How to cancel a direct debit
Don’t let your bank trick you into telling you there is nothing they can do until you let the company know. You have the right to cancel the direct debit directly with the bank at any time, provided it is a bank account. If you have a direct debit on your credit card, you will need to ask the company to cancel it.
Under the Code of Banking Practice, the bank must follow your instructions. He will also advise you to contact the company. If the company doesn’t know you’ve canceled, they’ll still send payment instructions to your bank. If an unauthorized payment is made, file a complaint with your bank.
But remember, if you cancel a direct debit from a business and still use their services, they will still wait for payment. Canceling the direct debit does not cancel your contract with the company, only the method of payment.
Direct debits are different from automatic payments. Direct debits allow another party to take payments from your bank account. With automatic payments, you’ve arranged for a specific amount to be paid from your bank account to someone else’s.
Direct debits are commonly used for variable amounts, such as utility bills, but can also be used for regular, fixed amounts, such as insurance payments or tariffs. If the payment varies each month, you will usually receive at least 10 days’ notice to ensure that your account has enough resources to cover it.
Setting up a direct debit generally requires signing an authorization form. Some large companies are allowed to accept authorizations online or over the phone, for example municipalities, insurance companies and energy companies. Beware of companies that ask you to sign more than one authorization form. If you sign more than one, the company can submit a new authorization to your bank after you revoke an existing authorization.