I hate direct debit, because they aren't under your control - your views?

In the past you could set up 'standing orders' for regular fixed payments to go out of your bank account, these have been almost entirely replaced by 'direct debits' whereby someone can take what they like when they like, with the promise that any errors will be put right quite quickly.





Public sector incompetence in IT, raises its head again, when this went wrong.





I think DD should be abolished, with standing orders replacing them.





Your views?





http://news.bbc.co.uk/1/hi/england/humbe鈥?/a>I hate direct debit, because they aren't under your control - your views?
Direct debit is a dual edged sword. The upside: it is convenient and expedites the collection process for the lender. It also ensures that you never miss a payment that would adversely affect your credit rating.





The downside: as a consumer, if you run your budget tight...you can get caught in a situation that can cause an overdraft to your account. Resulting in expensive fees, time on the phone, and a time suck on your day.





If you are seeking to retain control, however like the convenience of not issuing checks..I recommend that you stop the direct debit and use a bank that offers a robust ';online bill payment'; system.





Upside, you retain control of when bills are paid. The bills are debited from your account and in most cases received by the payee electronically. You can monitor the activity to ensure against error. The best part, banks are more apt to provide you provisional credit for their error and refund any fees. Whereas, if a creditor pulls their payment a bit early..you are pretty much at their mercy.





If you do not have the option of using an electronic bill pay and you must have the payment directly debited by the lender, vendor, etc. Your only solution is to ensure that you retain a buffer in your account, either use a line of credit for overdraft purposes or keep a few bucks..just in case.





It sucks, but unfortunately, as consumers we do not have control of these issues when they occur, but we can implement strategies to safeguard ourselves.





Good luck.I hate direct debit, because they aren't under your control - your views?
I totally agree with you and refuse to have them. I got caught out by a DD when a company took too much money. It took me 6 months to get the money back, even with the DD guarantee. Most companies who ask for them normally will allow you to set up a SO instead if you request it.





I'm currently in dispute with my local council who insist that I set up a DD to pay council tax. I have told them that I'm willing to have a SO but they won't allow that. Because of this they class me as a ';cash payer'; which means that my money has to have cleared into their account by the 1st of the month. I don't get paid until the 1st so there's no way I can pay them 3 days earlier. This has resulted in a violation notice (I've paid three days late) so they are now threatening me with civil action. B@stards!!
DD are easy convienent and regulated. You ARE in control of them, as they should only be taken when you own the money involved. Standing orders cannot changes amounts on their own so you would always be calling the bank. If you have aproblem with DD its because you cant really afford the product or service you have asked for....
Standing orders are totally diffferent to DD, and they are still widely available.





With DD, the creditor has to apply for it monthly, and as such, can be called on any day and for any amount.





SO are for a set amount on a set day for a set duration, dictated only by the account holder.





If offered DD, say no and ask for their bank details for SO.
I'm with you 100% on that. I've been screwed by an error which ruined my finances for a month while it was sorted. Never again.
Don't use Direct Debit then.





They cannot do it if you don't authorize it in advance.
They are totally under your control. You can cancel any time you like. If you instruct your bank or building society to cancel a direct debit, and they fail to do so, then in law they have to re-imburse you.





Direct debits are payments for money you owe. Sometimes the amount can vary, e.g. telephone bills. Sometimes they remain the same,e.g. for magazine subscrptions. If a fixed direct debit changes, e.g. a magazine price goes up, then the supplier has to give you notice affording you the opportunity to cancel or otherwise.





Very often, if you opt to pay bills by direct debit, you will often get a discount. Take BT for example. If you don't pay by direct debit, they slap on an extra 拢4.00 or 拢5.00 for payment by other means, e.g. a cheque, or cash at the Post Office. I'm all for direct debits, they save me money and are toally under my control.
I despise them,Numerous bank charges on a debit due out on a monday which seem to go out on a friday previous but dated on my online banking as the monday.Also the bank are to quick to blame you before putting your account right.