesco's change is an increased cost of processing DDs - while we don't know why they're doing it, I'd say that there's more than a decent chance that they're aware that the DD facility is being (ab)used way beyond what it was intended for, and isn't really needed as a funding option in the age of faster payments, and is therefore a loophole that needs to be closed, whereas the DD method of funding charities is a completely different business model aimed at ensuring regular donations, so I wouldn't see charity and Tesco use of DDs as being linked....

EachPenny

eskbanker wrote: »

Only if the primary reason behind Tesco's change is an increased cost of processing DDs - while we don't know why they're doing it, I'd say that there's more than a decent chance that they're aware that the DD facility is being (ab)used way beyond what it was intended for, and isn't really needed as a funding option in the age of faster payments, and is therefore a loophole that needs to be closed, whereas the DD method of funding charities is a completely different business model aimed at ensuring regular donations, so I wouldn't see charity and Tesco use of DDs as being linked....

I'd be fairly confident the Tesco decision wouldn't be about increased costs of processing DD's.

But in terms of charities it is all about volumes and numbers. On the demand side most of us have tens of DD's linked to various Tesco accounts. There's hundreds if not thousands of us. On the supply side there are a few charities offering £1 as a minimum amount (a limitation which requires regular threads to remind people which ones exist).

The DD's need management by the charities as people set them up, switch accounts, and close them down.

Sooner or later people will individually set up dozens of £1 DD's with (say) the Dog's Trust using identical names and postal addresses even if the bank accounts differ. It will get noticed, then stopped.

And that will happen even quicker if processing £1 DD's takes up a disproportionate amount of time - either distracting from the charity's core purpose, or in them dealing efficiently with DD's set up for 'real' donations.

eskbanker

Ah right, I see your line of thinking here now, i.e. you're making an assumption that large quantities of people using Tesco for low-value DDs to themselves will instead switch to using low-value DDs to charities instead (and that charities will be unhappy about this)! I also think that "most of us have tens of DD's linked to various Tesco accounts" is another massive assumption but for all three, nobody really knows the truth so it's just speculation really....

Anyway, I have no desire to get dragged into the attritional debate about the putative costs of DDs to charities so will leave it at that!

Ashen

EachPenny wrote: »

The DD's need management by the charities as people set them up, switch accounts, and close them down.

Sooner or later people will individually set up dozens of £1 DD's with (say) the Dog's Trust using identical names and postal addresses even if the bank accounts differ. It will get noticed, then stopped.

And that will happen even quicker if processing £1 DD's takes up a disproportionate amount of time - either distracting from the charity's core purpose, or in them dealing efficiently with DD's set up for 'real' donations.

For those with a need to replace Tesco DD's, these are overwhelmingly going to be long-term DD's, not temporary ones. For the cost (and thus consequences) of said ongoing DD's, you're still relying on your *completely unevidenced* opinion as if it were fact.

Lumanous

Excuse me while I bypass the charity element of this thread.

Can I ask why a £1 is beneficial to the person themselves? I saw something in relation to the current account but what is the reason, is this covering t&cs meaning someone needs some form of direct debit for the account to be kept active?

Just curious as for the reason...

Ed-1

Lumanous wrote: »

Excuse me while I bypass the charity element of this thread.

Can I ask why a £1 is beneficial to the person themselves? I saw something in relation to the current account but what is the reason, is this covering t&cs meaning someone needs some form of direct debit for the account to be kept active?

Just curious as for the reason...

Most of the current accounts that pay higher interest and rewards require 2 direct debits to be paid out eeach month otherwise it's not paid.

Lumanous

Ed-1 wrote: »

Most of the current accounts that pay higher interest and rewards require 2 direct debits to be paid out eeach month otherwise it's not paid.

Thanks - wasn't aware of that

camelopardis

No_6 wrote: »

are you that mean
ie £12 to Oxfam

?

no .. I'm a money saver .. hence why I'm posting on Money Saving Expert