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Direct debit - time to set up ???

Mal08
Rising Star
Posts: 562
Thanks: 6
Fixes: 2
Registered: ‎20-08-2008

Direct debit - time to set up ???

Having just signed up for Business Teleworker for the small charity office, we had to use direct debit as we don't have credit or debit cards.
So why does it take an additional 7 to 10 days to set up, as I've done other direct debits to open accounts and it is done over the phone, or on the net. ?
It's so frustrating even waiting for the line to be set for ADSL - let alone this additional time.
I know that in many cases the line is often set up within days if a BT engineer visits the exchange for some other reason, and we are on a large exchange just 300 meters down the road ( so hopefully a good speed  Smiley  )
3 REPLIES 3
pjmarsh
Superuser
Superuser
Posts: 3,583
Thanks: 1,253
Fixes: 12
Registered: ‎06-04-2007

Re: Direct debit - time to set up ???

Plusnet wait for the Direct Debit to be in place before they place the order to activate broadband, this is what takes the extra time.  If you pay by debit/credit card the payment is taken straight away.  It's the bank that takes this time to process the Direct Debit and get it in place.  When you have done it else where over the phone or internet then all you have done is given the company the details they need.  If the bank refused the Direct Debit application for any reason (including incorect details given, account not able to have Direct Debits etc...), then that Direct Debit will fail.
Phil

Superusers are not staff, but they do have a direct line of communication into the business in order to raise issues, concerns and feedback from the community.

Spider
Grafter
Posts: 1,100
Registered: ‎05-04-2007

Re: Direct debit - time to set up ???

Although Directs Debits can be set up these days by the company, if memory serves me correct the Direct Debit rules say that it can not be claimed on within the first seven days. If a company claims too soon the claim will automatically rejected so most time the claim for when the DD becomes active. The company however will not find out further two days if the payment as been made, hence the 10 day delay. The risk with a DD if the service is provided immediately is that the customer will default on the payment and so lose the company money.
Mal08
Rising Star
Posts: 562
Thanks: 6
Fixes: 2
Registered: ‎20-08-2008

Re: Direct debit - time to set up ???

Thanks Spider & Phil,
OK I do understand - it's those banks again - being slow etc etc.
Given that so many people these days do have credit/debit card - thers seems to be an assumption that everybody/ every organisation does.
But many companies / organisations do NOT -