How to Re-Present Unpaid Direct Debits

Does your organisation ever have Direct Debits returned unpaid? If so, do you try to re-present them? (A re-presented Direct Debit is a Direct Debit that is presented again for collection, having previously been returned unpaid by the bank.) Any unpaid Direct Debit can be re-presented—the authority from the Payer to do so is implicit in the Direct Debit Instruction they signed. You can only do so, however, provided certain criteria are met:

– It is re-presented within 30 days of the date of the original presentation.

– The re-presented direct debit is for the same amount as originally presented.

– It is identified by the transaction code ‘18’.

The Bacs Service User’s Guide and Rules to the Direct Debit Scheme state that re-presentation of a Direct Debit should only take place if there is a reasonable assumption that the collection will be successful. This makes sense—there’s no point in trying again to collect if you think that request will also fail—it will just cost you time and money!

Direct Debit returned unpaid

It’s important to ensure you understand why the Direct Debit failed the first time. If it was a timing issue and funds were not available, re-presentation can be the simplest path to a successful collection. If it is because the Payer is disputing the collection, re-presentation may not be so successful and an alternative solution may be required.

Re-presented Direct Debit

Best practice suggests that the customer should be contacted and a new collection date offered. At least 5 working days’ notice must be given for the new collection date.

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