To think that an organisation doesn't need 10 working days to cancel a direct debit?!

[MissB83]

I am moving house. I discovered today that exchange of contracts is happening and we are completing on 9 April (yay!)

As a result I began a ring round of various providers (water, electricity, insurance etc) to cancel my contracts or move them, particularly as we are completing towards the start of a month and I didn't want to be paying for a whole month.

My dual fuel provider, Eon, said that they couldn't stop my direct debit going out on 1st April because they need 10 working days to cancel it?! Why? Online banking can be done in minutes. 10 working days is a fortnight or more! All the other providers just got it sorted. They also said I was £50/60 in credit anyway! I couldn't have told them any sooner because the completion date wasn't locked down.

Does this not seem a bit crazy? I have cancelled the DD through my bank but apparently this won't work

It will work. I do this on occasion if I'm broke it will show as being debited and then it will go back in to your account.

They are right by the way. They call for the debit in advance so its too late their end but not yours.

I set up direct debits and have to legally give the customer ten working days notice. I cannot cancel them in this time but they can. I’m guessing they’re not telling you that so three get your cash!

A lot of companies complete their BACS runs to claim from direct debits well in advance, they can’t stop them once programmed in, so will debit and then refund. If you cancel online/ at the bank the bank will just return it for you

The company I work for say it takes 5 working days ( we cancel it immediately we get the instruction but the back end processing between us and the bank takes the time)

If the company you’ve spoken to doesn’t cancel it immediately but sends an instruction to another team to cancel then I can imagine them saying 10 working days easily.

Cancel it with your bank, then if they try and take it the bank will stop it.

Cancel with the bank. If they pay it they have to take the fall. Can you cancel it online.

Maybe OFGEM should set rules for this. Banks taking ages to credit accounts with cheques is being changed, so this could be too.

Working days incidentally is a bit of spin designed to make things sound less bad. Ten working days is usually a fortnight.

DD is a three day payment so it’s sent on day 1 and day three it’s received.

Their quoting of 10 days is internal procedure.

I process DDs - I can cancel them personally up to 4pm the day I’m sending the file.

Your cancellation with the bank will likely do the job just fine.

What will probably happen is you’ll see it leave but it will be credited back. If you see it call your bank and they’ll refund it instantly.