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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

To cancel the direct debit

96 replies

womaninatightspot · 29/05/2017 04:35

Doing the monthly banking and have realised I am a whopping 14 quid short for the direct debits. I'm thinking that in order of priorities I should pay mortgage also building, home and life insurance. It leaves me with a choice of eon (electricity) or council tax. Does cancelling a direct debit shortly before payment come up on your credit history?

OP posts:

AllMyBestFriendsAreMetalheads · 29/05/2017 08:17

I'd go with gas/electric. Then either pay the missed bill next week or get the monthly payments adjusted to account for it. There may be a charge of around £12 for a missed payment.

With our council tax, you get two reminder letters for missed payments per year and the third missed month leads to a summons which is almost meaningless but costs around £60 (or at least it did a few years ago). It will eventually go to an attachment of earnings order. I've never had people turn up at my door for council tax as they would rather take it direct from wages. I wouldn't bother for £14 though.

LIZS · 29/05/2017 08:20

Council tax is a priority debt, if you default it will very quickly escalate and the full year becomes due. Can you really not borrow £20 or find it around the house.

onesupplied · 29/05/2017 08:22

I've cancelled a direct debit before for
Insurance I no longer wanted, it took about a week and they just sent a letter with a bill attached. Didn't make a dent on my credit rating.

If it's just a few days/week I'd cancel it then call and say you must have stopped it in error.

Agree eon least important. I can't believe people saying let your insurance lapse and be careful - what if the OPs house burns down?!

MinkowskisButterfly · 29/05/2017 08:23

I would cancel the electric DD (definitely NOT the council tax), and then ring up as soon as you have some money, pay the owed DD and re-set up DD.

I have had to do this in the past - we literally had nothing extra where could take it from (we didn't - and still don't - run a car, eat out, or have coffees, food was value range etc) the electric company were very good and just took a debit card payment and re-set the direct debit (wasn't eon) - it was about a week later when I rang up.

If you do plan to do that, do it in enough time or they may try to take it out and then when it bounces you get a bank charge (I know that from experience).

nokidshere · 29/05/2017 08:31

Yes you could cancel it in online banking but if the money is owed then the company can simply reinstate it. Standing orders are set up & controlled by the customer where as direct debits are set up & controlled by the company your paying

Not true. A direct debit cannot be set up or reinstated on your account unless you have agreed it. The difference is that it is set up by the person you are paying that's all.

Original poster

womaninatightspot · 29/05/2017 08:34

I will have the money to pay it on Friday or by next monday latest and I thought it better to cancel than have the ten quid a day charge (£50 for the sake of £14!) if the bank pays it and I slide into the red or a charge if it bounces. Cancelled eon online. Will also call them and confirm.

OP posts:

eurochick · 29/05/2017 08:35

You could just have moved the date of the dd. I can do this online with my electricity and gas providers.

BarbaraofSeville · 29/05/2017 08:44

Re: Life insurance. If you have no dependents, you do not have to have it, even if you have a mortgage. That's a lie that salespeople spin to sell policies. If you died, your house would be sold, your mortgage paid off and the lender would be happy. Therefore if you are a single mortgage holder, or you have a partner/adult DCs who are not financially dependent on you, cancel the life insurance, it is a waste of money.

If you have dependents, whether on your earnings or childcare/household duties, it is a very good idea to have life insurance, but not compulsory so keep paying it.

londonrach · 29/05/2017 08:45

Ive just got my first morgage no life insurance needed here

Toysaurus · 29/05/2017 08:52

Bristol aren't reasonable and nor are NS Council who did use liberata. I remember being at court with loads of angry people who had paid their bill but Liberata said they hadn't. Waste of time money and stress.

I've tried to sort out a council tax summons before. Ridiculous thing was I'd paid the bill. I couldn't get to the office because I was at work during the day and the call centre was a two hour wait on the phone.

Always pay the council tax first.

Ameliablue · 29/05/2017 09:02

Not true. A direct debit cannot be set up or reinstated on your account unless you have agreed it. The difference is that it is set up by the person you are paying that's all.

Not true as I've had it happen to me. Obviously it could be challenged, but by that point money has been taken and further repercussions to sit out.

KitKat1985 · 29/05/2017 09:11

Is there really no other way you could claw back £14 without resorting to cancelling one of your direct debits? Do you have any points on cards or vouchers or anything that you can use to buy groceries with for example, or any old clothes or toys etc you could sell?

Noodoodle · 29/05/2017 09:12

As someone with council experience, I would say cancel the council tax direct debit, IF you can make it up next time or make the payment soon after and IF you have about a week before it's meant to go out.

You are perfectly entitled to cancel the direct debit at and decide to make cash payments at any time you like. It's council tax for the year, split into months. You know some people just choose to pay yearly and not monthly? As long as you can make it up you'll be fine.

They'll send you a letter confirming it's cancelled and a letter detailing the rest of your payments split evenly to include the one missed, so you know what to pay next time. It doesn't have to be stressful.

Noodoodle · 29/05/2017 09:14

Sorry OP, didn't see your update, and you already cancelled the gas.

Isadora2007 · 29/05/2017 09:16

I aaccidentally cancelled our council tax DD and first I knew was a letter. It was a bit threatening, but as it was a genuine error I just called and set up a new one. It meant each subsequent payment will be a wee bit higher as I missed one payment, but it wasn't an issue really.

So unless you will be short next month and having a higher CT charge will cause this all over again, id cancel that.

blue25 · 29/05/2017 09:17

i have a mortgage and no life insurance. I'd stop the life insurance for a while-it's a choice to have it or not.

specialsubject · 29/05/2017 09:20

The advice to cancel the contents insurance and just 'not break anything' shows a staggering ignorance of the bigger risks.

harderandharder2breathe · 29/05/2017 09:27

Either you or the company can cancel a Direct Debit but if you do it without telling them they'll still try and collect it and your bank will reject it.

If this is an ongoing situation, neither council tax or electricity is something you can just not pay. CT has some of the strongest enforcement powers of any debt and obviously you're fucked if they cut of your electricity.

If you skip either one this month for gods sake TALK TO the provider and ask them to let you miss this month and resechudule your payments so you pay slightly more every month for the rest of the year rather than just double next month.

Bovneydazzlers · 29/05/2017 09:29

DD payments are requested 3 days in advance - ie if they have it down to come out on Tuesday, they will have requested in on Thursday (due to bank holiday). A cancellation won't go through in time.

You can cancel a DD, the company may try setting up another (and should contact you for permission to do this) it takes circa 10 days for them between setting up a new DD and taking first payment.

Basically - you've not got time to cancel. If I were you I'd check sofas for shrapnel and sell something (clothes, toys, whatever) on a local Facebook page and deposit it at the bank on Tuesday. It's the only way to avoid charges.

Original poster

womaninatightspot · 29/05/2017 09:30

I think the thing with life insurance is the premiums would be higher if I stopped and restarted as I took it out years ago. This would of been a tight month but fine but I'd forgotten the annual Amazon prime subscription came out on the 22nd of May. I'd of cancelled it had I remembered and whilst I could probably cancel it now the refund wouldn't reach me in time. I suppose the lesson is beware annual subscriptions!
Car/ fridge/ cupboards/ freezer all full so can easily survive till next Monday in a pinch.

OP posts:

NormaSmuff · 29/05/2017 09:41

can you ask bank to let you go overdrawn?
can't you transfer from a credit card?

Judydreamsofhorses · 29/05/2017 09:46

I would ring up the Council Tax and ask them to move the payment date. Here, at least, they are very helpful, and would rather you paid slightly late than not at all. I used to work for the Council here - in a different team - and the amount of CT and rent arrears were absolutely astonishing.

AndNowItIsSeven · 29/05/2017 09:56

Dd can be cancelled the day before NOT 3 days.

Original poster

womaninatightspot · 29/05/2017 09:56

I didn't realise that direct debits were requested 3 days in advance not due out to the 1st but perhaps I've been scuppered by the bank holiday. I am going to sort out the car and empty handbags I suspect I have fortunes in loose change. Also I have some low denomination euros and canadian dollars from old holidays so will find out where best to trade those.

OP posts:

Original poster

womaninatightspot · 29/05/2017 09:58

Crossposts is it just a day before? In which case I'll be fine.

OP posts:

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