What is the Direct Debit Guarantee?

The Direct Debit Guarantee is provided by all banks and building societies that accept instructions to pay by Direct Debit. It is one of the main factors contributing to the success of the Direct Debit Scheme because it provides assurance to the payer that any monies taken in error by the Direct Debit Service User will be refunded immediately by the payer’s bank.

The Guarantee offers complete protection from any errors that may occur, giving payers the confidence to utilise Direct Debit to easily and securely pay regular bills, fees and donations.

Example of the Direct Debit Guarantee in action

You have cancelled your Direct Debit subscription, however, the organisation has continued to debit your bank account for subscription fees for two consecutive months after cancellation. The next move is for you to contact your bank and claim back the exact amount taken in erroneous debits from the organisation. The bank will issue you with a full and immediate refund and then instruct the organisation in question to pay them the monies owed to them. However, should it turn out in the following days that you were still under contract with the organisation, you must pay them back when they ask you to.

The Direct Debit Guarantee

• This 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 collecting the payments will notify you (usually 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.