# best way to cancel a direct debit?



## eddie7

could anyone tell me the best way to cancel a direct debit, the bank told me i would have to get the company to cancel it from their end, is this true?


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## liteweight

*Re: direct debits*

I'm afraid so.


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## tolkarovers

*Re: direct debits*

send a letter to the bank and the company telling them to cancel it. I usually just send a letter to the bank stating that you have informed the co. and to cancel it.


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## FUJITSU

*Re: direct debits*

A written instruction to your bank is enough to cancel a direct debit, but if you don't inform the company calling the direct debit they may continue request payment each month which will bounce and may result in you receiving bank charges.


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## liteweight

*Re: direct debits*



tolkarovers said:


> send a letter to the bank and the company telling them to cancel it. I usually just send a letter to the bank stating that you have informed the co. and to cancel it.



I always thought this was the case too but my bank refused to accept this earlier in the year. Conversely someone kept paying me by direct debit and the bank kept accepting it, despite phoning, writing and eventually calling in, in person!! I thought that the people must have had money to burn...I kept contacting them too. Apparently their bank wouldn't allow them to cancel the DD, and said I had to. This went on for two months. Eventually it was sorted by letters from me/them to both banks! Very frustrating.


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## Bgirl

*Re: direct debits*

Direct debits can only be cancelled when the person who has given a third party permission to debit their account rescinds this with the third party.  A bank can return direct debits til kingdom come on the instruction of an account holder but the third party can still debit an account until the account holder cancels directly with them.  People often get Standing Orders and Direct Debits mixed up.   A standing order is where you instruct a bank to credit money to a third party on your behalf.


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## redchariot

*Re: direct debits*

You should be able to cancel it yourself. in fact I have done it myself a few times even though I instruct the company sometimes also.

For example I wanted to stop making payments on my pension with New Ireland for 6 months and I wrote a letter to them stating my wishes (I was entitled to take a payment holiday). I even followed up with a phone call to ensure that they recieved my letter (and they did). To be on the safe side, I cancelled the Direct Debit at the bank and lo and behold a few weeks later I was contacted by New Ireland wanting to know why they could not direct debit my account, even though I sent a clear letter stating that I wanted to stop my payments.

Moral of the story is, always cancel your own direct debits to be sure. It is also curteious to inform the company who is doing the debiting but you cannot rely on them to cancel the direct debit.


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## Crugers

*Re: direct debits*

The Irish Payment Services Organisation Ltd. (IPSO) is the umbrella body for payment services for financial institutions in Ireland.
There are 2 types of direct debit schemes "" and "".
Each scheme has 3 parties involved The Payer, The Payer's Bank and the Originator (who must agree sponsorship with a Sponsoring Bank).

The main difference AFAIK is that DD plus can be initiated without a signed hard copy of the *D*irect *D*ebit *I*nstruction.

Guidelines for both schemes state that "_The Payer's Bank branch must inform the Originator of any amendments that the Payer makes to the Original DDI..._" and "_Typical amendments arise in circumstances such as ... Cancellation of the DDI by the Payer..._".

Guidelines for both schemes also state that "*You can cancel the Direct Debit Instruction in good time by writing to your Bank*"

However the specimen DDI in both guidelines includes amongst other statements that you sign up to, that you (The Payer) will "*...duly notify the Bank in writing if I wish to cancel this instruction. I shall also so notify Originator of such cancellation.*" 

So the guidelines say that if you (The Payer) write to your bank in good time that you wish to cancel the DDI, then your Bank should inform the originator and the job should be done.
But on the original DDI, you (The Payer) sign up to inform both your bank and the originator of any amendment including cancellation. 

If  (the umbrella body for payment services for financial institutions in Ireland) can't provide clear, unequivocal guidelines, is it any wonder that trying to cancel a DD can be such a hit and miss affair? 

Bottom line is that if you write to your bank and the originator cancelling the instruction and if you are sure that both parties receive your instruction then in theory, if any further debits are processed your bank should reimburse you promptly...


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## ClubMan

*Re: direct debits*

Whatever about what the ins and outs of what the rules may or may not be I personally have never had any problem cancelling _DDs _by (a) going to my bank branch and signing an authorisation letter/form asking them to cancel it at their end which they always did there and then on their computer system and (b) writing separately to the payee telling them that I wanted to stop payments under the _DD_. Always put these instructions in writing to both parties to avoid confusion and to have some come back if problems do arise.


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## Guest124

*Re: direct debits*

All this nonsense from Bank,companies etc. is why I have no Direct Debits operating. I only ever had one Standing Order for my SSIA.


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## ClubMan

*Re: direct debits*

I too prefer to minimise the number of _DDs _and keep control over payments using online banking etc. I started doing this a few years back during a period of unemployment when I wanted to be a bit more careful about cashflow issues and the habit stuck thereafter. I used to have utility bills etc. on _DD _but stopped that and now also have just the one also for my _SSIA_.


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## Johnny1

*Re: direct debits*

I signed a direct debit last year and cancelled it a month after by informing the bank and the company. On my last bank statement the company have taken two more payments which is a year on. Can anyone explain this. I still have to check it at the bank as it is along weekend.


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## infocal

*Re: direct debits*

You can cancel a direct debit by writing to your branch


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## ClubMan

*Re: direct debits*



infocal said:


> You can cancel a direct debit by writing to your branch


Not necessarily. You need to also cancel it with the payee. And even then (as mentioned above and previously) it looks like this may not be enough in some cases! Whatever the ins and outs/rights and wrongs are in this context it's clear that some people have attempted to cancel DDs with both the bank and payee and yet have still had additional payments rawn down after this. Personally I've never had any problem cancelling them with both parties in writing.


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## joolsveer

*Re: direct debits*

I have been in contact with the financial regulator and IPSO about direct debits.  IPSO say that the customer has an absolute right to cancel a direct debit by writing to his bank branch.  If the bank continues to pay the DD they will be liable for the loss.  The rules have not changed.  IPSO is not regulated by the financial regulator and is owned by the banks.


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## DublinTexas

*Re: direct debits*

PTSB actualy gives you an option in open24 to cancel any direct debit you might have.


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## Joe1234

*Re: direct debits*



DublinTexas said:


> PTSB actualy gives you an option in open24 to cancel any direct debit you might have.



So do Bank of Ireland.  I did it a few weeks ago, but also  informed the company.


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## nlgbbbblth

*Re: direct debits*



redchariot said:


> Moral of the story is, always cancel your own direct debits to be sure. It is also curteious to inform the company who is doing the debiting but you cannot rely on them to cancel the direct debit.



Moral of the story is - have as few direct debits as possible.

because direct debits mean that the company / service provider has control over when they get paid - not you.

I've worked in financial services for 13 years and have seen the hassle and misery direct debits can cause when they are processed incorrectly by the originator. 
As a result I pay all my bills bar one by my own means - internet banking, post a cheque etc.

Yes, the Direct Debit Indemnity scheme means that people will be re-imbursed - but not instantly. Frequently people are left with their account in a mess / without funds because, for example, an insurance company has decided to take out the full year's premium instead of monthly instalments.


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## Happy Girl

I cancelled a direct debit with Permanent TSB online banking couple of moths. No probs.


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## Klesser

If your with BOI online you can easily cancel your direct debit going in to your current account, then your direct debits come up and you can just select to cancel one.  Easy


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## Towger

How do you cancel a Originator Plus (OP/) Direct Debit. There is no mandate to cancel/delete from the computer system. 

Towger.


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## bond-007

Simple answer is with great difficulty.

I had a problem with BT and I cancelled each mandate in branch but they can simply generate new mandates and the cycle continues. Had to threaten legal action before they would stop. 

Originator Plus should be banned imho, It gives the originator too much power.


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## Towger

So it is much as I thought, the banks have not yet bothered to add the capability to 'Block' a OP/ DD, even do their own rules allow it. The UK (BACS) version of the system works differently. The originator first has to send a 'electronic' mandate to the bank to set up permission for the DD. The Irish version just requires 'OP/' to appear in the DD’s on the narrative field.

Towger.


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