Canceling Direct Debits

howardlhowardl Posts: 5,120
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Can I just cancel online or do I have to contact anybody to warn them,
It's not a monthly bill, in fact it's a charity.
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  • [Deleted User][Deleted User] Posts: 12,881
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    You can just cancel online - no doubt they will write to you to ask why.
  • irishguyirishguy Posts: 22,172
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    You should actually get the business you have the direct debit with to cancel it at their end which they're legally obliged to do if you make the request. Write them a letter informing them that you want them to cancel the debit on a particular date and ask for confirmation that they will do this. Its always frowned upon to just cancel it yourself.

    If the date goes by and they're still taking out the money you can go to your bank and get them to cancel it. If you take your letter as proof that you;ve asked the business to cancel the debit then the bank will refund you any loss of cash from the date of cancellation.
  • [Deleted User][Deleted User] Posts: 12,881
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    irishguy wrote: »
    You should actually get the business you have the direct debit with to cancel it at their end which they're legally obliged to do if you make the request. Write them a letter informing them that you want them to cancel the debit on a particular date and ask for confirmation that they will do this. Its always frowned upon to just cancel it yourself.

    If the date goes by and they're still taking out the money you can go to your bank and get them to cancel it. If you take your letter as proof that you;ve asked the business to cancel the debit then the bank will refund you any loss of cash from the date of cancellation.

    If it is a business arrangement then, yes, that is the right thing to do. But it sounds like this is a charitable donation the OP can no longer afford so there is no reason for him to write to them. Sounds like a lot of hassle to me.
  • irishguyirishguy Posts: 22,172
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    If it is a business arrangement then, yes, that is the right thing to do. But it sounds like this is a charitable donation the OP can no longer afford so there is no reason for him to write to them. Sounds like a lot of hassle to me.

    True, I suppose he wouldnt get into difficulties if its charitable donations. However I had a similar set up with a charity and just sent them a quick email asking them to cancel it, 2 days letter I received confirmation that it was. I still think you're better off asking them to do the canceling.
  • davidmcndavidmcn Posts: 12,086
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    If you're not actually breaching a contract (which it doesn't sound like you're doing), just do it online with your bank and email the charity to let them know not to bother trying to collect it.
  • [Deleted User][Deleted User] Posts: 12,881
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    irishguy wrote: »
    True, I suppose he wouldnt get into difficulties if its charitable donations. However I had a similar set up with a charity and just sent them a quick email asking them to cancel it, 2 days letter I received confirmation that it was. I still think you're better off asking them to do the canceling.

    With the post the way it is right now, it is hardly the most practical option.
  • irishguyirishguy Posts: 22,172
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    With the post the way it is right now, it is hardly the most practical option.

    heh true but i did use email and i dont think they used snail mail to make the cancellation either as it was too fast.... but I suppose there's little risk if you cancel it yourself with a charity. if you have the option to cancel it via online banking then give it a go... cant see it being an issue.
  • [Deleted User][Deleted User] Posts: 1,381
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    You can't just cancel as most of the time they will simply re-instate it and keep taking payments.

    First of all call the company or write to them asking them to cancel, then contact the bank and ask them to cancel as well just incase. It isn't really anything the bank controls though it is the direct debit originator that controls it and can claim whenever they want which is something the bank can't prevent.
  • grumpyscotgrumpyscot Posts: 11,343
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    *Cf* wrote: »
    You can't just cancel as most of the time they will simply re-instate it and keep taking payments.

    First of all call the company or write to them asking them to cancel, then contact the bank and ask them to cancel as well just incase. It isn't really anything the bank controls though it is the direct debit originator that controls it and can claim whenever they want which is something the bank can't prevent.

    Rubbish! Tell your bank you are cancelling the authority of the direct debit. That's all that's needed by law.
  • SigurdSigurd Posts: 26,610
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    *Cf* wrote: »
    You can't just cancel as most of the time they will simply re-instate it and keep taking payments.

    First of all call the company or write to them asking them to cancel, then contact the bank and ask them to cancel as well just incase. It isn't really anything the bank controls though it is the direct debit originator that controls it and can claim whenever they want which is something the bank can't prevent.
    No, the bank most certainly can cancel a direct debit. Advice from BACS, the people who control the system:

    http://www.bacs.co.uk/Bacs/Consumers/DirectDebit/HelpCentre/Pages/CancellingPayments.aspx

    People often confuse direct debits with recurring payments by debit or credit card, and they can be harder to cancel. See:

    http://www.moneysavingexpert.com/banking/recurring-payments

    However, if I wanted to cancel a direct debit, I'd do it via online banking but I'd also tell the company involved that I'd done so. It's best to prevent confusion if one can.
  • [Deleted User][Deleted User] Posts: 12,881
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    *Cf* wrote: »
    You can't just cancel as most of the time they will simply re-instate it and keep taking payments.

    First of all call the company or write to them asking them to cancel, then contact the bank and ask them to cancel as well just incase. It isn't really anything the bank controls though it is the direct debit originator that controls it and can claim whenever they want which is something the bank can't prevent.

    They cannot reinstate it without getting you to sign a new DD mandate. Sigurd is quite correct.
  • TIVO_YORK99TIVO_YORK99 Posts: 317
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    They cannot reinstate it without getting you to sign a new DD mandate. Sigurd is quite correct.

    They don't have to get you to sign a DD mandate anymore, it can be done electronically.

    However, like you say, if you cancel it they can't just re-instate it without your agreement.
  • susie-4964susie-4964 Posts: 23,143
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    *Cf* wrote: »
    You can't just cancel as most of the time they will simply re-instate it and keep taking payments.

    Somebody got there before me, but you are talking rubbish. Once the direct debit is cancelled, only you and your bank can reinstate it. I changed banks a few months ago and had a couple of problems with direct debits that were supposed to be transferred, but got cancelled instead.

    Best thing to do is to contact the company/charity/whatever who is receiving the direct debit, and tell them you're cancelling it. Agree on the date on which the last payment will be taken, then after that date, cancel the direct debit yourself (it will have remained "live" on your account, even if the company's no longer taking the money).
  • [Deleted User][Deleted User] Posts: 1,381
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    susie-4964 wrote: »
    Somebody got there before me, but you are talking rubbish. Once the direct debit is cancelled, only you and your bank can reinstate it. I changed banks a few months ago and had a couple of problems with direct debits that were supposed to be transferred, but got cancelled instead.

    Best thing to do is to contact the company/charity/whatever who is receiving the direct debit, and tell them you're cancelling it. Agree on the date on which the last payment will be taken, then after that date, cancel the direct debit yourself (it will have remained "live" on your account, even if the company's no longer taking the money).

    I worked for a bank and used to do this for customers everyday! We advise that the originator is contacted immediately to let them know. I am not saying that the company will always keep taking the payments however in some cases they actually do continue to claim it. It is not the banks responsibility, the bank does not run the direct debit it is the originator (e.g the service provider like Orange) who controls it and it is them the customer has signed the mandate with, not the bank !

    Also it is the direct debit provider who sets it up, it is not something you can setup yourself manually you do have to go through them
  • [Deleted User][Deleted User] Posts: 1,381
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    Sigurd wrote: »
    No, the bank most certainly can cancel a direct debit. Advice from BACS, the people who control the system:

    http://www.bacs.co.uk/Bacs/Consumers/DirectDebit/HelpCentre/Pages/CancellingPayments.aspx

    People often confuse direct debits with recurring payments by debit or credit card, and they can be harder to cancel. See:

    http://www.moneysavingexpert.com/banking/recurring-payments

    However, if I wanted to cancel a direct debit, I'd do it via online banking but I'd also tell the company involved that I'd done so. It's best to prevent confusion if one can.

    I am not saying the bank cannot cancel a direct debit, they certainly can however it is advised you contact the provider as well as they are the ones who control the direct debit, not the bank.
  • [Deleted User][Deleted User] Posts: 2,478
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    If I cancel and the company takes another payment, the bank will get it back for me. If I ask the company to cancel and they don't, I don't have any come back. So cancel it yourself, I always do.
  • [Deleted User][Deleted User] Posts: 3,631
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    susie-4964 wrote: »
    Once the direct debit is cancelled, only you and your bank can reinstate it.
    Hopefully systems have changed since I last worked in a bank 5 years ago, but I can recall a handful of customers complaining of DDMs being reinstated without their or the bank's permission. It actually happened to me with Sky TV, back in '98.
    If I cancel and the company takes another payment, the bank will get it back for me. If I ask the company to cancel and they don't, I don't have any come back. So cancel it yourself, I always do.
    Yes, that's the Direct Debit Guarantee. I always cancel mine online myself with internet banking, so I'm not relying on anyone. I'd only ever contact the payee if there was a contract involved.
    howardl wrote: »
    Can I just cancel online or do I have to contact anybody to warn them,
    It's not a monthly bill, in fact it's a charity.
    Some (legit) charities are notorious for pestering you with calls and mail long after you've cancelled a DDM with them. Cancel with your bank online first, and then drop the charity a note telling them what you've done and make it clear you don't want any further contact from them.
  • queenshaksqueenshaks Posts: 10,281
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    *Cf* wrote: »
    You can't just cancel as most of the time they will simply re-instate it and keep taking payments.

    First of all call the company or write to them asking them to cancel, then contact the bank and ask them to cancel as well just incase. It isn't really anything the bank controls though it is the direct debit originator that controls it and can claim whenever they want which is something the bank can't prevent.

    You haven't cancelled a DD before have you?!
  • [Deleted User][Deleted User] Posts: 1,381
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    queenshaks wrote: »
    You haven't cancelled a DD before have you?!

    Yes and I have also worked in a bank. Like the poster above has said companies can reinstate. You obviously cannot see the full picture here, all I have said is YES cancel with the bank but also let the originator know INCASE they try and reinstate and claim which can OFTEN happen. This will save the customer any hassle incase it gets claimed and they have to try getting the money back.
  • [Deleted User][Deleted User] Posts: 1,381
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    bubbsy wrote: »
    Hopefully systems have changed since I last worked in a bank 5 years ago, but I can recall a handful of customers complaining of DDMs being reinstated without their or the bank's permission. It actually happened to me with Sky TV, back in '98.


    Eventually someone who talks sense! Systems haven't changed I worked for a bank very recently. Direct debits are not run by the banks and will always be run by the originator.
  • StripeysoxStripeysox Posts: 376
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    I work for a bank and when we cancel direct debits in branch a message comes up on screen telling us to advise the customer to also cancel with the company as the direct debit might be re-instated if they don't.
    Like it's been said above, direct debits are controlled by the people being paid not by the banks they are being paid from.
  • WhisperingGhostWhisperingGhost Posts: 4,762
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    They don't have to get you to sign a DD mandate anymore, it can be done electronically.

    However, like you say, if you cancel it they can't just re-instate it without your agreement.

    Err, yes they can. And they sometimes do. We have to inform customer's that they should also inform the company so that it is cancelled at both ends.

    But if the customer has cancelled it previously and doesn't owe anything else on the DD (this doesn't apply to charities obviously), and the co. take more money, the customer is covered by the DD Guarantee and can claim the funds back via an indemnity form, with the bank then claiming the money back from the company. A false claim of indemnity could have civil or legal issues for the customer.
  • queenshaksqueenshaks Posts: 10,281
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    *Cf* wrote: »
    Yes and I have also worked in a bank. Like the poster above has said companies can reinstate. You obviously cannot see the full picture here, all I have said is YES cancel with the bank but also let the originator know INCASE they try and reinstate and claim which can OFTEN happen. This will save the customer any hassle incase it gets claimed and they have to try getting the money back.

    Don't PM me just cos I didn't reply to your post! Not on and I'm not accepting it!
  • WhisperingGhostWhisperingGhost Posts: 4,762
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    queenshaks wrote: »
    Don't PM me just cos I didn't reply to your post! Not on and I'm not accepting it!

    *Cf* was perfectly right in the advice that they gave. It is recommended to cancel with both the bank AND the company.

    Any personal problems/pm issues should really not be discussed here, it should be taken up with the mods or privately.
  • queenshaksqueenshaks Posts: 10,281
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    *Cf* was perfectly right in the advice that they gave. It is recommended to cancel with both the bank AND the company.

    Any personal problems/pm issues should really not be discussed here, it should be taken up with the mods or privately.

    They Pmed to tell me to read their post, I have been on forums for more than 7 yrs and no one has ever pmed me to read their post. So no, it wasn't a personal PM. Do you think I am that mad to post a personal PM here?:confused:

    And like I told them, thanks, I know HOW to cancel DD, I am 43 and all grown up!
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