When must Advance Notice be provided?
Advance notice must be provided when:
- a customer signs up to pay by Direct Debit,
- changes are made to the amount previously advised, or
- changes are made to the due date previously advised.
Are you providing the correct amount of notice?
The advance notice period is most commonly 10 working days plus postal time, but it is possible to change this if your bank agrees.
- currently 94% of all service users have an advance notice period of 10 days,
- 2% have fewer than 10 days,
- 4% have longer than 10 days.
What if you don’t take a collection after advance notice has been given?
If you have been unable to collect a payment at the advised time, i.e. due to software failure or staff illness etc, don’t panic! Bacs allow collection to occur on, or within, 3 working days after the agreed date. (Note: this is working days and does not include Bank holidays or weekends). You should notify your sponsoring bank if you are going to collect late.
Are you providing advance notice in the correct format?
Advance notice can be provided in written, electronic or oral format, for example:
- payment schedule,
- over the telephone,
- face to face.
Are you including all the mandatory elements in your advance notice?
The advance notice must include:
- service user contact details,
- collection amount(s),
- collection dates(s),
- frequency of collection,
- Direct Debit reference number.
As well as Advance Notices being a requirement under the Bacs Direct Debit Scheme Rules, failure to provide advance notice increases the likelihood that collections will fail which is not in the interests of either yourself or the customer. If you have questions about Advance Notice, please contact us and we will be happy to help.