direct debit unpaid fees

Irish Steve

OK, so for whatever reason, there's not enough money in the account to meet a direct debit that comes through. Back when banking was banking, the local branch let the customer know that a direct debit had been returned unpaid.

Now, in this brave new world of online banking, automation and SEPA, if a direct debit is returned unpaid, theres NOTHING, other than a (bluntly) offensive charge of over €10 for doing very little. 

Would it really be so hard, or so expensive, to let the customer have some information about what's going on, given that the Direct Debit system can't be relied on as it used to be, there can be a number of days difference now between one month and the next as to when an item is presented.

The system knows who is on on line banking or not, so why is is not possible to send the customer a mail notification that an item, WITH THE DETAILS LIKE THE PAYEE AND SUM THAT WAS BEING COLLECTED has been returned, instead of the present shambles, which is an excessive charge for doing next to nothing, and no longer providing a service.

Another option would be to put the details of the item on the statement, with a note at the end of the details saying "UNPAID", with a line value of zero, so the customer at least knows who requested the item, and can then contact the supplier to try and sort it out. At one time, a DD went on to the account, and if it was unpaid, the item was left, but was contra'd, which at least meant that there was information for the customer. A line that says "UNPAID DIRECT DEBIT FEE" tells me nothing that I want to know, and annoys me even more with the obscene level of the charge. 

SEPA was supposed to be making things easier, from what I've seen of it in action since it  went live, the "service" to the customer has not improved at all, other than being able to send money abroad more easily, the whole process of managing direct debits has become more convoluted, and expensive, and difficult to manage at a customer level, and  the information available to the customer has not improved in terms of simple easy access to what's happening on the account.

Bank of Ireland: Tara

Hi Irish Steve,

Thanks for your post.

As you correctly mentioned, if funds are not available in a customer's account when a direct debit presents, it will be rejected and returned unpaid. We would always recommend a customer keeps a record of payment dates for direct debits they have set up. This can easily be checked online. I have outlined how to do this below.

One of the improved customer benefits of the SEPA Direct Debit scheme is, when a customer is aware that they have a direct debit due to present, but they will not have sufficient funds to pay the item, they can now use the Refuse Specific Direct Debit Payment instruction form. This will only block the next payment on that mandate. This way, the customer will not be charged an unpaid fee. We would however, recommend speaking to the company in question as there may be a negative impact from their side with missing an agreed payment.

Another option would be to call your account holding branch to speak with a Customer Advisor. The Advisor may be able to offer a temporary solution, such as an overdraft or an increase to an existing overdraft.

The description and the amount of an unpaid direct debit fee has not changed since the introduction of SEPA. This fee is advised in our Schedule of Fees and Charges brochures for both Business and Personal customers. 

If you are unsure which direct debit an unpaid fee relates to, you can check the previous months direct debits to clarify this. To do this online, please select the advanced option on the Recent Transactions page and from the ‘Show’ drop-down menu, select ‘Direct Debits/Credits. Where a direct debit mandate is signed, but has not yet presented, the originator is obliged to send the debtor (customer) a pre-notification prior to raising the first transaction. Alternatively, a representative in your branch would be more than happy to clarify this for you.

We have outlined the impacts and benefits of SEPA, for both credit transfers and the direct debit scheme here.

Thanks again for taking the time to post and we will ensure to pass on your suggestion regarding the description on unpaid direct debit fees.
Tara