I'm fed up with dancing direct debits

By THIS IS MONEY
Updated:

 

I have requested that all my direct debits be taken on the first of each month so that the remaining money is disposable income. Annoyingly, the dates seem to change which does not suit me at all.

cartoon taking money

Do I have the right to dictate the date or am I at the behest of the people I'm dealing with? H.J., Manchester

Simon Moon from This is Money replies: When bank bosses dream of heaven they no doubt imagine a place where every transaction is via direct debit; a world where it is no longer necessary to hire staff to deal with their biggest source of aggravation – the customers.

So remember that when you agree to use direct debits you are doing your bank a big favour – just as you are when you deposit money with them.

Every direct debit you have signed will clearly show the date on which the other party is authorised to take a payment from your account. While this may vary slightly now and again to allow for bank holidays and the like, it cannot be permanently changed on a whim.

The Financial Ombudsman Service says: 'If you pay by standing order, it is up to your bank to send the payment. If you pay by direct debit, it is up to the payee's bank to call for the payment, but you will rightly look to your own bank/building society to ensure the smooth running of any direct debits.

'Mistakes and errors are covered by the Direct Debit Guarantee [which] applies to all banks and building societies taking part in the direct debit scheme. It says that:

• 'If there is a change in the amount to be paid or the payment date, the person receiving the payment (the originator) must notify the customer in advance.'

• 'If the originator or the bank/building society makes an error, the customer is guaranteed a full and immediate refund of the amount paid.

• 'Customers can cancel a direct debit at any time by writing to their bank or building society.'

You are entitled to demand an explanation as to why payments dates have changed without your agreement. If you have run into difficulties, such as having to pay bank charges, as a result of unauthorised action, then you are entitled to a refund.

Most watched Money videos