21 Jun 2022

What happens if you cancel a Direct Debit without the approval of the company?

Direct Debit Cost

Experts always recommend checking in with a company or merchant before cancelling, stopping, or refusing a direct debit payment. Although banks and other financial institutions, like creditors, can dispute transactions and cancel direct debits, when the company does not know, they may still process the payment even when the method has been ‘cancelled’.

There is a lot of communication that is necessary between the financial institute and the company. Sometimes, it can take up to 10 business days for the request to process and close. To make this process smoother, first, reach out to the company or merchant that you have authorised to take payments. Usually, there is an explanation, and they can cancel the agreement with your consent.

While this is true, not all companies are easy to reach. There are a few online companies that only communicate using email and phone. When emails and phones are flooded with constant calls and messages, it can take weeks to hear a response. Instead of waiting, why not call your bank or credit card institute? Technically, they have more power, but the process takes longer!

Direct Debit Cancel Conclusion

To conclude, a direct debit payment can be hard to cancel and stop. First, though, you should call the company or merchant. If you are unsure, you can always call one of our Mortgage House specialists. When paying using a direct debit, the money is taken out of your account quickly and efficiently.

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