Bacs, Direct Debit, Training
27, NOV 2012

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.