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A Guide on How to Kick Start a Direct Debit Process

Direct debit also known as direct withdrawal is kind of a financial transaction in which a company or a person withdraws money from another company or person’s account in a bank. This is a kind of pre-authorized financial procedure which is being used by more than 50% of the inhabitants of UK because it is far more easy and fast than the other methods of payments like cheque, credit or debit card etc.

 

The direct debits UK is a growing and preferred method among most the UK people who have to pay regular expenses such as bills, loans, donations, medical expenses etc. In UK, a customer has to authorize such a payment procedure with his/her bank. If an organization wants to provide direct debit payment facility to its customers then it has to get a SUN which is a kind of user number. A bank provides guarantee to their customer who use direct debit. Incase of any error on the part of the bank during the money transaction the customer will be refunded with the amount that is lost.

 

Using direct debit only requires these steps to be followed:

 

First step is obviously contacting the company you want to make payment through the direct debit. Then that company will make you aware of the direct debit rules they follow and want their customers to follow the same as well.

 

They will also provide you with a form that you will need to fill up. Make sure all the details are correct. The organization will send this mandate form to your bank who will then give the authority to the organization to withdraw the specified amounts on the fixed dates agreed upon by you.

 

The company will send advance notices to you regarding the money withdrawal. Keep a check on that and also ensure sufficient funds are their in your account. This way you can be relieved from any financial tension.

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