How To Cancel Debit Agreement

You can cancel immediately or set a future date for cancellation. Banks (and companies that encourage direct debit payments) can first inform you that you cannot stop a debit system. You can — it`s your money and it`s your bank account. Your bank must follow your instructions to cancel a debit, unless it comes from your credit card. If you agree that someone can make a payment on your credit or debit card at a later date, the continuous payment authority, you can cancel the payment before it is made. This is the case: If you cancel a debit system, your bank processes the cancellation and contacts the company concerned. If you cancel a collection system without the company`s approval, you will know via the ADDACS message of your cancellation action. To cancel a debit system, you should usually contact your bank and the service provider. For some services, you can set up an automatic payment via your online bank instead of a direct debit. For example, by PayPal. The provider still controls the load, but you can start, stop or change the automatic payment yourself.

If a company offers you a discount on debits, ask if they offer the same for other automatic payments. The debits are convenient for paying regular bills, such as your monthly phone bill or gym membership. Automatic payment means you don`t need to remember to pay the bill and you don`t risk late charges. To order your bank to cancel your debit, you must provide the company name, account number, sorting code and account name. If possible, also provide your customer reference number to the company. The more information you provide, the sooner your bank can act. If your debit comes from a cheque or savings account, the bank must cancel your debit if you disclose it. You don`t have to contact the company you pay for (step 2).

You must complete a pre-authorized debit contract in which you give payment authorization. Depending on the financial institution, you can do so in writing, electronically or over the phone. If you set up your contract electronically or over the phone, the bank must send you a written confirmation. It must be sent from your account at least 3 days before the first payment and contains the details of the agreement.

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