- Bacs, Direct Debit, Training
- 27, NOV 2012
Re-Presenting Unpaid Direct Debits: When and How?
Does your organisation ever have Direct Debits returned to you unpaid? If so, do you try to re-present them? (A re-presented Direct Debit is a debit which has previously been returned unpaid by the bank and is then presented again for collection). Any unpaid Direct Debit can be represented – the authority from the payer to re-present is implicit in the Direct Debit Instruction they signed. You can only do so however, as long as 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 Service Users 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 to recollect if you think it will fail again – it will just cost you time and money!
It is important therefore 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 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.
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. If you would like more information on this topic, please contact us to discuss.