Direct Debit

In banking terms, A Direct Debit is an order or instruction from a banks customer, usually to their own bank, giving permission to a company or entity to request certain amounts from their bank account. This has one stipulation neing that the customer was given previous notice and dates of the amount of money that needs to be collected. Around 16,000 organizations use Direct Debits for collecting a variety of regular and occasional bills including utility payments, insurance, council tax, mortgages, loans and subscriptions Direct Debit is widely used in countries such as Australia and is known as BSB. The reassurance of knowing that every Direct Debit is protected by three main safeguards: an immediate money back guarantee from the bank or building society if an error is made, advance notice from the organization if the date or the amount of the Direct Debit changes and ultimately, the right to cancel.