the Direct Debit guarantee
Naturally, with so much power in the hands of the merchant, the customer needs to be protected, and this comes in the form of the Direct Debit Guarantee.
This Guarantee protects customers in the event of the wrong amount being taken, whether in error or fraudulently. In these instances, the customer is entitled to a full and immediate refund from their bank.
The Guarantee also entitles customers to be informed of any changes to their Direct Debit, before they come into force, and allows them to cancel the Direct Debit at any time.
All of these protections are enforced by the banks and refunds and cancellations happen without any discussion with the merchant.
Any merchants who don't fulfil the notification requirements can be banned from the scheme.
Direct Debit Guarantee
- The Guarantee is offered by all banks and building societies that accept instructions to pay Direct Debits
- If there are any changes to the amount, date or frequency of your Direct Debit the organisation will notify you (normally 10 working days) in advance of your account being debited or as otherwise agreed. If you request the organisation to collect a payment, confirmation of the amount and date will be given to you at the time of the request
- If an error is made in the payment of your Direct Debit, by the organisation or your bank or building society, you are entitled to a full and immediate refund of the amount paid from your bank or building society
- If you receive a refund you are not entitled to, you must pay it back when the organisation asks you to
- You can cancel a Direct Debit at any time by simply contacting your bank or building society. Written confirmation may be required. Please also notify the organisation.