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Direct Debit Fees

Apologies if this isn't the best place for this....

Recently received my annual subscription summary for my professional fees, and I've noted that I'm being charged £22 for direct debit administration. My direct debit details haven't changed, is there a limit on what a company can charge for DD admin? Or a way of querying how exactly my £22 has been calculated? Or can they just charge what they want?

Comments

  • agrinnall
    agrinnall Posts: 23,344 Forumite
    Combo Breaker First Post
    It seems like sharp practice, there won't be any admin if your details haven't changed. Is there any other way you can pay the fees?
  • rob_o4 wrote: »
    Apologies if this isn't the best place for this....

    Recently received my annual subscription summary for my professional fees, and I've noted that I'm being charged £22 for direct debit administration. My direct debit details haven't changed, is there a limit on what a company can charge for DD admin? Or a way of querying how exactly my £22 has been calculated? Or can they just charge what they want?


    Was it a DD against a credit card? If so, was it a company or personal CC?
  • agrinnall
    agrinnall Posts: 23,344 Forumite
    Combo Breaker First Post
    Was it a DD against a credit card? If so, was it a company or personal CC?


    A DD can't be against a credit card, it would be a CPA, a different beast entirely.
  • ReadingTim
    ReadingTim Posts: 3,987 Forumite
    Name Dropper Part of the Furniture First Post
    Suspect your professional institute is mainly passing on higher fees imposed by the bank or credit/debit card issuing company, although it could also be an increased admin cost - wages of the admin staff etc.

    Furthermore, given they're a professional body their purpose is to exist for the benefit of members - it's not as if they're making money for shareholders. But you could always ask - they'll have an AGM, so go along to that and ask the question.

    Alternatively, if you feel that strongly about it, stand for election yourself and campaign on a platform of lower membership fees - I'm sure they're always on the lookout for new committee members!
  • They do have some extremely expensive offices in central London to fund however....

    With over 100,000 members, even if say 50% paid by DD, that's still over a million pounds, can get plenty of admin staff for that

    Anyway, have asked how they calculated the £22 fee....
  • Direct Debit should be the cheapest form of collection for an organisation. Normally they charge credit card fees which is way more expensive. I have never heard of a DD admin fee and they will be making a good margin on £22. Collection costs should be part of their business model and not an admin fee on DD. Bad Practice! Regards
    DirectDebiter
  • Normally they charge credit card fees which is way more expensive.

    No, they don't, because they can't.
This discussion has been closed.
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