From paying for electricity bills to your phone contract, direct debits can be a hassle free way of managing your finances.
Yet, if you fail to stay on top of them, they can be a leech on your account. You may end up paying for that gym you never go to until you’re old and grey.
So plug the drain on your account and save your money for the things that matter. See our steps for cancelling a direct debit below.
Audit all of your direct debits
First things first, you have to root out those pesky direct debits for services you no longer use or need.
Most online banking pages have a section showing direct debits and standing orders, so this step might only take a second.
It might be equally quick and painless to call up your bank or building society, or head into a branch and ask for a list of your active direct debits.
If none of these steps work, then you can definitely get a year’s worth of statements from your bank. Scan through them to find any regular payments out of your account.
Contact your bank and cancel the offenders
Once you’ve worked out which direct debits you want to banish from your life, the next step is actually cancelling them. These are the basic steps you need to take:
Notify your bank that you wish to cancel a direct debit. If you do this online or over the phone, written confirmation may be needed too.
It’s also worth notifying the organisation receiving the direct debit.
Your bank or building society typically needs a day’s notice before the payment is due to be paid.
Cancelling the direct debit won’t stop the goods or services being delivered, so arrange an alternative payment method or contact the company to cancel these.
If you have any further questions about cancelling direct debits, such as what information you might need to send to your bank, or how long it will take to cancel, then check out our FAQs below.
What happens if I cancel the direct debit without the approval of the company?
It depends. If it’s a direct debit that you have a right to cancel then you only really need to contact your bank about stopping it.
While it’s not necessary to let the company know you’ve cancelled your direct debit, you must make sure you’ve given it the correct amount of notice. Many will need at least a month’s notice and you may need to continue paying until the end of the notice period, so check before you cancel.
If you have an ongoing agreement with the provider then you must carry on paying the money until the contract is up – for example, if you’re 8 months through a 12-month phone contract. In such situations the provider is within its right to chase you up for money. While it may be irritating to have to go through extra admin to cancel some ongoing payments, you certainly don’t want debt collectors on your tail. If you don’t resolve these types of situation quickly, it may harm your credit history.
Frequently asked questions
The name of the organisation you’re paying.
Your bank or building society number.
The name or names on your account.
The branch sort code (see your cheque book).
Your customer reference with the organisation (if known).
Most banks or building societies need 24 hours notice for cancellation. So if you leave it to the last minute the money might still be taken from your account.
If you think you’ve cancelled your direct debit but a further payment has been taken, your attempt to get rid of that particular direct debit may have failed. Here’s what might have happened:
You didn’t contact your bank. While you’re advised to contact the organisation taking the money, it’s the bank you need to contact if you wish to stop a direct debit. Follow the steps in our article above if you haven’t got in touch with your bank.
Left it too late. Your bank typically needs at least a day before the payment is due to be taken from your account to cancel it.
Banking error. Potentially the bank failed to cancel the direct debit. If this is the case you are entitled to an immediate refund of the amount under the direct debit guarantee. Contact your bank if you think this has happened.
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Felix Thompson is a freelance writer at Finder. He covers everything from digital banking to car insurance and, whatever the topic, he aims to make it easy for consumers to get straight to the best deal. Felix has a postgraduate qualification in international journalism and is also a broadcast journalist. In his spare time, he loves to cycle.
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