16 Jun 2022

Can a company charge for setting up a direct debit?

Direct Debit Cost

Setting up a direct debit account and payment service does not cost anything! If a company is charging you for setting up a direct debit, this should be a red flag. Although it is true that some companies will add extra fees, this does not mean that you will have to pay a large sum when first setting up a direct debit.

Instead, usually, online, you will be sent a form and a link to fill out that authorises the company to submit the payment through your banking institute. This direct debit system makes it easier to pay for important payments that are monthly. 

When a company requests for you to fill out a direct debit form, it does take time for the request to process. Always give yourself time to submit this authorisation before it is time to pay for the agreed product or service. If not, there is a risk that the payment will be submitted late since the authorisation and permission are pending approval. 

Direct Debit Cost Conclusion

Mortgage House experts and lenders offer borrowers the option to use direct debit services when repaying loans! This is an effective way of paying important bills and saving both time and energy! When initially giving permission, Mortgage House sends out confirmation through a contract that is easy to read. Save this contract as it is evidence that permission has been granted! Still unsure? Don’t worry, call one of our Mortgage House representatives!

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