How to cancel a direct debit

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.

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 neither 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 this is by Internet or phone, written confirmation may be needed too.
• You should also notify the organisation receiving the direct debit in writing.
• 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.

Frequently asked questions

• What information do I need to provide my bank when cancelling a direct debit?

  • 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).

• What happens if I cancel the direct debit without the approval of the company?

  It depends. You only really need to contact your bank about stopping the direct debit. Sending an email or letter to the company is advised but not necessary.

  However, if you have an ongoing agreement with the provider then they can chase you up for money. For example, if you’re 8 months through a 12 month phone contract.

• How long does it take to cancel a direct debit?

  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.

• What happens if my cancellation failed?

  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:

  • Contact your bank. While you’re advised to send a letter to 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.