Canceling Direct Debits – 5 Things You Need To Know

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Do you want to cancel your direct debits? If yes, you are in the right place. In this article, we will discuss some of the essential things you need to know about them. Direct debits are beneficial in many ways. However, some people cancel them after some time due to various reasons. The main thing that confuses people is the cancellation process. If you are in a similar situation, you can read this article to get familiar with it.

Technology has indeed made people’s lives more convenient. Nowadays, one can do anything online, whether it is a bill payment, shopping, booking tickets, and more. You might be surprised to know that you can cancel your direct debits online as well. Many websites and platforms provide these services to customers. Well, confusion might arise while selecting the best one. But you can consider 123opzeggen if you are looking for a reliable platform. You will never get disappointed with their high-quality services.

It is crucial to know everything about direct debit first. Otherwise, you won’t be able to start the process of cancellation. So, without wasting any more time, let’s get started with the process.

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What is a direct debit?

A direct debit allows the bank to make the transactions from your account whenever there are due payments. Some people think that it is the best way to manage their unpaid bills.

If you consider it, you don’t have to worry about any of your bills. They will get paid automatically on time.

How is a direct debit used?

The most common things in which direct debit is used are as follows:

  • Regular bills: Regular bills include electricity, water, and more. Everyone needs to pay them at the end of every month. A direct debit will help you pay them on time.
  • Fixed memberships or subscriptions: It might be possible that you have set memberships of various things. You need to pay them on time. Otherwise, you won’t be able to continue the activities.
Source: lovemoney.com

Why should you use direct debit?

Direct debits are beneficial in many ways. You can read the following points to understand their benefits:

  • A more convenient way of paying bills: Have you ever delayed any of your significant bills? Well, it might have happened to you. These problems won’t occur with direct debit. All the payments will get deducted from your bank account at the right time.
  • Incentives: Some organizations provide incentives for paying by this method.
  • More protection: People often hesitate while making an online transaction. This method of payment will give you more security.
  • Spread your costs: While using this method, you can spread your costs according to your requirements for a period.
  • Guaranteed payments: All the transactions made through direct debit are secured. You don’t have to worry about whether they will be successful or not.
  • Help save money: The best thing about using this method is that it helps save your money as you don’t have to pay the late fees. Well, it is beneficial for both businesses and the customers.
  • Help save time: If you want to save your time, you can simply use this method. You don’t always have to keep a record of your pending bills.
Source: flo2cash.com

What are the things to know about the cancelation of the direct debits?

There are four critical things that you need to remember while canceling this method. 

  • Cancel them anytime you want: The best thing about them is that you can cancel them anytime. There is not a specific rule regarding the same. You can quickly contact your bank and talk to them about the cancelation process. They will make you understand it in detail.
  • You will get notified about cancelation: Once you have asked the bank about canceling the payment method. Bank will notify you immediately either from a message or an email. Also, note that your merchant will also get notified.
  • Apply for changes within three days: If you want to change anything, you can apply for it within three days after you have received the notification. Otherwise, the bank will not allow you to apply for the changes.
  • Cancelation doesn’t cancel the contract: When you cancel a direct debit, it doesn’t mean that your agreement with the merchant is also canceled. You have to arrange the payment yourself.
  • The company can charge you extra costs: Sometimes, people forget to inform the company about the cancelation of the method. However, this irresponsible behavior might cause the organization to charge you extra money. So, you should always inform them before starting the process.
Source: GOV.UK

What are the ways to stop direct debits? 

  • Use a banking app: One of the most convenient ways to stop them is using your bank’s app. Nowadays, almost all businesses have their apps. People use them for making day-to-day transactions. So, you can easily find it out on your device. However, you need to check whether there are hidden costs to begin the process.
  • Apply for it on the web: You can also fill up a form on your bank’s website to cancel the direct debit. It might take more time than other ways. Now, you also have the option to get it done by other companies.
  • Do it by phone: Another straightforward way to cancel direct debits is by calling your bank. They will ask you for the necessary details about your account first. Also, you can share an alternative method of payment according to your preference. But it all depends on you if you want to have it or not.
  • Prepare a letter: You can also prepare a letter to submit to your bank. However, you might have to wait for a few more days to get it received by the bank. If you want an immediate cancelation, you should look for another way.

The Bottom Line

To sum up, we would like to say that cancelation of direct debit might seem like a complicated task. But if you take the steps carefully, you can easily do it. We hope you found this article informative and helpful.