Direct Debit Guarantee
The Direct Debit Guarantee wording was last updated in July 2009, replacing both previous versions of the Guarantee. All service users must use this version of the Guaruntee and only this version. It is not permitted for Service Users to vary the wording in any way, only to insert into the Guarantee, the relevant details that relate specifically to the organisation. These are:
- Company name
- Number of days advance notice that is given before collection of the Direct Debit.
The Direct Debit Guarantee provides assurance to the payer that if an error is made in the payment of their Direct Debit by the service user or the paying bank they will be immediately refunded by the payers bank on request. It also confirms to a payer that he/she may cancel a Direct Debit at any time.
Payers must be provided with a copy of the Direct Debit Guarantee BEFORE any Direct Debit is collected from the payers account. This is typically provided at the time of initial sign and is often included on the Direct Debit Instruction. It can however be provided after initial sign up (as the Direct Debit Instruction does not have to include the Guarantee), i.e. in a confirmation letter to the Payer, confirming the Direct Debit has been established on their account.
- 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 (insert your organisation name)will notify you (insert number of) working days in advance of your account being debited or as otherwise agreed. If you request (insert your organisation name) 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 (insert your organisation name) 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 (insert your organisation name) 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 us.