The ARUDD report is triggered when you have submitted a collection file in an attempt to collect from your payers. (ARUDD is an acronym made up from the Automated Return of Unpaid Direct Debits).
This report is available to Service Users the day after the day that Direct Debits are due to be collected. On the day that the money is due to be taken from the Payer’s bank accounts the paying bank will check a number of factors to ensure that the Direct Debit is correctly paid or unpaid. Any payments that cannot be made will be returned.
There are a number of different reason codes used in the report depending on why the transaction cannot be completed by the payers bank or by Bacs. The most common of these is usually “Refer to Payer”. This may mean that there are insufficient funds in the account, however this cannot be assumed as there could be a number of other reasons why this occurs. The term “Refer to payer” simply means that the bank are unable to advise the reason for the failed collection. Depending on the circumstance it is sometimes possible to represent an unpaid item, however there are specific rules around doing this.
Other reasons may be “no account” or “no instruction”. These reason codes are much more likely if you are not using AUDDIS instructions and migrating to AUDDIS therefore is likely to result in fewer failures.
The ARUDD report will detail all unpaid items resulting from one of the following reasons:
- Refer to payer
- Instruction cancelled
- Payer deceased
- Account transferred
- Advance notice disputed
- No account
- No Instruction
- Amount differs
- Amount not yet due
- Presentation overdue
- Service user differs
- Account closed
The rationale behind each of these reason codes and the appropriate actions to take in response to them are all detailed on our Clear Direct Debit training courses, more details of which can be accessed on our training pages. If you still have questions, please contact us for more information.