Can a Direct Debit be taken late?
You won’t have to worry about your direct debit being taken late. However, there are a few exceptions. Direct debits are scheduled payments between a merchant and a user. The money is withdrawn automatically from the user’s bank account with their permission.
A direct debit is taken out late if the exact date falls on a weekend (non-business day) or holiday. When this happens, though, the merchant won’t charge before the date but afterwards on the next business day.
Since it takes time for payments to show on an account, this can delay plans and confuse users! Direct debit, though, is reliable and great for payments that are frequent and change in amount. The good thing about using direct debit, too, is that users, like yourself, get reminders sent via paper or email about the amount and the date the bank account will be charged.
Direct debit is also affordable compared to charging the payment amount on a credit or debit card. However, never make a late direct debit payment! If you take this payment off of automatic, it does increase the risk that you will pay the minimum late. When this happens, there are late fees that companies charge.
Late Direct Debit Conclusion
You don’t have to worry about late payments or penalties if you have a direct debit automatic payment set! This is an agreement between you and the merchant. Direct debit is offered as payment through Mortgage House for loan repayment fortnightly and monthly.