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What is a Direct Debit?

Home/What is a Direct Debit?

Direct Debit payments are made automatically from your bank account to your supplier on a pre-arranged date either each month or each quarter. You must have either a bank or building society account to operate a direct debit payment scheme. You will also need to complete a direct debit mandate, which your new supplier will forward onto your bank.

Direct Debit payments are protected by the Direct Debit Scheme, which means that:

  • You can cancel a Direct Debit at any time by writing to your bank or Building Society;
  • The supplier must give you prior written notice, usually 14 days, if they want to change the date or the amount of the payment;
  • If your money is ever collected incorrectly, your bank or building society will give you a full and immediate refund, even if the supplier made the error.
August 27th, 2017|