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Active Direct Debit when switching current account

cable2
cable2 Posts: 4
First Anniversary First Post
Newbie
edited 8 July at 5:07PM in Budgeting & bank accounts

Hi, I am new to the forum , so I hope I am posting in the right board. I read on MSE that Active DD means one that paid within the last 13 months . Recently I switched my current account including the active direct debits that had paid out a month ago while still with the now closed account ( call it account A). These direct debits have not yet paid out since they got attached to the new account ( call it account B). I have not been very happy with my experience with the new bank (account B) and I spotted a switching cash back offer from a third bank so If I now decide to switch again to this 3rd bank , would the direct debits still be classed as active as far as the 3rd bank is concerned even though they have not paid out while linked to the newly opened account ( account B) but still well withing the 13 month window since they paid out when they were with account A? Thank you

Comments

  • zagfles
    zagfles Posts: 21,912
    Part of the Furniture 10,000 Posts Name Dropper Chutzpah Haggler
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    Probably not, I doubt bank B would know whether the DD is active or not unless they'd paid out on it. On my TSB account it showed moved DDs under "new and inactive" DDs until they paid out. So to be safe I'd wait they'd paid out with bank B. Someone else may know better.

  • flaneurs_lobster
    flaneurs_lobster Posts: 12,526
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    It's really down to the bank that has decided that it needs DDs to be 'active' to define what it actually means.

    Some are very specific, here's Bank of Scotland

    What is an active direct debit?

    An active direct debit is one that has been paid to the originator in the last 13 months.  This can be any frequency of payment such as weekly, monthly, quarterly or annual. If the direct debit has been recently set up and the first payment has not been taken this is not an active direct debit.

    Some don't define it at all (Co-op was one I was looking at this AM). If you want to know what their requirement actually is you will have to ask them (especially as you have the complication of a DD not having paid out on the account that it now sits on but having paid out on a previous account).

  • danny13579
    danny13579 Posts: 1,896
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    edited 8 July at 6:26PM

    A direct debit becomes active 3 working days after the payee instructs/mandates the payer's bank.

    A payment must be made within 13 months of it becoming active otherwise it becomes dormant (not active). This is to allow for direct debits that are only paid once a year.

    So the longest you can keep a direct debit active without having any payment taken from it is 13 months.

    As flaneurs_lobster says, some banks have their own definitions of active. If they do, they would need to define this in the offer T&Cs.

    I find this guide provides a useful explanation.

  • zagfles
    zagfles Posts: 21,912
    Part of the Furniture 10,000 Posts Name Dropper Chutzpah Haggler
    Forumite

    Watch out if you have a Halifax CC DD, my DD with them has disappeared due to them switching to VISA with new card number etc, so they seem to have cancelled their DD and will presumably set up a new one with the new reference for the new card. So at the moment I only have one "active" DD showing up.

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