The Unpaid Cycle
When a Direct Debit is not paid by the paying bank a reason code will be returned to Bacs on the day of presentation (Day 3 in the example below) *or exceptionally on the following working day via Bacs using ARUDD.
This cycle is detailed in the table below:
Service users learn of failed direct debits via an ARUDD (Automated Return of Unpaid Direct Debits) report up to two days after the collection. The exact timing for receipt of this report can vary as it is dependant on the paying bank reconciliation timescales. However, this is never longer 3 working days after the collection. The ARUDD report will inform you about which Direct Debits collections have failed and remain ‘unpaid’ along with the reason why this has occurred.