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What you need to know about cancelling Direct Debits
Published 9 September 2016 by Kyri Levendi
You should always cancel Direct Debits with the company and your account provider.
It can be hard to remember all of the regular payments you need to make each month. That's why setting up a Direct Debit for your monthly commitments – your mobile phone contract, gym membership or utility payments – could make things simpler.
As a thinkmoney customer, you can use Online Account Management (OAM) or the text service to let us know about a Direct Debit you've set up. But what's the process when it comes to cancelling this? We take you through what you should do as a thinkmoney customer.
How to cancel
It couldn't be simpler to cancel a Direct Debit using OAM. Simply log in with your username, email, passcode and online password and select 'Regular Payments' on the right hand side of the screen.
This will bring up a list of all your Direct Debits, so you can search to find the payment you want to amend. Once you find it, select 'View/amend' and this will open up a new screen.
You will see the option to 'Cancel payment' at the bottom of the page, select this. You'll then be asked to confirm that this is the Direct Debit you wish to cancel. If so, select 'Cancel payment'.
The last step is to make sure your budget is updated. Select 'update budgeting' so we can make sure the cancelled payment is factored into your budget each month. It should only take a few minutes to bring your budget up-to-date.
To see how this cancellation has changed your budget, select 'Future budgeting'. You don't need to do this for the cancellation to go through – it's simply to give you peace of mind of how your budget looks without the Direct Debit.
You can use the text service to do this – just text 'CHANGE' followed by 'Cancel' and details of the bill you'd like to cancel to 81122 or 07786 200 077. For example, ‘CHANGE Cancel my Direct Debit for EE for £10 due on 01/09/2016’. This needs to be done two hours before the close of business on the working day before the payment is due.
With OAM, you should cancel the payment the day before it's due to be paid. Find out more about this, with our step by step guide to cancelling your Direct Debits.
It's not only important that you cancel the Direct Debit on our end but with the company taking the payment also.
If you don’t do this, the company could continue to issue a request to take the money out of your account via a Direct Debit mandate. If an error has been made, we will refund it under the Direct Debit Guarantee. But you might have to wait for this and if you had already planned to spend the money on something else, you could be left short for a bill.
To avoid this, get in touch with the company you have the Direct Debit registered with and make sure you inform them you’re cancelling the service. That way, you'll have cancelled from both ends.
And that's it – always inform your bank, building society or alternative provider like thinkmoney that you want to cancel a Direct Debit, as well as the company collecting it.
Have more questions about Direct Debits? Find out all about using your thinkmoney Managed Current Account here.