Direct Debits Debate

TheDriver

We have all seen the direct debit debate here, cancelling it doesn't stop a company taking their payment etc so I notice on RTE news website, a story with the following line:

The National Consumer Agency said customers should immediately contact their banks to cancel any direct debits to this company.

It said that once a direct debit is cancelled by a consumer, the cancellation must take immediate effect.

Seems NCA has a different story to what has been said here in the past

dudara

Moved to Banking & Insurance & Pensions

dudara

Toots

Once you cancel the direct debit with the bank, then that particular direct debit is cancelled, however if the originator works using the OrigPlus system (which allows certain companies to set up direct debits automatically without having to send any paperwork to the bank) there's nothing to stop them just setting up another one and presenting for a DD with a different reference number.

AFAIK, the OrigPlus system is based on good faith that the company has your consent to set up the direct debit (might have been given on the phone or online) and is acting on your instructions to do so. However, when a dispute arises between the customer and the company or the company is a bit unscrupulous that's when complications arise. I know the old paper based system took longer and was a bit more hassle but TBH I preferred it because there was less of this sort of problems.

unclebill98

Regardless,

If you cancel a dd it's cancelled. If your bank pays it after paying it you can complain and receive a refund. This falls under the Unautorised Transaction policy of the bank.

Just make sure you can prove you cancelled it and you should be ok.