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Rules for Direct Debits

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  • 29-01-2009 7:14pm
    #1
    Gel
    Registered Users Posts: 240 ✭✭


    If as a business I was to set up a Direct Debit Scheme for my customers
    1. Can they stop the direct debit without my permission?
    2. What happens if they have insufficient funds in their account?


Comments

  • Options
    #2
    notahappycamper
    Registered Users Posts: 2,113 ✭✭✭notahappycamper


    1. Yes.

    2. The DD will be returned unpaid.


  • Options
    #3
    athtrasna
    Closed Accounts Posts: 13,420 ✭✭✭✭athtrasna


    The terms of the direct debit guarantee on a dd mandate says the customer will inform the bank and the business in writing in good time should they wish to cancel their direct debit. This is signed by the customer so in theory you can pursue a customer for payment in breach of contract if they cancel without paying. All good in theory.

    I deal with a lot of dds and les than 5% of cancellations go through the proper procedures, generally the customer cancels with the bank and there's nothing we can do without going legal. I send letters about shortfalls but 99.9% are ignored.


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