Direct Debit taken early?

Mikeyorks

ejones999 wrote: »

It is possible to have a D/D set up without a signature.

Absolutely. But that doesn't exempt the company from advising the customer of value / date etc ... at least 10 days in advance. Which appears to be the point at issue?

masonic wrote:

This is true, but can an institution retake a D/D payment if they can show they followed the correct procedure ..

In essence - yes. If the customer Bank pays out under the Guarantee -- they recover their funds from the institution Bank under the DD indemnity. If the institution consider they are wholly correct .. they will decline to re-imburse (their Bank) under the indemnity. And the customer Bank will then complete the circle by debiting the customer account (again). Which is why it is usually preferable the customer contacts the institution, in the first instance - rather than just blindly demanding their money back under the Guarantee.