Direct Debit Lodgement (the set-up of a Direct Debit)
Once the paper Direct Debit Instruction has been returned by the payer, (or authority for a Direct Debit has been taken over the phone / internet etc), the information needs to be ‘lodged’ with the bank so they will allow collections of Direct Debits to be made on the payers account by the service user. There are different ways that this lodgement can occur:
- Lodging the paper DDI
- Electronically lodging information from the paper DDI using AUDDIS
- Electronically lodging information from a paperless DDI using AUDDIS
Traditional use of Direct Debit involves lodgement by sending the paper Direct Debit Instruction to the bank. The most common problems experienced include:
Lost or delayed instructions in the post to the bank
Account details incorrectly keyed at the payers bank
No confirmation of lodgement being received, or reason for the instruction not being accepted
Since 1996, service users can lodge Direct Debit instructions electronically using Bacs’ Automated Direct Debit Instruction Service (AUDDIS). Paperless Direct Debit sign-up and AUDDIS lodgement processing remove the exchange of paper documents between payers, service users and paying banks.
AUDDIS can address some of the issues experience by postal lodgement.
Lost or delayed Instructions - Direct Debit Instructions are sent to the banks electronically & securely
Poor handwriting - Direct Debit Instructions are automatically loaded onto payers bank account, removing the need for re-keying
No lodgement confirmation - Exception reports are generated at every stage of the process
Further discussion of the different lodgement methods are contained on the next few pages.