What Will Happen Here (Bank)?

[kmo0416]

I created a new bank account for the purposes of earning money via bank-switching. With some banks, you need to set up direct debits to qualify for their switch offers which is what I did. I have now received the money from the bank that I switched to and decided to close down the account. However, my direct debits are still attached to that account which has no money in it. Also, the direct debits are due to charge today.

So, what will happen when there is no money for the direct debits to charge?

By the way, the direct debits are £1/monthly subscriptions to a charity not something serious like utility bills.

They could be rejected and your account may incur bank charges. Just transfer some money in there to cover the direct debits.

Depends on the accounts terms and conditions. They may just reverse them and not pay, they may pay them and take the account over drawn. They may charge a fee for either of these options, they may not. All depends on the T&C’s of the account.

But I cannot deposit any money as the bank account is in the process of closing down. I heard somewhere that when a bank account is fully shut then old direct debits are cancelled but I am not sure.

I always cancel a direct debit on both sides to be sure - with my bank and with the company. You’ll need to check with the bank about any charges.