Why is direct debit so bad? (2 Viewers)

[Lefty Frizzell]

Can someone explain it to me please?

 

[magicbastarder]

depends on the rate you're being charged.

 

[nlgbbbblth]

you're giving a third party access to your bank account - to take out what they want, whenever they want.

 

[David Kronenbourg]

i heard it was cuz they're supposedly a bitch to cancel. that's bullstink though cos i cancelled a whole bunch before i left dublin. i just wrote a letter to the bank asking them to stop the payments

 

[Lili Marlene]

If you don't make money mistakes EVER you'll be fine. I pay my credit card via direct debit and I haven't died yet

Also irish banks are more forgiving with their fees than UK banks.

i heard it was cuz they're supposedly a bitch to cancel. that's bullstink though cos i cancelled a whole bunch before i left dublin. i just wrote a letter to the bank asking them to stop the payments

some places you can cancel them with internet banking at the click of a button

 

[Lefty Frizzell]

I only have one with o2 and ulsterbank. My 12 month contract is up in March so can/should I change it so I can pay my bill manually through the website?

 

[ratmonkey]

some places you can cancel them with internet banking at the click of a button

Would that not be a standing order as opposed to a direct debit?

 

[Lili Marlene]

Would that not be a standing order as opposed to a direct debit?

nope. I've only seen it with UK banks though so dunno about Ireland.

It leads to a lot of headaches in my job though, wish people weren't so gung-ho about cancelling stuff they forgot they set up without looking into it

 

[Froog]

i had a direct debit health insurance before that i cancelled only to find out a year later that it wasn't. cost me a few hundred.

 

[nlgbbbblth]

I'd pay it manually - that way you have control.

 

[Lefty Frizzell]

Cancelled. I don't like all this financial automation.

 

[magicbastarder]

nope. I've only seen it with UK banks though so dunno about Ireland.

it's far harder to cancel a direct debit than it is a standing order. the bank will generally refuse to cancel a direct debit, they expect you to cancel it with the organisation at the other end.

my sister recently had great fun trying to cancel a direct debit which was mistakenly applied to her account - turns out it was a paperwork error in the bank.

 

[nlgbbbblth]

standing order - agreement between you and the bank

direct debit - agreement between you and the originator (O2 - NTL - etc)

cancelling the latter involves writing to the originator and sending a copy to your bank.

Originators will often present direct debits after cancellation and that's when the fun starts.

 

[nlgbbbblth]

Worst I have ever seen is a gym present a direct debit comprising two full years membership on an account that was cancelled some weeks beforehand. Cleaned out the person's account on the day of his father's funeral.

He went to pay the local hotel by laser for the food they put on for mourners only to have the transaction rejected for lack of funds. Not the sort of hassle you want at such an emotional time.

He got a refund the following week but that's not the point.

 

[Lefty Frizzell]

I just phoned o2 customer care and cancelled the DD and also cancelled it with Ulster Bank through internet banking.

Have I just entered a world of pain?

 

[maims bond]

I just phoned o2 customer care and cancelled the DD and also cancelled it with Ulster Bank through internet banking.

Have I just entered a world of pain?

More like a world of opportunity. You can now lose your bill/forget to pay it and spend the money on something useful like a tracksuit.

 

[Lefty Frizzell]

This tinfoil hat is irritating my scalp.

 

[Lili Marlene]

it's far harder to cancel a direct debit than it is a standing order. the bank will generally refuse to cancel a direct debit,

not when it's with PayPal apparently

 

[muffin]

it's far harder to cancel a direct debit than it is a standing order. the bank will generally refuse to cancel a direct debit, they expect you to cancel it with the organisation at the other end.

To cancel either a s/o or d/d, you just need to submit it in writing to the bank. While they do expect you to alert the originator that you are cancelling, they have no way of checking whether you did or not...I've seen it happen that companies just re-set them up and start taking the money again, whether you have to agreed to or not..After working in the bank I realised people were all too willing to give people their account details and sign pieces of paperr that they didn't understand.

 

[IFF]

i only have standing orders to my recollection

anytime i need to change a dd i just visit the bank and they change it tnhere and then but then again i do work in my home town so that helps as i can do it at lunchtime