What happens if a Direct Debit fails?
It is rare for a direct debit payment to fail; however, if it does, it is essential to know what the next steps are. First, a direct debit only fails if the information is not correct. Although rare in the first place, the most common reason that a direct debit payment does not go through is if the banking information for either the company or the purchaser is wrong.
However, if you have used this direct debit before, then the other likely reason is insufficient funds. This can cause problems as there is an agreement already in place. However, if the money is not taken out of your account and the direct debit fails, the service can also cancel or be placed on a pause until payment is complete.
While it can happen to anyone, it is good to always double-check your bank account and debit card to make sure that there are enough funds. It can make you look untrustworthy if the direct debit fails.
Some money-saving tips to ensure that you do have enough funds are to pay the account in advance or place the exact amount to the side so that it is not accidentally used before the repayment is due.
Direct Debit Fail Conclusion
Direct debit fails to happen sometimes, and although it can be scary when it happens, take a breath. There are many solutions! If you need extra money to pay for services, try calling one of our Mortgage House lenders to discuss personal loans!