A Direct Debit is a payment that you must authorise a company to take from your account on a regular basis on agreed dates. The amount can vary but the payee (the company or person you are paying) must notify you in advance each time this happens.
The Direct Debit Guarantee
This is designed to protect consumers in the following way:
- If there are any changes to the amount, date, or frequency of your Direct Debit the payee company must notify you in advance.
- If a payment error is made by the payee company, or your bank or building society, you are entitled to a full and immediate refund of the amount paid. If you receive a refund you are not entitled to, you must pay it back when the payee company asks.
You can cancel a Direct Debit at any time by simply contacting your bank or building society. Written confirmation may be required. You should also notify the payee company.